The State Securities Commission said it would remove limits on foreign ownership of Vietnamese companies. The changes to foreign ownership limits are expected to take effect in September. Consequently, many expect overseas investors to jump into local markets.
Last year, Vietnam formed a commission to explore taking the necessary steps for the country to shed its frontier status and gain entry into the widely followed MSCI Emerging Markets Index.MSCI does not have Vietnam on its list of markets that could potentially be upgraded to emerging markets status. When the index provider recently revealed its annual market classification, Pakistan was the only frontier market highlighted as being a potential candidate for promotion to the MSCI Emerging Markets Index. [Vietnam Wants EM Promotion]
“The latest boom in Vietnam has been fueled by foreign direct investment, or FDI, in the manufacturing sector, as large Japanese, Korean, and Taiwanese companies switch from China,” according to Barron’s.
Market Vectors Vietnam ETF
