Vietnam 2025: A Compelling Destination for Investment Funds
Structural Advantages and Strategic Momentum: Why Vietnam Attracts Active Equity Funds
Vietnam stands out in Southeast Asia as a consumer-driven economy with a stable political environment, a young and educated workforce, and a competitive cost structure. As the country recovers from pandemic disruptions and prepares for an upgrade to emerging market status, its economic fundamentals continue to attract international capital. Among the most compelling routes to access this growth is through anactive equity fund like the Lumen Vietnam UCITS Fund.
With a population of approximately 98 million and over 8.8 million households earning more than USD 10,000 annually, Vietnam offers vast domestic market potential. Domestic travel has returned to pre-pandemic levels since 2022, and international tourism is rapidly rebounding. Exports and the manufacturing sector are gaining momentum once again, supporting both GDP and consumption growth.
The Vietnamese government continues to pursue investor-friendly reforms across the energy, banking, and real estate sectors. At the same time, global supply chain shifts—driven by China+1 strategies—are redirecting foreign direct investment (FDI) flows to Vietnam. In fact, the country now ranks among the top global beneficiaries of supply chain realignment, with major corporations such as Intel, Lego, and Google expanding operations locally.
What further strengthens Vietnam’s macro positioning is its currency stability. Unlike other Southeast Asian currencies, the Vietnamese Dong has remained resilient against global volatility, supported by solid foreign exchange reserves.
An active equity fundsuch as Lumen is well positioned to capitalize on this evolving landscape. By focusing on domestic companies with high growth potential, applying both top-down macro insights and bottom-up company analysis, and maintaining regular on-the-ground research through local analysts, the fund combines deep market knowledge with agile decision-making.
As Vietnam awaits its reclassification from a frontier to an emerging market, inflows from global investors are expected to increase sharply. This provides a compelling entry point for long-term capital seeking diversification and exposure to one of Asia’s most promising economies.