Policymakers have been working on initiatives to encourage foreign investment by raising the cap on foreign ownership in local companies to more than 49% and one fund manager cited by Bloomberg expects news on that issue to emerge within the next two months.
Earnings growth is expected to be a robust 15% this year in Vietnam, with materials and staples names, a combined 13.5% of VNM’s weight, leading the charge. VNM has a trailing 12-month P/E ratio of 12.37 and a three-year correlation of just 0.47 to the S&P 500, according to Market Vectors data.
Market Vectors Vietnam ETF
