Vietnam: The New Frontier in Emerging Markets?

As some emerging market economies begin to slow, Vietnam could be at the beginning of a multiyear growth cycle. Daniel Graña, Portfolio Manager, Emerging Market Equity, explains why he thinks Vietnam’s outlook is so positive and why investors should take note.

Key Takeaways

  • Some emerging market economies have started to mature, leading to slower growth. But Vietnam could be one notable exception.
  • The country is capturing an increasing share of foreign direct investment, thanks in part to an educated workforce and improved infrastructure. Such investment could help create an appealing cycle of wage growth and topline expansion.
  • However, Vietnam is still a frontier market, so investors must consider liquidity, governance and accounting standards. Even so, we believe the country is moving in the right direction.