In 2015, Vietnam is expected to exhibit better GDP growth of 6.5% YoY (thanks to private consumption growth), as economic restructuring from 2012 begins to deliver fruitful results, with macro stability ensured (low inflation, bad debt to 3%, stable VND – relatively to its peers). This might ultimately translate into sovereign credit rating upgrade, closer to investment grade. For its stock market, valuation remains cheap (2015 Price to Earnings ratio at 12.39x) and the new wave of state-owned enterprises’ IPOs could engulf the market with more sound investment opportunities, and quality stocks under the new regulation which requires a faster listing process.
Vietnam GDP & private consumption growth 2006-2015 (Source: CEIC, SSI Research)
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