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Vietnam stocks nearing record high build a case as a haven

Bloomberg4/7/2022 08:52 AM GMT+08  • 2 min read
Vietnam stocks nearing record high build a case as a haven
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Vietnam’s stock market is building a case to be a safe haven among developing-nation peers, bolstered by a reopening of trade and tourism, accelerating economic growth and rising corporate earnings.

The benchmark VN Index is up over 1% this year, outperforming the nearly 8% decline in a MSCI gauge of Asia frontier market stocks. The index is just 0.4% shy of an all-time high and could continue its climb despite elevated inflation and headwinds from the war in Ukraine, money managers say.

Company fundamentals are one key reason for the optimism. Profit growth of the top 60 firms is expected to average about 23% this year on a free-float adjusted basis, said Bill Stoops, chief investment officer of the nation’s largest fund, Dragon Capital Group. Leaders like banks and property developers could even see growth of 30% compared to a year ago, he said.

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