Vietnam is developing rapidly: a young, digitally savvy population, ambitious reforms and rising investment are making the country an increasingly important economic location in Southeast Asia. In a video interview with e-fundresearch.com, Caroline Wirth, Head of Business Development at Aquis Capital, talks about the long-term growth drivers, current market developments and opportunities for investors in the Vietnamese stock market.
With the upgrade of Vietnam from a Frontier Market to a Secondary Emerging Market by FTSE Russell, the Southeast Asian market has reached an important milestone. For Mario Timpanaro, Head of Emerging Markets at AQUIS Capital, this upgrade comes as no surprise but is rather the logical consequence of comprehensive market and infrastructure reforms. In an interview with e-fundresearch.com, he explains why this decision paves the way for a future MSCI upgrade, what capital flows can now be expected, and how the Lumen Vietnam Fund is strategically positioned.
e-fundresearch.com: How do you generally assess FTSE Russell’s upgrade of Vietnam from Frontier to Secondary Emerging Market status? Was the decision surprising to you, or was it foreseeable given the recent market and infrastructure reforms?
Mario Timpanaro: Most importantly, the FTSE upgrade paves the way for a future MSCI upgrade. It marks a milestone — not a surprise, but the logical consequence of recent market and infrastructure reforms. Authorities have clearly improved trading, clearing, transparency, and equal treatment of domestic and foreign investors, gradually aligning themselves with international best practices. The symbolic significance is great: Vietnam is positioning itself as an investable, competitive market with broader access for international capital.
The reform momentum is likely to continue. To meet FTSE EM criteria, the government has accelerated long-overdue reforms; beyond the upgrade, additional key steps are planned to further align capital markets with the needs of international investors. The Ministry of Finance is introducing a Central Clearing Counterparty model (CCP) — a mandatory market standard and key requirement for both FTSE and MSCI upgrades. Building on that, securities lending and later options trading are expected to follow. All these measures will enhance stock market liquidity. Furthermore, settlement times are being shortened and improved. These steps are also necessary to prepare Vietnam for the long-anticipated MSCI upgrade at a later stage.
e-fundresearch.com: What short- to medium-term effects do you expect on capital inflows and valuation levels in the Vietnamese equity market?
Mario Timpanaro: In the short term, we expect limited effects since much of it has already been priced in and valuations are already demanding. With an FTSE weighting of around 0.3–0.4%, we estimate passive inflows in the range of USD 0.8–1.2 billion. Active flows could exceed this. In the medium term, a new source of capital opens up — an important factor given Vietnam’s ambitious GDP targets. Additional capital will fuel the companies’ growth engines (expansion, investments). Moreover, Vietnam’s relevance in benchmarks increases; it will no longer be a market international institutions can ignore.
e-fundresearch.com: How are you positioning the Lumen Vietnam Fund in light of the upgrade? Are you planning adjustments in sector or stock selection?
Mario Timpanaro: We expect strong domestic participation in 2025 — with average daily trading volumes often between USD 1.2–1.8 billion. Prior to the upgrade, we had overweighted large caps since the beginning of the year and recently reduced them. Our positioning remains selective: quality large caps in core positions, complemented by high-growth mid caps where we see stronger momentum. Top-down for the broader picture and bottom-up for stock or sector selection, combined with technical analysis. Our focus is clearly on earnings quality, liquidity, and corporate governance. We are on the ground in Ho Chi Minh City with a 12-member analyst team that is well trained and highly networked — a clear advantage for our investors.
e-fundresearch.com: Aside from the upgrade — how would you describe the year 2025 so far for the Vietnamese equity market overall, and for your fund in particular?
Mario Timpanaro: 2025 has been volatile: we used correction phases with a high cash ratio to selectively increase positions in high-quality stocks at attractive valuations. Initially, the fund benefited from a large-cap tilt; we realized some gains since we expect broader market rotation. As of October 16, 2025, the Lumen Vietnam Fund is up +19% year-to-date (YTD). Should the Fed cut rates later this year, that would provide a tailwind for growth markets like Vietnam — fundamentally, we continue to view the risk/reward profile as highly attractive.
Vietnam’s macroeconomic position remains solid: public debt stands at around 35% of GDP, below the level of many comparable countries. Reform momentum is accelerating mid-term. Foreign direct investment (FDI) remains robust despite tariffs. At the same time, domestic consumption is clearly increasing and supporting growth. Extensive infrastructure projects are improving efficiency and productivity from a low base — making a measurable contribution to GDP.
We manage the fund without a benchmark; accordingly, our allocation differs from the index. Key investment themes include industrialization, urbanization, domestic consumption, and financials — with a selective focus on earnings quality, liquidity, and governance.
e-fundresearch.com: Thank you very much for the interview and continued success, Mr. Timpanaro!
About Mario Timpanaro:
Mario Timpanaro joined AQUIS Capital in July 2020 and has led the Emerging Markets team since then. Previously, he played a key role in the launch and management of the successful Lumen Vietnam Fund at Vogt Asset Management AG and CBR Investment AG. Under his leadership, the fund became the world’s first Vietnam-focused equity long-only fund to receive the UCITS label in 2013, paving the way for ESG investments in the region. Mario began his financial career in 1987 at Bank Julius Baer and later specialized in derivatives and technical analysis.
Vietnam presents itself as a fast-growing hub in Asia: a young demographic, rising wages and rapid productivity growth, massive direct investment, and the relocation of global supply chains are fueling industry, domestic consumption, and a modernizing capital market infrastructure. Mario Timpanaro explains how AQUIS Capital translates these structural growth drivers into focused investments with on-site research and a consistently active approach.
Vietnam is noticeably moving into the spotlight: The economy is growing strongly, international corporations are expanding their production there – and with the new stock exchange system (KRX) in operation since May 5, 2025, the market appears more modern and fluid than before. At the same time, index providers like FTSE and MSCI are taking a closer look, which promises additional tailwind. In this context, we speak with Mario Timpanaro of AQUIS Capital about opportunities, valuations, and the next growth drivers.
AQUIS Capital, an independent asset management firm based in Zurich, has been relying for years on close market access to Ho Chi Minh City, combining hard fundamentals with disciplined entry and exit management, and investing in Vietnam's key themes such as industrialization, urbanization, domestic consumption, and the financial sector. The in-house Lumen Vietnam Fund is structured as a UCITS and has demonstrated impressive performance since its launch. In short: an active approach with clear local expertise for a country that is currently taking the next leap in development.
Mario Timpanaro:
Southeast Asia is currently the fastest-growing region in the world. Vietnam stands out in particular:GDP growth reached 7.6% in the first half of 2025.The shift of global supply chains out of China is in full swing – the pandemic has accelerated this process, and Donald Trump's two terms in office have further fueled it.
