How to invest in Vietnamese stocks? The best way to invest in Vietnamese stocks is through ETFs or funds that have Vietnamese stocks in them. There are options that invest in several countries, one of them being Vietnam, as well as ones that invest purely in Vietnam.
There are other ways to invest in Vietnamese stocks as well, but I would say it is much easier to invest through already tradeable ETFs than making an account to Vietnamese broker and accessing the market that way. Unless your broker happens to execute trades on Vietnam’s stock exchange, then the situation might be different. Mine doesn’t offer that kind of service.
Investing in Vietnamese stocks with ETFs
There are several ways to get your hands on Vietnamese stocks. One of them being an ETF that trades with the ticker VNM. It is well diversified with different Vietnamese stocks. And if Vietnam is the one thing you were looking for, that might be a good place to begin your research.
Investing in Vietnamese stocks through index funds
You can try to find index funds that invest in Vietnam as well. The availability can vary in different countries, but you might want to look for something that is purely following some Vietnamese index or find one that follows the MSCI Frontier Markets Index. MCSI Frontier Markets Index according to pdf I found at the time of writing this invests around 30% of its funds in Vietnam.
Risks of investing in Vietnamese stocks
Like every investment, investing in Vietnam also has its own set of risks. The companies are relatively small compared to the giants in the USA and China, for example. Therefore, at least I don’t have much experience in dealing with Vietnamese companies myself.
Other risks might be that Vietnam is run by just one party. Vietnam is still a somewhat politically stable country compared to some of the other Asian countries. However, this can bring more risk to the table since they can, pretty much without warning, turn the whole direction of certain industries. There is also some corruption in Vietnam.
Things to consider when investing to Vietnam
The first thing to take into consideration is that Vietnam has its own currency. This can be considered a good or bad thing. It can be considered as diversification, to keep some of your money in stocks that are traded with something else than US dollars or euros.
Vietnam also has a geopolitically good location. It has a long shoreline, which allows good trafficking through the sea. On top of that, Vietnam also has cheap labor costs. Because of these things, companies might set up their factories more likely in Vietnam than in other countries.
Should you invest in Vietnam?
Vietnam has its own set of risks, but it also brings opportunities. Its economy still has a lot of room to improve, and this can bring opportunities for investors. Investing a portion of your portfolio into Vietnamese stocks might be a good diversification, not just considering it has another set of stocks to offer, but also geopolitically thinking and to keep some of your investments under different currencies.
The decision if you invest in Vietnam is completely up to you. I hope this helped you to find out how to invest in Vietnam and what things you should consider if you decide to do so.
I personally see Vietnam as a potential country to invest in. I currently don’t own any ETFs or funds that invest in Vietnam, but I am going to look more into it. I think Vietnam has a lot of potential.
Other investing-related posts can be found here.
This was a little bit shorter post, but I hope it was helpful. Have a nice day.
This is not financial or investment advice. Past returns are not a guarantee of future returns. Always do your research before risking your hard-earned money.