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PR Newswire
07-06-2022, 09:51 PM
Cheap valuations, strong growth: Fund manager says it’s time to buy Vietnam stocks
* The VN index in Vietnam has fallen more than 10% this year, and Dragon Capital’s Thao Ngo says it’s time for investors to enter the market.
* As of its Monday close, Vietnam’s benchmark index has declined close to 14% for the year, a sharp reversal following two years of blockbuster gains in the earlier phase of the pandemic.
* Ngo outlined multiple reasons why the firm is bullish on the Southeast Asian economy, including political stability and its macro policy.
Eustance Huang
PUBLISHED TUE, JUN 7 202212:23 AM EDT
Vietnam’s stock index has fallen more than 10% this year, and one portfolio manager says now is a “good time to consider investing in Vietnam.”
As of Monday’s close, the VN index has fallen close to 14% for the year — a sharp reversal following two years of blockbuster gains for the benchmark index in the earlier phase of the pandemic.
Those losses, however, are largely in line with its global peers as investors largely reposition for safety against a backdrop of rising interest rates and fears of a potential global recession.
Dragon Capital, a Vietnam-focused investment firm with $7 billion in assets under management, says valuations in the country are now cheap, and have forecast earnings per share growth of over 20% in 2022.
Vietnam’s banking and retail sectors are looking attractive, said Thao Ngo, portfolio manager at the firm on Monday.
Banking stocks have a big potential for growth in the mass market segment as more than half of Vietnam’s population is currently “underserved” in banking, while retail stocks are set to see a strong recovery in earnings from post-pandemic pent-up demand, she explained.
“Our investment strategy is to deliver long-term growth for investors,” Ngo said on CNBC’s “Squawk Box Asia.”
“We have been focused on the three key theme[s] at the moment: Firstly is the urbanization, middle class formation and also strong domestic consumption.”
More details in https://www.cnbc.com/2022/06/07/good-tim...pital.html
VNM ETF ?
* The VN index in Vietnam has fallen more than 10% this year, and Dragon Capital’s Thao Ngo says it’s time for investors to enter the market.
* As of its Monday close, Vietnam’s benchmark index has declined close to 14% for the year, a sharp reversal following two years of blockbuster gains in the earlier phase of the pandemic.
* Ngo outlined multiple reasons why the firm is bullish on the Southeast Asian economy, including political stability and its macro policy.
Eustance Huang
PUBLISHED TUE, JUN 7 202212:23 AM EDT
Vietnam’s stock index has fallen more than 10% this year, and one portfolio manager says now is a “good time to consider investing in Vietnam.”
As of Monday’s close, the VN index has fallen close to 14% for the year — a sharp reversal following two years of blockbuster gains for the benchmark index in the earlier phase of the pandemic.
Those losses, however, are largely in line with its global peers as investors largely reposition for safety against a backdrop of rising interest rates and fears of a potential global recession.
Dragon Capital, a Vietnam-focused investment firm with $7 billion in assets under management, says valuations in the country are now cheap, and have forecast earnings per share growth of over 20% in 2022.
Vietnam’s banking and retail sectors are looking attractive, said Thao Ngo, portfolio manager at the firm on Monday.
Banking stocks have a big potential for growth in the mass market segment as more than half of Vietnam’s population is currently “underserved” in banking, while retail stocks are set to see a strong recovery in earnings from post-pandemic pent-up demand, she explained.
“Our investment strategy is to deliver long-term growth for investors,” Ngo said on CNBC’s “Squawk Box Asia.”
“We have been focused on the three key theme[s] at the moment: Firstly is the urbanization, middle class formation and also strong domestic consumption.”
More details in https://www.cnbc.com/2022/06/07/good-tim...pital.html
VNM ETF ?
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