Almost all major multinational companies now have a production facility in Vietnam or have concrete plans to relocate capacity there. This is also reflected in foreign direct investment, which reached a new all-time high in the first eight months of this year.
For equity investors, the valuation level (P/E ratio) remains attractive because fundamentals and market technicals are moving in the same direction.
On the macro side, solid growth forecasts suggest that earnings in the banking sector, consumer goods and real estate can continue to rise.
At the same time, market infrastructure has made quantum leaps in recent years. The new KRX trading system has been in operation since May 5, 2025, with noticeable effects on settlement, efficiency, and market scalability. For active managers, this combination measurably improves investability—not just as a narrative, but as visible in higher liquidity, greater turnover, and more reliable processes.
The new trading system has a capacity of USD 5 billion in trading volume per day; current daily turnover is around USD 1.5 billion. This development is crucial for the planned upgrade by MSCI, which is expected to generate significant capital inflows.
In short,the combination of macroeconomic growth and microstructural improvement creates an exceptionally favorable environment for active investors.
Mario Timpanaro:
We see two independent but complementary revenue streams—precisely what makes Vietnam so exciting at the moment. They run along two lines:
From outside to inside:
The ongoingrelocation of global supply chainsis attracting more and more technology and industrial sectors to Vietnam. The country is rapidly moving up the value chain and developing into a preferred location for products with a higher level of vertical integration. This increases the share of local productivity, further enhancing the attractiveness of the location and making a significant contribution to GDP growth.
From inside to outside:
Agrowing middle classsupports domestic consumption – it already accounts foraround 55% of GDP, one of the highest levels in Southeast Asia. At the same time, digitalization is gaining momentum in the private sector: For example, purchase orders on the stock exchange can now be conveniently placed via smartphone. The government has recognized digitalization as an important source of efficiency and plans to consistently expand this process to the administrative level. The planned reduction of the number of provinces from 63 to 34 is a significant step in this regard and a clear signal of the direction of travel.
Mario Timpanaro:
It's important to distinguish between the FTSE and MSCI. FTSE Russell has had Vietnam on its watchlist for a move from frontier to emerging markets since 2018. We expect the announcement in October and implementation no earlier than the first quarter of next year, 2026, and no later than September 2026.
MSCI is known to remain methodologically stricter – its primary concern is the equal treatment of foreign investors and domestic investors. The government must pave the way here, for example, by introducing so-called "non-voting shares" or similar systems. We expect this to be readyin the next two to three years. Therefore, it was all the more important to have already successfully introduced the new trading system on the stock exchange.
Mario Timpanaro:
Our independence and consistency in the investment process. We rely on our highly qualifiedteam of analysts based in Ho Chi Minh Cityfor fundamental analysis . It's amix of fundamental and chart analysis, which we use to ensure the perfect timing for entering and exiting positions in the Lumen Vietnam Fund.
We were also the first to introduce sustainability into the investment process (2013), thus complying with Article 8 of the EU regulation. Furthermore, we were one of the first fund managers to receive the UCITS label, which represents another milestone for us.
These two criteria make it all the more challenging, yet also profitable, to structure a portfolio over the long term. Ourpriority is always to strike the right balance between risk and reward, which we have achieved extremely well in recent years.
In times of high volatility, it is a MUST to actively manage the portfolio; this is the only way to generate significant added value for our investors.
Mario Timpanaro:
Since we don't have a benchmark, our portfolio allocation differs from the index. Our investment themes are, in brief, industrialization, urbanization, domestic consumption, and the financial sector.
Specifically, we are involved in the following sectors according to the following criteria:
We invest in retail banks and insurance companies that benefit from thegrowing lending and pension market. In the industrial and infrastructure sector, our focus is onenergy, transportation, logistics, and construction—the cornerstones of industrial expansion in Vietnam.
The megatrend of urbanization is reflected in investments inaffordable housing, shopping centers, and service sectors, which are directly supported by rising middle-class incomes.
Another focus is on industrial parks, which benefit greatly from foreign direct investment and are a key component of the global supply chain shift to Vietnam. In the technology sector, we focus on companies that increase efficiency and productivity – for example, in the areas of digitalization, automation, and financial technology.
Mario Timpanaro:
Here, I would like to highlight the strong performance of the government in Hanoi. The government's budget is very healthy, and thedebt-to-GDP ratio is only 35%.
This gives the government sufficient flexibility to invest in the country's reforms. This benefits not only the population, but also the economy and the rapidly growing tourism sector, which currently accounts forabout 8-9 percent of gross domestic product.
The Vietnamese government's growth target of 8-10 percent by 2030 is certainly very ambitious, but certainly achievable.
Furthermore, the government has successfully concluded new and significant trade agreements with numerous countries in recent years through its so-called "Bamboo Strategy." At the same time, we are experiencing a revival of domestic consumption, which is providing additional momentum for the economy.
Mario Timpanaro:
Vietnam offers an excellent opportunity, especially for investors seeking new investment opportunities for diversification reasons – as confirmed, for example, by the correlation with the Euro Stoxx, which is just 0.28%.
Furthermore, the valuations in the Lumen Vietnam Fund for 2026 are also moderate at a factor of around 11.8 times with an EPS of around 17%.
The fund offers daily liquidity and can be subscribed for in various currency tranches. The euro tranche is hedged against the US dollar with a three-month swap. Since its launch in 2012, the actively managed fund has generated anaverage return of 10.26% (USD retail tranche as of September 30, 2025). We are confident that we can continue to build on this success.
Electronics and High-Tech Instead of Textiles – Vietnam’s Economy Is Increasingly Focused on Complex Value Creation, Says Mario Timpanaro. The Fund Manager of the Lumen Vietnam Fund at Aquis Capital Talks About the Ambitious Reform Program, Potential Risks, and the Advantages of Trump’s Tariff Policy.
Mr. Timpanaro, Vietnam is considered a country on the rise. What is happening specifically?
Mario Timpanaro: We are currently experiencing the next stage of Doi Moi – a paradigm shift. In 1986, the focus was on opening up to entrepreneurship. Today, it is about efficiency and productivity. Three things are central: First, industry is increasingly relocating to Vietnam. In northern Vietnam around Hải Phòng and in the south around Ho Chi Minh City, new clusters for electronics and component manufacturing are emerging. Second, the government is accelerating major projects in infrastructure, ports, and energy supply. This lowers costs and increases competitiveness. Third, domestic consumption is growing at double-digit rates. Modern retail, e-commerce, and tourism are developing an entirely new dynamic.
Which sectors are driving the economy?
