Vietnamese equities have risen sharply since the beginning of 2016 and are now at a nine-year high. This bullishness reflects the ongoing reform process, as well as the robust health of the economy. Yet valuations remain cheap.
The 2017 price-to-earnings ratio is just 13 times, on 17 per cent projected earnings per share growth, which is undemanding in its own right and very attractive versus regional peers.
With market development, economic strength and brisk profitability all expected to continue, the Vietnamese stockmarket looks set to carry on rising for some years to come, with investment opportunities for foreign investors becoming available at various stages of this process.
Bill Stoops is chief investment officer at Dragon Capital