Unlocking Vietnam's Economic Potential

seekingalpha2023-11-14

Vietnam is becoming an increasingly attractive investment destination thanks to its sturdy GDP growth, strides in its high-tech manufacturing capabilities, and strong US ties.The nation is drawing ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2383909299?lang=en_US&edition=fundamental","thumbnail":"https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1716858811/image_1716858811.jpg","is_english":true,"pubTime":"2023-11-14 15:05","share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","id":"2383909299","market":"us","top_or_hot":-1,"title":"Unlocking Vietnam's Economic Potential","media":"seekingalpha","content":"<div>\n<p>Vietnam is becoming an increasingly attractive investment destination thanks to its sturdy GDP growth, strides in its high-tech manufacturing capabilities, and strong US ties.The nation is drawing ...</p>\n\n<a href=\"https://seekingalpha.com/article/4651450-unlocking-vietnam-economic-potential\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Unlocking Vietnam's Economic Potential</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUnlocking Vietnam's Economic Potential\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-11-14 15:05 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4651450-unlocking-vietnam-economic-potential><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Vietnam is becoming an increasingly attractive investment destination thanks to its sturdy GDP growth, strides in its high-tech manufacturing capabilities, and strong US ties.The nation is drawing ...</p>\n\n<a href=\"https://seekingalpha.com/article/4651450-unlocking-vietnam-economic-potential\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0072462426.USD","symbol_name":"贝莱德全球配置 A2","start_time":0,"source_url":"https://seekingalpha.com/article/4651450-unlocking-vietnam-economic-potential","article_id":"2383909299","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1716858811/image_1716858811.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2383909299","pubTimestamp":1699945500,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Vietnam is becoming an increasingly attractive investment destination thanks to its sturdy GDP growth, strides in its high-tech manufacturing capabilities, and strong US ties.The nation is drawing for","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0072462426.USD":"贝莱德全球配置 A2","SNPS":"新思科技","BK4515":"5G概念","CDNS":"铿腾电子","BK4571":"数字音乐概念","NVDA":"英伟达","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","BK4576":"AR","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","LU1242518857.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"I\" (USD) ACC","IE00BJJMRY28.SGD":"Janus Henderson Balanced A Inc SGD","BK4575":"芯片概念","IE00BMPRXN33.USD":"NEUBERGER BERMAN 5G CONNECTIVITY \"A\" (USD) ACC","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","SG9999004303.SGD":"Nikko AM Shenton Global Opportunities SGD","LU2063271972.USD":"富兰克林创新领域基金","VNM":"VanEck VietnamETF","BK4559":"巴菲特持仓","BK4579":"人工智能","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","BK4550":"红杉资本持仓","LU1861214812.USD":"Blackrock Future of Transport A2 USD","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4141":"半导体产品","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","LU1046421795.USD":"富达环球科技A-ACC","BK4551":"寇图资本持仓","LU1861215975.USD":"贝莱德新一代科技基金 A2","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","MRVL":"迈威尔科技","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","FXCOF":"Foxconn Technology Co., Ltd.","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","AAPL":"苹果","LU2458330243.SGD":"FRANKLIN SHARIAH TECHNOLOGY \"A-H1\" (SGDHDG) ACC","LU0289739343.SGD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"A\" (SGD) ACC","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","QCOM":"高通","BK4529":"IDC概念","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU2458330169.SGD":"FRANKLIN SHARIAH TECHNOLOGY \"A\" (SGD) ACC","LU0957808578.USD":"THREADNEEDLE (LUX) GLOBAL TECHNOLOGY \"ZU\" (USD) ACC","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0238689110.USD":"贝莱德环球动力股票基金","LU1923622614.USD":"Natixis Thematics Meta R/A USD","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H"},"translate_title":"释放越南的经济潜力","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VNM":1,"SNPS":1,"QCOM":1,"NVDA":1,"MRVL":1,"AAPL":1,"CDNS":1,"FXCOF":1},"content_text":"Vietnam is becoming an increasingly attractive investment destination thanks to its sturdy GDP growth, strides in its high-tech manufacturing capabilities, and strong US ties.The nation is drawing foreign investment and making strides in high-tech manufacturing, particularly semiconductors, positioning itself in the global supply chain.With a booming rare earths industry and strong US ties, Vietnam is set to play a pivotal role in various sectors.   