Timpanaro: Vietnam has long since diversified beyond the classic “textile-shoe path.” Today, electronics and high-tech account for a growing share – now over a quarter of GDP. In addition, banks, insurance, logistics, infrastructure, IT services, and fintech are contributing. Textiles remain important for employment, but the direction is clear: more value creation, less reliance on low labor costs.
What makes Vietnam attractive for investors?
Timpanaro: For the Lumen Vietnam Fund, we look at three factors: structural growth, reform dynamics, and geopolitical relevance. The country has a young, well-educated population, benefits from the “China-Plus-One” trend, and remains fiscally disciplined. Government debt is at 35 percent of GDP, a low level compared with global debt dynamics. For investors, this means: Vietnam is no longer just a frontier market but an emerging market with a broad, investable universe of listed companies, high returns on capital, and improved governance.
Where are the risks?
Timpanaro: Difficulties lie in implementation and energy supply. Reforms must continue consistently, and the electricity supply must keep pace with growth. Externally, weak demand and tariffs are a burden. The interconnection between real estate and banks also remains a potential risk factor. For investors, this means: balance sheet quality, cash flows, and transparency are decisive. At Lumen Vietnam, we have a competent, experienced, and local analyst team that monitors companies closely on the ground. This gives us a clear advantage in a still inefficient market.
Vietnam has not been spared from Trump’s tariffs. Curse or blessing?
Timpanaro: In the short term, tariffs are a margin headwind in tariff-sensitive segments. Compared with some regional competitors, however, Vietnam is in a better position. The agreed tariff rate of 20 percent is manageable. Companies can enforce their prices better through diversified supply chains, higher quality, and more reliable delivery times. Overall, tariff policy has accelerated the diversification of production to Vietnam and, in the medium to long term, is more of a catalyst than a brake, despite short-term volatility.
In September, FTSE Russell may upgrade Vietnam to “emerging market.” What would that mean?
Timpanaro: One must not compare the dimension with an MSCI inclusion. The capital inflows will be modest. But the symbolic power is significant. It is a clear signal that Vietnam can no longer be ignored by international investors. Passive money will flow in, but more interesting is that active managers will have Vietnam more firmly on their radar. What remains decisive is that the fundamental story holds – and it does: growth, reforms, demographics, and a growing number of investable companies. The fact that our Lumen Vietnam Fund has risen significantly more this year than most other emerging markets, which are also in a bull market, underlines this dynamic impressively.
Source: https://www.dasinvestment.com/vietnam-zuendet-eine-weitere-stufe-von-doi-moi/
Vietnam continues its reform course Doi Moi with determination and offers equity investors a broad universe of high-return companies. A conversation with Mario Timpanaro, fund manager of the Lumen Vietnam Fund at Aquis, about the country’s progress, potential risks, and Vietnam’s upgrade to an emerging market.
Mr. Timpanaro, Vietnam is considered a country on the rise. What is happening specifically?
Mario Timpanaro: We are currently experiencing the next stage of Doi Moi – a paradigm shift. In 1986, the focus was on opening up to entrepreneurship. Today, the focus is on efficiency and productivity. Three things are central: First, industry is increasingly relocating to Vietnam. In northern Vietnam around Hải Phòng and in the south around Ho Chi Minh City, new clusters for electronics and component manufacturing are emerging. Second, the government is accelerating major projects in infrastructure, ports, and energy supply. This lowers costs and boosts competitiveness. Third, domestic consumption is growing at double-digit rates. Modern retail, e-commerce, and tourism are developing an entirely new dynamic.
Which sectors are driving the economy?
Timpanaro: Vietnam has long since diversified beyond the classic “textile-shoe path.” Today, electronics and high-tech account for a growing share – now over a quarter of GDP. In addition, banks, insurance, logistics, infrastructure, IT services, and fintech are contributing. Textiles remain important for employment, but the direction is clear: more value creation, less dependence on low labor costs.
What makes Vietnam attractive for investors?
Timpanaro: For the Lumen Vietnam Fund, we look at three factors: structural growth, reform dynamics, and geopolitical relevance. The country has a young, well-educated population, benefits from the “China-Plus-One” trend, and remains fiscally disciplined. Government debt stands at 35 percent of GDP, a low level compared to global debt dynamics. For investors, this means: Vietnam is no longer just a frontier market but an emerging market with a broad, investable universe of listed companies, high returns on capital, and improved governance.
Where are the risks?
Timpanaro: Challenges lie in implementation and energy supply. Reforms must continue consistently, and electricity supply must keep pace with growth. Externally, weak demand and tariffs are a burden. The interconnection between real estate and banks also remains a potential risk factor. For investors, this means: balance sheet quality, cash flows, and transparency are decisive. At Lumen Vietnam, we have a competent, experienced, and local analyst team that monitors companies closely on the ground. This gives us a clear advantage in a still inefficient market.
Vietnam has not been spared from Trump’s tariffs. Curse or blessing?
Timpanaro: In the short term, tariffs are a margin headwind in tariff-sensitive segments. Compared with some regional competitors, however, Vietnam is in a better position. The agreed tariff rate of 20 percent is manageable. Companies can better enforce their prices through diversified supply chains, higher quality, and more reliable delivery times. Overall, tariff policy has accelerated the diversification of production to Vietnam and, in the medium to long term, is more of a catalyst than a brake, despite short-term volatility.
In September, FTSE Russell may upgrade Vietnam to “emerging market.” What would that mean?
Timpanaro: One must not compare the dimension with an MSCI inclusion. The capital inflows will be modest. But the symbolic power is significant. It is a clear signal that Vietnam can no longer be ignored by international investors. Passive money will flow in, but more interesting is that active managers will have Vietnam more firmly on their radar. What remains decisive is that the fundamental story holds – and it does: growth, reforms, demographics, and a growing number of investable companies. The fact that our Lumen Vietnam Fund has risen significantly more this year than most other emerging markets, which are also in a bull market, underlines this dynamic impressively.
Source: https://www.private-banking-magazin.de/von-der-werkbank-zum-hightech-standort/
Infrastructure, Innovation and Investment: Vietnam is Becoming Increasingly Attractive to Investors
With ambitious growth targets and multi-billion dollar investments, Vietnam is positioning itself as Asia’s new economic engine, says Mario Timpanaro, Portfolio Manager of the Lumen Vietnam Fund.
Mr. Timpanaro, the Vietnamese government has raised its GDP forecast for 2025 to 8 percent. Is that realistic?
Mario Timpanaro: The growth target is ambitious, but certainly achievable—especially in light of the government’s strong push for infrastructure investment. The authorities have shown determination to accelerate infrastructure development to fully unlock the country’s growth potential. We believe these investments could contribute between 1 and 1.5 percentage points to GDP over the next few years.
