Insights With Topics: Vietnam


Given the trade tensions and looming risks of de-globalisation, it is likely that China will embark on a different growth path in the aftermath of COVID, and increasingly rely on domestic demand to drive growth. This structural shift holds significant implications for EM Asia. In fact, ASEAN replaced the European Union as China’s biggest trading partner in 1Q20. And as a result of the increased tension and US protectionist measures targeting China, and pressure for MNCs to choose which one they side with under the pretext of protection against production disruptions in China, ASEAN and notably Vietnam are clear winners. But a more nuanced picture is closer to the truth. That is, the shifts in supply chains are more likely to be gradual than dramatic.


May 18, 2020


Vietnam government has started a gradual and orderly reopening since April 23rd, though the macro data was still weak as expected due to the lockdown around the world. After initially keeping the goal for 5% GDP growth this year the government revised growth target last week to a two-scenario range of 4.4%-5.2% if major trading partners can control the outbreak by end of Q3 and 3.6%-4.4% if by Q4. How are things doing in Vietnam at the moment? Is it the time to position for recovery? Here is a quick update on the various.


May 18, 2020


Market has been focusing on the export side of Vietnam and how it will benefit from the trade war in the past few months. Of course, that is happening and more foreign companies from garments, furniture, packaging to electronics are setting up their factories in Ho Chi Minh, Honai, Bac Ninh, Thai Nguyen, etc. We, however, think it is worthwhile to consider another side of the growth story here: domestic consumption. The continuing economic growth, rising of middle class, and increasing urbanization will all help consumption to grow significantly in Vietnam ahead.


Aug 26, 2019


Vietnam is seen as the country benefited from the trade war between China and the US. Samsung is assembling half of its mobile phone in Vietnam and Apple is also beginning to start the production in the nation, so it is not surprising if your next iPhone will be made in Vietnam. Investors are enthusiastic about the bright prospects of Vietnam as major upcoming world factory, but Trump’s recent critics lead to a concern if this Southeast Asian country may become the next victim of trade war. We will elaborate further about the trade situation of Vietnam at the moment, the outlook in near future, and the market reaction in this article.


Jul 31, 2019


Vietnam is increasingly spoken about as one of the biggest beneficiaries of the trade war and as a market to watch going forward. However, the tools to access Vietnam remain limited. On July 18 (subject to final approvals) we will list the MSCI Vietnam strategy to make it easier for investors to access this dynamic and fast growing market.


Jul 4, 2019