There’s no Vietnam exchange traded fund (ETF) yet, but there’s already one in registration, and now there’s another index.

Standard & Poor’s has launched the first index tracking the largest and most liquid companies in Vietnam. The S&P Vietnam 10 Index adds to the Asian line of equity indexes within the S&P family. Previously, Vietnam was only tracked within the broad-based Asian indexes, so says Index Universe staff.

Companies to be included in the index must have a float-adjusted market capitalization above $50 million and a three-month average daily trading value above $250,000, and must trade on local Vietnam exchanges. Sectors covered include consumer discretionary, energy, financials, industrials, information technology, materials and utilities. Vietnam is currently classified as a frontier country, and has gained much attention from speculators.

According to insiders, the biggest challenges Vietnam faces right now are human resources development, infrastructure development and economic stability. According to Prime Minister Nguyen Sinh Hung, the Vietnamese has overcome its toughest period. The price growth has reduced, the economy has stabilized and social security is insured, reports Nahn Dan.

While the crisis in the United States will have a negative impact on the country, there are steps they can take to reduce that exposure, such as by diversifying their export markets and increasing trade with other developing countries.

Tags: Asia, Emerging Markets, Frontier Markets, Sector ETFs, Vietnam