This includes the expansion of Terminal 3 at the central airport in Ho Chi Minh City—scheduled to open on April 5—as well as the new airport south of the city, expected to be completed in the first half of 2026. Additionally, nine new metro lines are planned, with the first line successfully commissioned at the end of 2024. A major city cannot thrive without a well-functioning metro system. The highway network is also being expanded with significant effort, which will ultimately benefit both logistics and tourism. On top of that, a major high-speed rail project is underway to connect the capital Hanoi with the economic center Ho Chi Minh City—an investment of USD 67 billion, expected to be completed by 2035.
During your last visit, optimism regarding domestic growth seemed to lag behind market expectations. What is needed to reverse this trend?
Timpanaro: We’re noticing that people are saving more. While new car registrations rose slightly by 2.6 percent last year, there is still a degree of restraint when it comes to purchasing durable goods. Sales of electronic components are also lagging behind expectations, although exports of these goods have increased significantly. This cautious sentiment is reflected in the PMI index, which has remained below the 50-point threshold for the past three months—49.2 in February. Domestic consumption contributes a significant 55 percent to GDP.
A very positive economic development is the recovery of tourism: overnight stays increased by 30 percent in the first two months of 2025. In addition to visitors from Southeast Asia, we are seeing strong demand from Europe—particularly from Germany. Tourism already accounts for approximately 8 percent of GDP.
In addition to the traditional manufacturing sector, Vietnam seems to be making inroads into advanced industries such as semiconductors and AI. How do you view this development?
Timpanaro: It’s an extremely exciting trend. Vietnam has not only established itself as a manufacturing hub, but is also gaining prominence in advanced industries such as semiconductor production and artificial intelligence. Major tech companies including Samsung, Intel, LG, Apple, and Google have built production facilities in Vietnam. This reflects not only the country’s competitiveness but also its growing capacity for innovation. Particularly noteworthy is Nvidia’s establishment of an AI research center in Hanoi—reinforcing Vietnam’s ambition to become a leading AI hub in Southeast Asia.
Despite the optimism, concerns remain around tariffs and trade policy. How is the government addressing these issues?
Timpanaro: While U.S. tariffs are creating uncertainty globally, Vietnam remains relatively calm—partly because it brings strong bargaining chips to the negotiating table, including potential offsetting deals worth several billion USD. With its so-called “bamboo diplomacy”—flexible yet firm—the Vietnamese government is skillfully navigating geopolitical tensions. Compared to direct competitors such as China, tariffs on Vietnamese exports remain relatively low.
How important is Vietnam for investors in the Asian region?
Timpanaro: Vietnam currently offers one of the most compelling investment opportunities in Asia, especially considering its robust economic growth and impressive recovery in corporate earnings. For the Lumen Vietnam Fund, we anticipate earnings growth of 17 percent per share, with a price-to-earnings ratio of just 11.9. GDP growth is expected to reach 7 percent this year—something Europe can only dream of. Vietnam provides strong diversification for any portfolio, as its correlation with most major global indices is very low.
What is your assessment of the Vietnamese stock market?
Timpanaro: We’re seeing domestic investors return to the market. Average daily trading volume is around USD 800 to 900 million. After a prolonged sideways movement between 1,260 and 1,300 points, the market has recently broken upward. Several factors are driving this: one is the launch of the new KRX trading system, which enables intraday trading and is expected to boost liquidity. A more significant catalyst is the anticipated upgrade of Vietnam to emerging market status by FTSE in September 2025, which will bring renewed momentum. A reclassification by MSCI is expected within the next one to two years and would provide a much larger boost to the Vietnamese equity market.
How stable is the government in Hanoi, and what is it doing to attract international investors?
Timpanaro: The government is very stable. On the one hand, it is taking the necessary steps to ensure rising prosperity in this emerging country—an effort that is being positively received by the population. On the other hand, it is earning credibility and building transparency with international partners. Whether through infrastructure, innovation, or ambitious investments—Vietnam is becoming increasingly attractive to investors. It is therefore not surprising that foreign direct investment has performed so well: in 2024, a record USD 25.35 billion flowed into the country. Whereas in the past, international companies were the ones relocating production from China to Vietnam, we are now seeing—already since Q4 2024—Chinese companies following this trend as well, out of concern about U.S. tariffs. We expect this trend to continue for the next few years before any consolidation may occur.
Vietnam: Between Superpowers
Vietnam finds itself at the center of the trade conflict between the United States and China. Vietnamese equities are historically undervalued. Over a five-year horizon, active funds have outperformed passive strategies.
It is no easy task for To Lam, Vietnam’s de facto top political leader as General Secretary of the Communist Party, to navigate between the two global powers—the U.S. and China. The Southeast Asian nation has not been spared from the tough stance of the U.S. President: Donald Trump imposed tariffs of up to 46 percent on Vietnamese imports. Lam responded swiftly, given that the United States is one of the country’s most important export destinations.
Just a few days later, he held a phone call with Trump and proposed, among other things, a reciprocal reduction in tariffs from the Vietnamese side. A document from the Ministry of Industry and Trade now reportedly confirms that Vietnam intends to take action against illegal transshipment of goods into the United States. While the tariffs are currently on hold, Trump’s 90-day suspension expires in early July.
On the other side of the conflict stands China—Vietnam’s second major trading partner. In a recent meeting with Chinese President Xi Jinping, the two nations signed numerous bilateral cooperation agreements, thereby deepening their trade relations.
Xi explicitly called for stronger supply chains between the two countries. “Vietnam’s foreign policy, which aims to remain open to all sides—including the U.S. and China—is being put to the test,” summarizes Ulrich Stephan, Chief Investment Strategist at Deutsche Bank.
Strong Ambitions Amid Fragile Balance
And yet things had been going so well. Vietnam, which is still classified as a frontier market—one tier below emerging markets—aims to become an industrialized nation by 2045. The government wants to reduce bureaucracy and create more space for investment.
The official growth target for 2025 is eight percent, after the country already achieved seven percent in 2024. The World Bank is slightly more cautious in its forecast, projecting growth of 6.8 percent in 2025 and 6.45 percent in 2026. “These strong growth prospects are primarily driven by demand and exports in the technology sector,” explains Stephan. “In addition, Vietnam is rated positively as a destination for foreign investment. It could outpace other Asian neighbors in growth thanks to a combination of exports, investment, and robust domestic consumption.”
Now it is up to General Secretary Lam to walk the tightrope between the two superpowers. Should he succeed, Vietnam might even benefit from the tariff dispute, as more countries could look to diversify their supply chains and include Vietnam. However, if he fails, there could be significant economic consequences: exports to the U.S. account for roughly 30 percent of Vietnam’s GDP.
Investor Uncertainty and Valuation Gaps
This uncertainty is also reflected in the stock market. The MSCI Vietnam Index—which tracks the 63 largest Vietnamese companies—is currently trading nearly 20 percent below its 10-year valuation average.
