Vietnam’s GDP expanded +8.23% in the third quarter, marking the strongest quarterly growth since 2011. The government is targeting growth rates of up to 10% in the coming years. Banks’ loan growth has also accelerated this year on the back of rising demand. Overall, domestic economic indicators remain highly encouraging, while exports continue also to deliver growth of more than 10%. Strong government measures, strengthening consumer demand, and ample liquidity in the money market are all pushing Vietnam’s economy into an even faster growth phase.
Q3 earnings from our largest portfolio holdings will get published this week, but the companies that have already reported results have generally shown very promising figures.
During September and October, profit-taking hit the market, particularly targeting brokerage and banking stocks held by PYN Elite. This has weighed on the fund’s NAV performance relative to the VN Index.
In our view, the setback is only a temporary bump, as the main trend in Vietnamese stock market appears to be clearly bullish. This is supported by solid economic development as well as strong corporate earnings growth.