Vietnam’s VinaCapital Fund Management is bullish on banking, property and infrastructure in the Southeast Asian country.
These are the sectors that will benefit from domestic consumption growth, according to Andy Ho, chief investment officer of VinaCapital, which managed US$4 billion of assets as of end-2023.
He and Chief Economist Michael Kokalari discussed the company’s predictions and outlook in an email exchange with Asia Asset Management.
“We have always focused on sectors that are benefiting from the growth of Vietnam’s domestic consumption story. For 2024, we believe the best opportunities are in sectors such as banks, real estate, infrastructure, industrial parks, construction, and building materials,” Ho says.
VinaCapital forecasts Vietnam’s economy to accelerate from 5.05% in 2023 to 6%-6.5% this year and 6%-7% per annum over the next three to five years, driven partly by a bounce-back in exports.
Ho advises investors to buy stocks of top tier companies that operate in sectors that will benefit from the growth.
Exports are seen to rebound 7% this year after a 4% decline in 2023.
“The demand for ‘Made in Vietnam’ products from consumers in the US and Europe has already started to recover and is likely to accelerate as 2024 progresses,” Kokalari says.
“Consumption by local Vietnamese was nearly flat last year, partly because sentiment was depressed by layoffs in the manufacturing sector. But consumption started recovering in late 2023 and we expect the momentum to continue in 2024 as factories begin rehiring workers,” he adds.