“Indices are reacting to global concerns around tariffs, even though the largest Vietnamese companies are not in the tech sector but in more traditional industries like steel, real estate development, banking, and food,” explains Stephan. Based on historical price-to-earnings ratios, the MSCI Vietnam Index still appears ambitiously valued, posting a P/E ratio of nearly 18 as of the end of March.
Limited Retail Access—But Strong Fund Alternatives
It remains difficult for retail investors to trade Vietnamese stocks directly. Most brokers do not offer access to the Ho Chi Minh Stock Exchange (HOSE), and individual stocks from frontier markets are considered high-risk. Investment funds provide a much easier and more diversified entry point.
One of the largest and most well-known actively managed options is the Lumen Vietnam Fund from Swiss investment firm Aquis Capital. With USD 348 million in assets under management, it is one of the heavyweights in the space and has been active since its inception in 2012.
Over this period, the fund has delivered an annualized return of 9.5 percent (as of March 31). Even more impressively, the five-year average annual return stands at 18 percent. However, this comes at a cost: a front-end load of up to 3 percent and ongoing charges of 2.45 percent make it one of the more expensive options.
A slightly more affordable option is the Galileo Vietnam Fund from Luxembourg-based asset manager IP Concept. While the ongoing charges are around 2 percent, the fund is much smaller in scale, with approximately USD 86 million in assets. In terms of performance, it also lags behind, posting an annualized five-year return of 14 percent.
For those seeking a passive alternative, there is the Xtrackers FTSE Vietnam Swap ETF, which synthetically replicates the FTSE Vietnam Index. With a total expense ratio of just 0.85 percent, it is significantly cheaper than the active funds and manages around USD 265 million in assets—positioned between the two active strategies.
However, its performance has disappointed: over the past five years, the ETF has posted an average annual loss of 1.2 percent. It appears that active management continues to provide real added value—particularly in less liquid markets such as Vietnam.
Vietnam is becoming an increasingly popular destination for foreign investors. Robust economic growth, a growing middle class with rising consumer spending, and an increasing number of promising listed companies are making the country more attractive for equity investors as well.
In Vietnam’s capital Hanoi, the metro has been running for three years—and just before Christmas 2024, the first metro line also launched in the country's economic center, Ho Chi Minh City. Six more lines are planned. Not far from the metropolis, a new international airport is also under construction. The Vietnamese government is vigorously pushing forward with infrastructure development. “In 2025, it plans to increase infrastructure spending by 70 percent. That could boost economic growth by 1 to 1.5 percentage points,” says Mario Timpanaro, manager of the Lumen Vietnam Fund. In addition to state investment, he sees other drivers supporting the Vietnamese stock market this year and beyond.
The economy grew by 7.06 percent in 2024, and expectations for the coming years range between 7 and 8 percent. “In addition, rising consumer demand and continued inflows of foreign direct investment will provide strong economic momentum,” Timpanaro says.
Vietnam is home to nearly 100 million people, with an average age of just under 33. The middle class is expanding and spending—domestic consumption accounts for around 55 percent of GDP. “After the pandemic, the government implemented numerous measures that have increased prosperity. People have more money in their wallets, which benefits domestic consumption. This trend will continue,” says the fund manager. A growing number of internet users and improved logistics are also fueling rapid growth in e-commerce.
China+1 and Bamboo Strategy Supporting Growth
Industrialization is progressing strongly thanks to rising foreign direct investment, which reached an impressive USD 25.3 billion in 2024. “The government is now implementing reforms more swiftly than in the past, attracting new investors,” explains Timpanaro. Vietnam is benefiting from the China+1 strategy pursued by many international companies seeking to diversify production due to cost and risk factors. Since the start of the U.S.-China trade war, which may escalate again with the change in U.S. leadership, Chinese companies are also increasingly investing in Vietnam.
While the U.S. trade deficit with Vietnam remains large, proactive steps have been taken to reduce the surplus. For example, Vietnamese airlines have ordered aircraft from Boeing, and LNG purchases from the U.S. (USD 3 billion) are set to increase. Vietnam benefits from its so-called “bamboo strategy”—firmly rooted but highly flexible—allowing the country to remain open to all potential partners.
The positive growth outlook leaves Timpanaro optimistic about the long-term performance of Vietnamese equities: “The country is only at the beginning of a long journey and remains highly attractive for equity investors.” He also highlights the attractive valuation relative to other Asian equity markets. “We believe the valuation gap will narrow as Vietnamese equities outperform,” he says.
Around 1,600 companies are listed on the Ho Chi Minh City (HOSE), Hanoi (HNX), and UPCOM stock exchanges. Market capitalization and liquidity on Vietnamese exchanges have increased significantly in recent years, even surpassing other emerging markets. Nevertheless, index providers still classify Vietnam as a frontier market. Timpanaro expects an upgrade by FTSE this year; MSCI may take another one to two years.
Interview with Mario Timpanaro, AQUIS Capital
"Our fund offers access to a fascinating growth market and proven portfolio diversification."
Mario Timpanaro, co-founder and portfolio manager of the Lumen Vietnam Fund, discusses the opportunities in Vietnamese equities, the country's expected upgrade to emerging market status, and the benefits of investing in small and mid-cap companies.
Mr. Timpanaro, the MSCI Vietnam and FTSE Vietnam indices have yet to recover from their sharp 2022 downturn, but the Lumen Vietnam Fund has already bounced back. How did you achieve this?
Timpanaro: One of the key success factors is a disciplined approach combining fundamental analysis and technical charting. Our performance is based on an active, fundamental investment strategy that enables us to selectively invest in undervalued companies with strong growth potential. The secret is stock picking, which wouldn’t be possible without our twelve-member team on the ground in Ho Chi Minh City.
Your fund focuses on small and mid caps. Why do you prefer smaller companies?
Timpanaro: In every country, small and mid-sized companies are the backbone of the economy—and Vietnam is no exception. They are dynamic and generally more profitable than large caps. Our well-trained analyst team is able to identify these gems early, before they appear on the broader market’s radar.
Which sectors are you currently investing in? Where are you cautious?
Timpanaro: We find sectors like energy, technology, consumer goods, insurance, and banking particularly attractive. For financial institutions, we pay close attention to price-to-book ratios and non-performing loan levels. We are more cautious with residential real estate, especially when it comes to heavily indebted companies.
With approximately USD 350 million in assets, the fund has grown significantly. Can the investment universe accommodate further growth?
Timpanaro: Yes, Vietnam's equity universe still offers sufficient potential for further expansion. The market continues to grow, and the ongoing liberalization for foreign investors is opening up new opportunities. Our active strategy allows us to target growth areas while maintaining flexibility. We also expect several IPOs this year.
