It has been a rewarding yet challenging year for the Vietnamese equities. To get a better idea of the situation, one can look at what has happened to FPT, which is a favourite ticker among institutional investors and the country’s most successful IT group. The company’s share price has fallen by 20% YTD, while the VN-Index has risen by 30%.
PYN Elite has performed reasonably well in market conditions that can be characterised as good but challenging. The stocks in our portfolio have outperformed the VN-Index since the start of the year.
Going forward, significant public investments in Vietnam will boost investments in the private sector and stimulate companies’ willingness to grab into new opportunities and take risks. The resulting strong economic growth supports a favorable earnings growth outlook for listed companies.
The positive momentum in the stock market can continue, as earnings growth will bolster the rise in stock prices and keep the market reasonably priced. Bloomberg’s consensus forecasts for 2026 would put the P/E ratio of the Vietnamese stocks at just 11.8, which is an attractively low ratio for equities in a rapidly developing country.
Read more about the Vietnamese market and PYN Elite’s portfolio in the new Investor letter.