VNM: Still An Attractive Frontier Market Growth Story

Having turned the page in 2023, Vietnam's emergence as one of the more promising equity markets in Asia looks poised to continue. Even after last year's rally, stocks haven't quite recouped its 2022 losses – the result of monetary tightening and a major bank failure (Saigon Commercial Bank), as well as broader contagion concerns. Vietnamese corporates aren't out of the woods just yet, though, as financial stress continues to manifest in elevated bad debt, slower bond issuances and real estate activity. But the rate of change is positive, as Fitch's recent sector-wide upgrade showed - no doubt helped by supportive government policies, e.g., (corporate bond maturities and loan repayment extensions) and an aggressive monetary easing cycle.

seekingalpha.com     Jan 08, 2024