How dependent are Vietnam’s economy and stock market on developments in China?
Timpanaro: China, as Vietnam’s second-largest trading partner, plays a key role, especially as a supplier of critical raw materials and components. However, Vietnam has reduced its dependency by diversifying trade relationships and signing free trade agreements with major countries and blocs. Thanks to its bamboo strategy, the country has gained autonomy and resilience.
How relevant is the Vietnamese currency for euro-based investors? What impact has it had historically on performance?
Timpanaro: The Vietnamese dong has been relatively stable against the U.S. dollar in recent years. One reason is the low national debt—only 38 percent of GDP. For euro investors, exchange rates are important, as a weakening dong could reduce returns. The dong has benefited from steady capital inflows and a strong trade balance. The U.S. dollar has strengthened against both the euro and the dong, largely due to interest rate differentials, which also raise hedging costs and weigh on net returns.
Vietnam is still classified as a frontier market. What does it need to achieve emerging market status, and when do you expect the upgrade?
Timpanaro: The main obstacle is ensuring equal treatment for foreign and domestic investors. There are several potential approaches, and it remains to be seen which one the government in Hanoi will choose. Last year, we observed that key reforms—long delayed—were suddenly advanced with renewed urgency. We expect FTSE to upgrade Vietnam to emerging market status by September 2025. MSCI may take until 2027 or 2028.
Why should investors consider Vietnamese equities—and particularly the Lumen Vietnam Fund—now?
Timpanaro: Vietnam is in a unique position: stable economic growth, a dynamic domestic market that contributes 55 percent to GDP, integration into global value chains, and a strong commitment to sustainable development. The Lumen Vietnam Fund offers targeted access to one of the world’s most exciting growth markets, combining attractive return potential with a long-term ESG perspective.
Fund Portrait
In Search of Diversification and Opportunity: Vietnam
For over ten years, the Lumen Vietnam Fund has provided investors with access to the Vietnamese equity market of this fast-growing Asian economy. Its success is driven by a strong local team and a long-standing ESG focus.
More than a decade ago, Mario Timpanaro recognized the enormous potential of the Vietnamese equity market. At the time, Vietnam was facing challenges and was largely overlooked by investors. In his view, share prices did not reflect the country’s underlying potential. In 2012, he co-launched the Lumen Vietnam Fund—the first actively managed UCITS fund focused solely on publicly listed Vietnamese equities. He still manages the fund today, now under the umbrella of Swiss boutique AQUIS Capital in Zurich.
He is not alone in managing the now USD 350 million fund. Since 2013, he has been supported by a team based in Ho Chi Minh City at Vietnam Holding Asset Management (VNHAM). “Our twelve-person team analyzes companies, meets with management, and visits production sites,” Timpanaro explains. He himself travels to the country five to six times per year. Vietnam is his second home, and the VNHAM team is his second family.
On-the-ground expertise is critical for the fund. The strategy focuses on small and mid-cap companies, which Timpanaro sees as having the highest growth momentum. Large-cap names are added tactically. The analyst team aims to identify hidden gems early—before they become expensive. Fundamental analysis is supplemented by technical screening.
Strong Governance as Key to Sustainable Growth
The selection criteria are strict: out of around 1,600 listed companies, only about 100 make it into the fund’s investable universe. Financial filters aren’t the only factor. As an Article 8 fund under SFDR, ESG criteria have been central to the Lumen Vietnam Fund since 2013—even when that approach was initially met with skepticism. “Our primary focus is on the 'G'—governance. Good corporate governance is the key to sustainable growth, stable capital markets, and long-term success,” says Timpanaro. Especially in emerging markets like Vietnam, transparency, shareholder rights, and ethical business practices are critical to gaining investor trust and ensuring economic resilience. “Companies with sustainable business models tend to be more resilient and better prepared for future challenges. Our ESG focus is both an ethical and strategic decision,” he emphasizes.
The fund holds 30 to 40 stocks. Financials (retail banking) currently account for about 30 percent of the portfolio. Consumer staples and industrial real estate (industrial parks) make up another 27 percent. Major holdings (each weighted over 5 percent) include tech firm FPT and Saigon Thuong Tin CJS Bank (as of end-January 2025). The active management combined with a unique strategy has paid off: since launch, the fund has achieved an annualized return of nearly 10 percent in USD—with relatively low correlation to the MSCI World, MSCI Emerging Markets, or EURO STOXX.
AQUIS Capital
Active Asset Management
AQUIS aims to be a leading specialist in active asset management, with a focus on alternative investments and emerging Asia.
Client-Centric Philosophy
We take time to understand our clients’ needs and translate them into tailored solutions. Our passion for what we do is reflected in our work with clients.
Sustainability Matters
UNPRI Social Development Goals (SDGs) and ESG principles are fully integrated into our investment process.
Independence
100% independent, entrepreneurially minded, and focused on delivering long-term, customized investment solutions. Our team is highly motivated to strike the right balance between risk and opportunity.
Lumen Vietnam Fund
Source: https://www.private-banking-magazin.de/vietnam-faszination-und-diversifikation/
Vietnam remains in the spotlight of international investors—but how is the market developing amid global interest rate shifts? Mario Timpanaro, expert in the Vietnamese equity market, shares exclusive insights into the opportunities and challenges of this emerging economy at the Private Banking Congress.
Watch on YouTube
Source: https://www.private-banking-magazin.de/vietnam-fondsmanager-timpanaro-vietnam-ist-viel-konservativer/
Mario Timpanaro, the expert behind the Lumen Vietnam Fund by AQUIS Capital, discusses the importance of diversification in today’s market, the potential benefits of Vietnamese equities in times of geopolitical uncertainty, and the unique characteristics of his fund. He also shares a preview of the upcoming e-fundresearch.com Fonds-Dialog Roadshow in Austria and his latest insights from a recent research trip to Vietnam.
Source: https://e-fundresearch.com/managers/artikel/51340-aquis-fondsmanager-timpanaro-vietnam-ist-ein-bisschen-die-schweiz-von-asien
Vietnam is a large consumer market with a stable government system and many structural advantages compared to other countries in the region. Vietnam is also currently benefiting from catch-up effects and a pending reclassification as an emerging market. AQUIS Capital summarizes the key reasons for investing in the Southeast Asian country.
With around 98 million inhabitants, Vietnam has significant market potential and an established class of consumers. 8.8 million Vietnamese households already have an annual income of USD 10,000 or more. The Southeast Asian country quickly recovered from the effects of the pandemic. Domestic traffic already returned to pre-pandemic levels in 2022, while international tourism also rebounded rapidly.
