Vietnam's transition from a frontier to an emerging market and points to the reforms that have led to its remarkable growth, according to an analysis by VanEck. (Photo: VNA)As reported by the news site asiafundmanagers.com, the analysissaid the country’s transition from a frontier to an emerging market and pointsto the reforms that have led to its remarkable growth.
“Vietnam’s economic reforms have created a virtuous cycle:reforms spurred exports, which in turn drove economic growth, leading to increaseddomestic demand. This trajectory has positioned Vietnam as a dynamic andintegral part of the global economy, with a domestic market that continues toshow robust growth potential,” said John Patrick Lee, Product Manager atVanEck, as quoted by the site.
Lee further pointed out that Vietnam’s economic growth isbuoyed by its young and growing population. With over 60% of the populationunder 30 and a literacy rate above 90%, this dynamic is fostering a strongdomestic demand driven by a burgeoning middle class with rising disposableincome. Compared to other emerging markets, Vietnam’s private consumption ratioto GDP ranks it mid-range, higher than Saudi Arabia and China but lower thanBrazil and the Philippines. This robust domestic demand offers Vietnamresilience against external challenges.
When it comes to the equity market, VanEck believes thatVietnam is an emerging opportunity investors should look closely at. Lee alsosaid he sees the biggest equity opportunities in financials, real estate andconsumer staples./.
VNA
