This past week, Vietnam’s new government took shape with the election of the three top leaders. In this two-page note from our Chief Economist, Michael Kokalari, we share with you who is filling key positions and why we expect that they will continue with the policies of the past five years, which have helped drive strong economic growth. We believe the continued focus on creating a vibrant investment environment coupled with expanded infrastructure development bodes well for investors, both foreign and domestic.
In today’s insight from VinaCapital’s Chief Economist, Michael Kokalari, we highlight the strength of the banking sector in Vietnam and why we see positive signs both short term and longer term for bank stocks. Bank stocks account for 25% of the VN Index, so healthy banking stocks are very positive for the market. We hope you had a wonderful first quarter of the year and please let us know if you have any questions. Our next piece will be an overview of Q1 performance for the market.
As we approach the end of the of the first quarter, it is encouraging to see many positive signs around the world. Within Vietnam, economic conditions continue to be very favourable, and the stock market’s performance is reflecting this optimism and strength of the economy. In today’s insight from VinaCapital’s Chief Economist Michael Kokalari, we share why the Vietnam Index is leading the way within ASEAN.
In today’s insight from Michael Kokalari, we are reporting about the strength of Vietnam’s economy in January, particularly as it relates to exports. The continued demand for “Stay at Home” goods from the US and Europe is driving this export growth and looks to continue well into 2021. It is also interesting to note how exports from Vietnam have evolved over the last 10 years, from garments to “value added” and technology goods, so the quality of the exports has also improved.
If you are following the Vietnam stock market closely, you have seen an increased level of market volatility in recent weeks. The positive momentum from year end carried into the first weeks of January. These gains have been erased over the past two weeks, however VinaCapital’s longer term outlook for the market and the economy remains very positive. We are sharing insights to help you understand the cause of the volatility and our rationale for believing this is buying opportunity.