Vietnam stock market expected to lead Asean performance

THE stars are aligning for Vietnam’s stock market on the back of rising liquidity, improving valuations, and the government’s effort to push the country forward on the governance and macroeconomic fronts. Market watchers believe it is poised to outperform its South-east Asian counterparts.

Quan Trong Thanh, head of research at Maybank Investment Bank Vietnam, noted the country’s stock market has already outperformed other regional markets with a gain of 18 per cent in the year to date.

Much of this outperformance can be attributed to a spell of overselling in the fourth quarter of last year, amid policy tightening and widespread panic over a potential collapse of the country’s property and bond markets.