Vietnam stocks outperforming Asean peers

Hanoi

VIETNAM stocks are pricier than their South-east Asian peers for the first time in two years - and they are about to become more expensive.

"There is room to grow," said Dominic Scriven, Ho Chi Minh City-based chairman at Dragon Capital. "We are looking for 19 per cent net growth for earnings next year," as the economy expands and inflation remains stable, he said.

The benchmark VN Index is trading 15.9 times earnings, compared with the MSCI South East Asia Index which is at 14.7. A 15 per cent gain in the VN Index has led to its outperformance versus the MSCI Frontier Markets Index and the South-east Asia benchmark gauge. The gauge rose 0.2 per cent at close on Tuesday.

The market's "valuation is expected to continue rising in 2017" because of upcoming listings of attractive companies, said Le Nguyet Anh, head of research at A…