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vietnam equity fund insights – growth, infrastructure & opportunities

Vietnam Equity Fund Insights – Growth, Infrastructure & Opportunities

Vietnam is Investing Its Way to the Top of Asia. Vietnam on the Path to Becoming an Economic Powerhouse

In 2025, Vietnam stands out as one of the most dynamic economies in Asia. With ambitious goals and multibillion-dollar infrastructure projects, the country is positioning itself as a key driver of regional growth. Mario Timpanaro, Portfolio Manager of the Lumen Vietnam Fund – one of the best-performing Vietnam equity funds – sees clear signals from the government’s policies pointing toward sustainable progress.

The GDP forecast of 8% for 2025 is ambitious but achievable. The government’s focus on strategic infrastructure measures – from the expansion of the airport terminal in Ho Chi Minh City to the planned high-speed rail line connecting Hanoi and Saigon – aims to structurally support economic growth. These investments could add between 1–1.5% to GDP annually over the coming years.

While domestic consumption remains somewhat subdued – particularly for durable goods and electronics – the tourism sector is seeing a strong rebound. Overnight stays rose by 30% in the first two months of 2025 alone, particularly driven by increasing visitors from Europe and Germany. Tourism currently contributes around 8% to GDP.

New Momentum for the Vietnamese Stock Market

Vietnam is evolving not only in traditional manufacturing but also in advanced industries such as semiconductors and artificial intelligence. With major investments from global giants like Intel, Samsung, Apple, and Nvidia, the country is becoming an increasingly important tech hub in Southeast Asia. This innovation-driven development makes Vietnam an attractive long-term destination for active equity fund managers.

Geopolitically, the country remains stable. Through its so-called “bamboo diplomacy,” the government is skillfully navigating between competing global interests. Despite uncertainties surrounding U.S. tariffs, Vietnamese exports have remained relatively resilient – an advantage over China and other competitors.

Stock Market on the Rise

Vietnam’s stock exchange is regaining momentum: Average daily trading volumes now stand at around USD 850 million. The introduction of the new KRX trading system and the anticipated upgrade to Emerging Market status by FTSE in September 2025 are creating new catalysts. A subsequent upgrade by MSCI could follow – providing significant upside potential for Vietnamese equity funds (Vietnam equity fund, Vietnamese equity fund).

Long-Term Opportunities for Investors

According to Timpanaro, Vietnam currently offers one of the most exciting investment opportunities in Asia – with expected corporate earnings growth of 17% and a price-to-earnings ratio of just 11.9. The Vietnamese market has a low correlation with global indices and is ideal for diversifying international portfolios.

The numbers speak for themselves: With USD 25.35 billion in foreign direct investment in 2024, Vietnam reached a record high. Even Chinese companies are increasingly relocating production to Vietnam – a trend Timpanaro expects will continue.

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