Dilok Klaisataporn/iStock via Getty Images Vietnam is becoming an increasingly attractive investment destination thanks to its sturdy GDP growth, strides in its high-tech manufacturing capabilities, and strong US ties. Vietnam's resilience shines as its GDP steadily grows despite global challenges. The nation is drawing foreign investment and making strides in high-tech manufacturing, particularly semiconductors, positioning itself in the global supply chain. With a booming rare earths industry and strong US ties, Vietnam is set to play a pivotal role in various sectors. This blog explores what makes Vietnam an attractive investment destination. Economic Resilience Vietnam’s GDP grew by 8.0% in 2022 as the country’s economy benefited from exports of goods during the COVID-19 pandemic. This year Vietnam’s economy has stabilized at a GDP growth of 5.3% year-over-year (YoY) in 3Q 2023.1 The country’s economy has been fairly resilient despite headwinds from higher commodity prices resulting from the Russia-Ukraine war and a slowdown in China, which happens to be one of Vietnam’s largest trading partner. Climbing the Value Chain Ladder Vietnam's trade faced some headwinds this year due to reduced demand from major trade partners. Exports fell 10% YoY2 in the first eight months of 2023 and finally turned positive in September. Vietnam’s manufacturing sector's contribution to the economy is growing, but the value it adds has remained relatively flat, despite declining by 0.37% in 2023 compared to 2022.3 This means that although Vietnam is producing more, it's not capturing more of the value within its borders. This is partly due to fragmented supply chains, revealing Vietnam's import-dependent status. Vietnam’s government is keenly aware of this challenge and is actively trying to lure foreign investments in high-tech manufacturing particularly in the semiconductor sector. The country has signed multiple Free Trade Agreements (FTAs) to encourage foreign cooperation with its local industries. Policy makers are also offering supportive measures such as tax incentives, preferential loan rates, waived import duties and preferential land use fees for high tech factories. Strong government support appears to be yielding some early results. The country has achieved impressive growth in electronics exports, notably to the United States. From virtually zero, Vietnam now accounts for around 10% of all U.S. electronics imports.4 Sharp rise in electronic, computer, and phone manufacturing has driven Vietnam’s export growth  Source: JP Morgan Research Strong Foreign Investment in Vietnam Continues Despite facing a challenging environment characterized by sluggish growth and lackluster export performance throughout the year, Vietnam has managed to attract $15.9 billion in Foreign Direct Investment (FDI) YTD.5 The manufacturing sector maintained its position as the primary attraction for FDI, with investments exceeding $14 billion YTD, reflecting a substantial gain of 15.5% YoY. This achievement is significant given the prevailing uncertainty, inflationary pressures, and waning confidence in the global economic landscape. Key Apple suppliers such as Foxconn Technology Group (OTCPK:FXCOF), GoerTek Inc., Luxshare Precision Industry Co., and Pegatron Corp. have set up factories in Vietnam; bringing electronics industry share of total exports to 32% in 2022.6 Vitenam: Foreign Direct Investment (Realized Capital) Flows  Disbursed foreign direct investment flows into Vietnam. Graphics by UOB Strategic Materials, Semiconductors and Friend-shoring Vietnam has the world’s second largest reserves of rare earths, estimated at 22 million tonnes second only to China.7 Its rare earths industry is booming with 2022 production of 4,300 tonnes up about 11 times relative to its 2021 production of only 400 tonnes.7 The country aims to raise its rare earths production to 2.02 million tonnes a year by 2030. Foreign companies including Korean and Chinese magnet firms, which include an Apple (AAPL) supplier are set to open factories in Vietnam to diversify supply chains away from China. China currently holds a dominant position in the production of magnets and the essential rare earth metals used in their manufacturing. These magnets are crucial components in various products, including electric vehicles, wind turbines, weapons, and smartphones, making this sector of significant strategic importance. Vietnam has begun developing a processing industry in this field and has the potential to emerge as a substantial competitor in the rare earth metals and magnets sector.8 Vietnam has emerged as a beneficiary of U.S.