Exports and manufacturing are also gaining momentum again, which will further boost the country's economy and consumption. A stable and friendly government policy toward foreign direct investment, a young labor force, a competitive cost structure, and proximity to the People's Republic of China are major competitive advantages. In addition, key reforms in the energy, banking, and real estate sectors support Vietnam's solid economic position.
AQUIS Capital analysts see great potential for the Vietnamese market in the coming years based on three key factors:
Opportunity Factor 1: Attractive Valuations
Compared to other Asian countries and globally, Vietnam offers low stock market valuations. Based on earnings per share, Vietnamese stock markets still trade at a discount to other countries in the Southeast Asian region. “We believe this gap will narrow due to the outperformance of the Vietnamese market,” says Mario Timpanaro, fund manager of the Lumen Vietnam UCITS Fund.
Opportunity Factor 2: Macro Growth, China-Plus-One, and Stable Currency
Vietnam continues to demonstrate impressive economic growth in Asia. Vietnam’s net inflows of foreign direct investment (FDI) posted a 10-year CAGR of 7.9%, significantly outperforming the average growth in ASEAN countries.
Over the last 15 years, Vietnam rose from the lowest position to become the second-largest exporter among ASEAN nations. Today, Vietnam is the biggest global beneficiary of supply chain relocations. The “China-Plus-One” strategy encourages investors to separate their China operations from the rest of the global supply chain to reduce dependency on the PRC. Many market leaders are shifting supply chains to Vietnam. “For example, Intel is investing USD 1.5 billion in the largest global production and testing facility in Vietnam. Lego is building its first CO2-neutral factory there for USD 1.3 billion, and Google is manufacturing smartphones in Northern Vietnam,” says Timpanaro.
Another advantage: the Vietnamese currency, the đồng, is significantly less volatile than neighboring currencies. Many of these have suffered from global turbulence driven by high inflation and U.S. interest rate hikes. Thanks to substantial dollar reserves, the đồng remained notably more stable.
Opportunity Factor 3: Upgrade to Emerging Market Status
Vietnam is expected to be upgraded from a frontier market to an emerging market by 2025 or 2026. Vietnam’s current market capitalization already exceeds that of emerging markets like Poland, Kuwait, or Pakistan. Market liquidity is also higher than in Kuwait, the Philippines, or the UAE. Notably, Vietnam’s high liquidity is mainly driven by domestic investors. Some hurdles remain, but the government is actively working to address them in the right direction.
The upcoming reclassification could trigger another market rally, driven by increased foreign investment inflows. When Saudi Arabia and Kuwait were upgraded, their markets experienced capital gains of 20% to 30%.
Purposeful Investment in Vietnam
“For us, Article 8 is not just a label, but a form of due diligence.”
Why invest in the frontier market Vietnam right now? Mario Timpanaro, portfolio manager of the Lumen Vietnam UCITS Fund, explains the significant economic potential of this Southeast Asian country.
Mr. Timpanaro, what sets Vietnam apart from other frontier markets?
Mario Timpanaro: Several facts and strong arguments explain why Vietnam is ahead of other Southeast Asian countries. First, the country enjoys political stability. Second, it has very low debt — only 39% of GDP — and strong earnings momentum among companies. Additionally, Vietnamese equities are undervalued compared to peers in the region. Vietnam has also signed important free trade agreements with major global trading blocs and nations, which benefits its economy and population by creating wealth.
How stable are the political and regulatory conditions in Vietnam?
Timpanaro: The current government, in office until spring 2026, is very stable and investor-friendly. It focuses on creating favorable conditions for foreign businesses, which explains the rising level of direct investment — USD 23 billion last year and growing. Vietnam is now the top destination for manufacturing in Southeast Asia.
You have managed the Lumen Vietnam UCITS Fund since its inception twelve years ago. How has the market changed since then?
Timpanaro: A lot has changed! On one hand, there is continued political stability. On the other, trading volume has significantly increased over the past decade. Through monetary policy, the Vietnamese government has lowered inflation from 25% to just 3.9%. GDP has grown by an average of 6.55% over the past 30 years, though this wasn’t reflected in the stock market. From 2016, Vietnam gained attention from a few innovative investors, but broader international awareness has only truly developed in the last five years.
You comply with Article 8 of the EU SFDR regulation. What are the fund’s key exclusion criteria?
Timpanaro: Listing all of them would take too long, but here are some examples of what we exclude: nuclear energy, coal, weapons, tobacco, alcohol, gambling, and deep-sea fishing. For me, ESG is essential. When investing in emerging markets, the "G" in ESG — Governance — is especially important. Governance means a company must be run independently. The CEOs and the board must demonstrate their ability to make independent decisions.
Vietnam is a leader in clean energy. From 2017 to 2021, the share of solar energy generation increased from practically zero to nearly 11%. This growth rate is faster than almost anywhere else in the world and even surpasses larger economies like France or Japan. Vietnam is also a pioneer in the "S" of ESG — social factors. It has one of the highest female labor force participation rates in the world.
How frequently do your analysts visit companies on-site?
Timpanaro: For us, it’s essential to visit companies in which we invest. That means we visit factories, meet with management and CFOs about four times a year. We want to understand working conditions and avoid investing in companies that could be at risk of scandals. This helps us avoid profit warnings. For us, Article 8 is not just a label — it’s a form of due diligence. Personally, I travel to Vietnam four to five times per year.
What is your personal outlook for the next two to three years? Which factors will be most important for Vietnam’s economic growth?
Timpanaro: I expect Vietnam to be upgraded to emerging market status within one to two years. While some hurdles remain, the government is clearly moving in the right direction. This upgrade would mean that emerging market funds would be required to include Vietnamese equities, multiplying the current daily trading volume of USD 1 billion several times over. In preparation, the capacity of the new trading system will be increased to USD 5 billion. We expect its launch on May 2, 2024.
Which sectors appear most promising?
Timpanaro: Over the coming months, we expect strong growth in the following sectors: energy, industrials, logistics, insurance, and industrial park developers. In the banking sector, we focus exclusively on institutions involved in retail banking. Vietnam is poised for significant development in the coming years. I have high confidence in the reform-minded government. In the past three years, their focus was on managing post-COVID challenges, which delayed some important reforms. But now, Vietnam is using all available tools to stimulate the economy with the right measures.
The sustainable dragon awakens!
An actively managed long-only country fund with an exciting investment universe and a sustainable orientation – the Lumen Vietnam UCITS Fund follows the principle of classic stock picking in an emerging Southeast Asian market.
Launched twelve years ago, the Lumen Vietnam UCITS Fund (ISIN: LI0334507485, WKN: A2AQSF) today manages around USD 330 million. As a total return fund, it does not follow a benchmark. The fund management team led by Mario Timpanaro, who has been active in investment management for over 40 years, primarily invests in mid-sized companies. These are not correlated with the index and more accurately reflect the booming economy of the Southeast Asian country.
