In 2014, 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.
“Local logistics providers, despite their small market shares, can still gain greatly from such expansion whereas Northern seaport operators should enjoy higher revenue growth in the near term as demand outpaces supply. … [for the]textile-garment sector, increasing competition from bigger and more resourceful players from mainland China, Hong Kong and Taiwan will put a cap on sales growth,” adds RongViet in the note posted by Barron’s.
Market Vectors Vietnam ETF