-China decoupling and the U.S. is Vietnam’s largest trading partner accounting for 33% of its exports.9 The U.S. recently signed the U.S.-Vietnam Comprehensive Economic Partnership agreement to enhance cooperation between the two countries in a wide range of industries. One specific partnership to note is the U.S.-Vietnam pledge to actively support the rapid development of Vietnam's semiconductor ecosystem. The U.S. is committing seed funding of $2 million to kickstart the semiconductor workforce development initiatives in Vietnam. Semiconductors are a critical component in various technologies, and this collaboration aims to improve Vietnam's position in the global supply chain for semiconductors, indicating the significant role Vietnam is poised to play in the industry's growth. A bilateral Memorandum of Understanding was also agreed to secure critical mineral supply chains, including technical cooperation to help develop Vietnam's rare earths industry. Vietnam’s government has been courting key players in internal circuit design and semiconductor industries in order to encourage more investment into the country. These firms include industry leaders such as Nvidia (NVDA), Synopsys (SNPS), Qualcomm (QCOM), Marvell (MRVL), and Cadence Design Systems (CDNS). These are all positive developments for Vietnam and speak to the country’s future technological potential. In conclusion, Vietnam stands at the threshold of an exciting economic transformation. The nation has demonstrated impressive resilience, attracting foreign investments and fostering growth in high-value sectors. With substantial rare earth reserves and a growing semiconductor sector, Vietnam is poised to become a vital player in global supply chains. The strong partnership between the U.S. and Vietnam further solidifies the nation's position in the global economic landscape. Investors looking for growth opportunities should keep an eye on Vietnam as it climbs the value chain and expands its presence in strategic sectors, making it a compelling investment destination. Broad-based indices have also aptly captured the dynamic changes in Vietnam’s economy. The average weight of materials sector in the MarketVector Vietnam-based indices increased over 70%, while the average weight of industrials sectors increased 20% since the index’s inception in August, 2009.10 The current geopolitical environment could boost growth in Vietnamese companies operating in materials, industrials, and information technology sectors. These favorable trends shaping the Vietnamese economy could likely benefit investors with exposure to Vietnamese equities. How to Invest VanEck Vietnam ETF (VNM) provides access to the growth story of Vietnam and could be an appealing investment for investors seeking growth exposure outside of traditional emerging markets. VNM, the largest and most liquid11 U.S. - listed Vietnam ETF provides investors one trade access to the Vietnamese market.  Disclosures 1 Vietnam estimates Q3 GDP growth of 5.33% y/y. 2 Vietnam August exports slide, but factory output improves. 3 Boosting Vietnam's manufacturing sector: From low cost to high productivity. 4 JP Morgan Research. 5 Data as of 9/30/2023, Source: VNEXPRESS International. 6 Vietnam, Poland, Mexico, Morocco Benefit From US-China Tensions - Bloomberg. 7 Vietnam aims to raise raw rare earths output to 2 million tonnes a year by 2030 | Reuters. 8 Exclusive: Rare earths magnet firms turn to Vietnam in China hedge | Reuters. 9 Data as of 12/31/2022 Macrotrends | The Long Term Perspective on Markets. 10 Factset data as of 10/31/2023, representing Vietnam incorporated companies only. 11 Factset data as of 10/31/2023. This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the author(s), but not necessarily those of VanEck or its other employees. An investment in the Fund may be subject to risks which include, but are not limited to, special risk considerations of investing in Vietnamese issuers, foreign securities, emerging and frontier market issuers, foreign currency, depositary receipts, real estate sector, consumer staples sector, financials sector, basic materials sector, small- and medium-capitalization companies, cash transactions, equity securities, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, issuer-specific changes, non-diversified and index-related concentration risks, all of which may adversely affect the Fund. Emerging and frontier market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Small- and medium-capitalization companies may be subject to elevated risks. Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus and summary prospectus, which contains this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing. © Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation. Original Post  Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2383909299"}