The Vietnam experts at AQUIS Capital pursue a value-with-growth approach. This means combining top-down and bottom-up management in the investment process. In addition to fundamental analysis, chart analysis also plays an important role – especially essential in times of increased market volatility.
AQUIS Capital maintains a team of six highly qualified independent analysts based in Ho Chi Minh City. These experts belong 100% to AQUIS Capital in Zurich, which eliminates conflicts of interest.
“For calculating a company’s key metrics, we use our own valuation model, which we continuously refine,” says fund manager Timpanaro. The focus of stock selection lies on small- and mid-cap Vietnamese companies with tactical allocation to large caps.
These include industry leaders with high competitive barriers, strong balance sheets, and free cash flow generation. Equally important are above-average earnings growth and high-quality, independent management teams.
“We are classic stock pickers in the market,” Timpanaro says, who has managed the fund since inception.
The portfolio always contains 30 to 40 positions across five to ten growth sectors, with an investment horizon of three to five years. Currently, finance (27.3%), industry (12.7%), real estate (13%), and food (11.5%) play a significant role in the portfolio composition. Depending on the market cycle and valuation, active sector rotation is carried out.
“The ten largest individual positions in the Lumen Vietnam Fund account for only 45% of the portfolio – we are more balanced and diversified than an index. That’s why we show an asymmetric return profile,” says Mario Timpanaro. In such a specific market, substantial added value can only be generated through active management and precise portfolio construction.
Since 2013, the Lumen Vietnam UCITS Fund has also followed a sustainable investment approach (ESG). It is the first UCITS fund in Vietnam to fully integrate ESG into its investment process. The fund is also attractive as a portfolio complement: the Lumen Vietnam Fund has low correlation with indices such as the MSCI Emerging Markets, MSCI World, S&P 500, and EUROSTOXX – improving overall portfolio diversification.
Further information and up-to-date factsheets about the Lumen Vietnam UCITS Fund can be found [here].
Active Asset Management
AQUIS aims to be a leading specialist in active asset management with a focus on alternative investments and emerging Asia.
Serving client interests
We take the time to understand clients’ needs and tailor our solutions accordingly. Our passion for what we do is conveyed to our clients.
Sustainability – Our core concern
In our investment process, the UNPRI Social Development Goals (SDGs) and sustainability (ESG) are fully integrated into our thinking and actions.
Independence
100% independent, entrepreneurial, and focused – with a long-term and customized investment solution for our clients. All our employees are highly motivated and strive to always find the right balance between opportunity and risk.
Mario Timpanaro from Aquis Capital and portfolio manager of the Lumen Vietnam Fund knows the Vietnamese market inside and out. In this interview, he provides insight into the fund’s portfolio allocation and explains why Vietnam is an attractive investment opportunity for investors.
Mario Timpanaro:
"Vietnam’s growth has averaged 6.8 percent in recent years; the country could be reclassified as an emerging market by 2025."
Mr. Timpanaro, why should investors pay special attention to the Vietnamese market?
Mario Timpanaro: Among Vietnam’s over 100 million inhabitants, there are many well-educated people who work hard and are eager to improve their standard of living. 95 percent of the population is literate. The solid education of the people makes the difference compared to other economies.
Vietnam has developed very well in recent years. Initially a beneficiary of supply chain shifts, it now benefits from geopolitical developments, especially from the “China +1” strategy that many Western companies have adopted. Vietnam’s “bamboo diplomacy” – its skillful balancing between vastly different partners – is enormously beneficial to its economy. The country is politically very stable, has a very low debt-to-GDP ratio of 40 percent, operates with low inflation, and has a strong currency in the Dong.
Which sectors have performed particularly well in recent years?
Timpanaro: Vietnam’s growth has averaged 6.8 percent in recent years. We expect the country to be reclassified from a frontier to an emerging market by 2025. We value the very low correlation with EuroStoxx, S&P 500, and other major indices.
Allocation is extremely important; we allocate the capital of our fund – which, by the way, is the largest UCITS fund focused on Vietnam worldwide – with foresight. We focus on the financial sector, which we weight at 25 percent, real estate and industrial parks, non-cyclical consumer goods like dairy products, industry, and communication. We value stable returns and sustainable, long-term growth, which is also driven by upward demographic trends. We remain opportunistic to respond to emerging opportunities at any time.
What do you avoid investing in?
Timpanaro: Many emerging market funds, for example, contain cement manufacturers – but that does not align with our ESG criteria. We also sold all our positions in the manufacturing sector two years ago due to weakening global demand.
What risks exist – for example, how does Vietnam fare in terms of infrastructure, which is so important for the development of economies?
Timpanaro: The government strongly supports infrastructure projects. Whether it’s airports, seaports, or rail connections – there is rapid development happening everywhere. While the north, close to China, is already well developed, the focus is now on the south. A completely new major airport is being built 40 kilometers east of Ho Chi Minh City. The first construction phase, with a cost of USD 5.2 billion, is scheduled for completion in 2025.
To what extent is Vietnam’s economic upswing reflected in the Lumen Vietnam Fund?
Timpanaro: The historical performance of the Lumen Vietnam Fund was 26 percent in 2020, 49.6 percent in 2021, -29 percent in 2022, and 20 percent in 2023. The average annual historical return is 9.74 percent. Our investors have done very well in recent years with their investments in the quality portfolio of our Vietnam fund.
Source: https://www.private-banking-magazin.de/die-china--1-strategie-gibt-unserem-vietnam-fonds-den-turbo/
The H1 Academy in conversation with Mario Timpanaro, fund manager of the Lumen Vietnam Fund.
Dive into an engaging 30-minute discussion. Mario Timpanaro shares with the H1 Academy’s Thomas Polach his perspectives on the latest developments in the Vietnamese equity market.
Don’t miss the opportunity to deepen your understanding of the market and gain valuable insights from an expert in the field. The full video interview is available on YouTube.
Source: https://youtu.be/dm3_1nuJ6vc?si=lrvzcmnvKML5IJYS
Very few investors can point out Vietnam on a world map. Mario Timpanaro, founder of Aquis Capital and portfolio manager of the Lumen Vietnam Fund, is highly knowledgeable about Asia and especially Vietnam. The performance chart of his fund reflects this expertise. We wanted to know what makes the Vietnamese market, with its 99 million inhabitants, so interesting, which sectors are developing particularly well, and which risks investors should be aware of.
Source: https://www.private-banking-magazin.de/flughaefen-haefen-bahnhoefe-werden-auf-teufel-komm-raus-ausgebaut/?web=1&wdLOR=c84A62D8E-DCC8-45E2-B867-01AD53C73DA9
