Recently, Vietnam has attracted global investor interest as a potential beneficiary of the ongoing trade war between the U.S. and China, but investors have also taken notice of the country’s attractive long-term fundamental characteristics, including strong growth rates and attractive demographics.
Vietnam’s growth rate has increased since the 2008 global financial crisis. For the last 10 years, Vietnam’s annual GDP growth rate has exceeded 6%, compared to an average of 5% for emerging market countries. In 2018, Vietnam’s GDP growth is estimated to have exceeded China’s by around 50 basis points (7.08% in Vietnam vs. 6.57% in China).1
Vietnam's GDP Growth Exceeds China
Source: International Monetary Fund. Data as of April 2019.
About the Author:
John Patrick Lee serves as ETF Associate Product Manager at VanEck Associates Corporation. He helps to support a number of different VanEck Vectors ETFs, including international bonds, international equity, industry and muni ETFs. He holds a B.A. in English Literature from the College of William and Mary, and is a CFA Charterholder.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.Sources:
1International Monetary Fund. Data as of April 2019.