Monday, December 13, 2010

HSBC Global: Vietnam Insights

A massive piece of research by global banking giant HSBC on the compelling investment story of Vietnam; a market that should be on everyone's radar in the decade ahead.  (huge pdf file with graphs galore)

You usually get one of two responses when you talk about Vietnam’s stock market.
Either investors are interested but don’t know where to start because of
limited transparency. Or they are not interested because of the low turnover.

But things are changing. Vietnam presents an exciting opportunity in 2011.
The National Party Congress in January 2011 could be the short-term catalyst
while accelerating privatisation and ongoing market reform should provide
multi-year support that lifts liquidity by luring back foreign investors.

We understand investors may be sceptical as these catalysts have failed to trigger a
sustainable rally in the past. We explain in this report why it is different this time.

5 key catalysts:
  1. Economy Set to Outperform
  2. Market Reforms Gaining Traction
  3. Privatization to Accelerate
  4. Party Congress a Near Term Catalyst
  5. Valuations Seem Reasonable

I don't follow the country close enough at this time, so I am not sure what exactly is going on with their stock market, but it has surged in December; after basing all year the Vietnam ETF is up nearly 20% month to date!  If this was a stock you scream breakout...

Hat tip James Altucher via WSJ

[Apr 7, 2010: Vietnam Begins to Lure Business Away from China]
[Dec 29, 2009: NYT - Vietnam is Refining its Role on the Global Stage]

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