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Vietnam tipped as good buy for UK investors
For investors keen on getting in ahead of the crowd, the UK daily Telegraph recommends an investment in Vietnam now while it is still cheap.
The online newspaper said that the country certainly has a lot going for it. It has one of the highest literacy rates in Asia, at 90 percent, and the workforce is young, hard-working and optimistic.
Almost two-thirds of Vietnam 's 85 million people are under the age of 35 – and this should support economic growth over the medium term. A young population implies significant population growth in the future, which should stimulate demand further.
For the 10 years before the credit crunch hit, Vietnam was Asia's second-fastest growing economy after China. The country tabled an average growth in GDP of 7.5 percent a year. This year's government target is 5 percent.
While noting that there are limited ways that a UK investor can invest in this fledgling economy, the newspaper recommended the Vietnam Opportunity Fund, which is managed by country specialist VinaCapital, as one of the easiest ways for UK investors to play growth in the Asian nation.
The fund's mandate is to invest at least 70 percent of its cash in Vietnam, with the remaining 30 percent in China, Cambodia and Laos .
As of August 31, Vietnam Opportunity Fund's net asset value per share was 2.44 USD – up 12.2 percent in just one month.
For investors seeking substantial long-term capital growth, shares in the Vietnam Opportunity Fund are a buy, the paper affirmed.
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