Frontier funds take a shine to Vietnam's 6.7% growth target
Foreign equity fund managers see upside of stocks as FDI and nation's free-trade agreements boost growth
Hanoi
FRONTIER-MARKET equity funds from Sweden to Hong Kong are ready to buy more Vietnamese stocks, attracted by cheap valuations and the fastest economic growth in almost a decade.
Coeli Asset Management and Asia Frontier Capital say they plan to add to their equity holdings this year as record-high foreign direct investments and the nation's free-trade agreements help boost economic growth. Tundra Fonder says it wants to buy consumer, industrial and construction companies.
Vietnam's VN Index is priced at 1.68 times net assets, near a three-year low, after the gauge almost entered a bear market in January as rising US interest rates and a selloff in emerging markets sparked outflows.
The government's growth target of 6.7 per cent in 2016 will be among the world's fastest, girded by rising domestic demand and foreign investment. HSBC Holdings Plc is bullish on Vietnam as attractive valuations and its economic resilience make it a "rare bright spot," according to a report o…
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