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š Diversify Beyond the Bubble: Why Vietnam Is a Compelling Opportunity for 2025
As global portfolios remain heavily tilted toward U.S. tech and AI stocks, Vietnam offers a compelling diversification opportunity. With straightforward businesses, consistent growth prospects, and low correlation to global indices, this dynamic market presents a compelling alternative for investors seeking for growth outside conventional paths.
š Vietnam’s 2024: A Year of Progress
Vietnam recorded 7.1% GDP growth in 2024, driven by thriving industrial and agricultural sectors. Key milestones included the launch of Ho Chi Minh Cityās first metro line, a leap forward in infrastructure, and record-breaking FDI disbursement, reaffirming global investor confidence. Under the leadership of the new General Secretary To Lam, the government embarked on its largest restructuring ever, cutting recurring costs and redirecting resources toward infrastructure investment. The political will for growth has never been stronger, marked by a shift from words to action with real, measurable results already in motion. On the stock market, the VN-Index delivered a solid total return in USD of 8.8%, and Vietnam is on track to join the FTSE Emerging Market Index by September 2025.
š 2025 Outlook: Balanced Growth and Valuation
Vietnam enters 2025 with an investment landscape brimming with potential. Earnings of listed companies are projected to grow 16.3%, paired with an attractive forward P/E of just 10.1x, making it highly appealing to value-focused investors. The economy is forecast to expand 7.4%, fueled by ambitious infrastructure projects and improved governance. While global trade tensions continue, Vietnamās proactive efforts to address its U.S. trade surplus help lower the risk of potential tariffs, reinforcing investor confidence. With its growing reputation as a reliable FDI destination, Vietnam is cementing its role as an attractive alternative production base for global industries.
The momentum is real, and please feel free to contact us to explore why Vietnam deserves a place in your portfolio.
TIM
