Accelerating economic growth in Vietnam should start to boost the stock market

Vietnam’s economy is on the right track, even though it may not be evident from the recent decline in stock prices. In this Investor letter, we will take a closer look at the positive developments:

  • Vietnam has managed to lower interest rates, and the corporate bond market is normalizing.
  • The central bank has created favorable conditions for growth. In the third quarter, Vietnam’s GDP grew by +5.3%, and in September, Vietnam’s exports turned to growth.
  • Vietnam’s stock market currently offers attractively priced stocks. A P/S ratio of 1.3 indicates a clear upside potential in the market for the next 12 months.
  • Vietnam’s stock market is taking steps toward market modernization. The regulatory body SCC and major brokerages are working together on solutions for issues such as transaction settlement responsibilities.
  • President Joe Biden’s visit to Vietnam resulted in a significant development in the relationship between the United States and Vietnam. The U.S.A. and Vietnam declared their relationship to be a Comprehensive Strategic Partnership, which was a much more significant commitment than anticipated. This means that the economic cooperation between the two countries will reach an entirely new level.

You can read the Investor letter here.

Important information regarding the text and the Fund

The attached publication is marketing material and should not be regarded as a recommendation to subscribe or redeem units of the PYN Elite Fund. Before subscribing please familiarize yourself with the Key Information Document, the Prospectus and the Rules of the Fund. The material presented in this text is based on PYN Fund Management’s view of markets and investment opportunities. PYN Elite Fund (non-UCITS) invests its assets in a highly allocated manner in frontier markets and in a small number of companies. This investment approach involves a larger risk of volatility compared to ordinary broadly diversified equity investments. The value of an investment may decline substantially in unfavorable market conditions or due to an individual unsuccessful investment. It is entirely possible that the estimates of economic development or a company’s business performance presented in this presentation will not be realized as presented and they involve material uncertainties.