I will write about investing in Vietnam ETFs in this post. Recently, there has been an ongoing trade conflict between the United States and China. Additionally, many companies are relocating their manufacturing facilities from China. Moreover, the Chinese economy is facing challenges. Consequently, Vietnam is gaining attention due to these reasons. In fact, while stock markets in various developed countries are experiencing declines, the stock prices of Vietnam investment options are on the rise.
Why invest in Vietnam ETF?
In the past, China played the role of the world’s factory. However, currently, it has become more challenging for global companies to conduct business within China due to factors such as the ongoing trade tensions between the United States and China. As a result, many global companies have begun to seek alternatives, with countries like Vietnam and India emerging as attractive options. Among these, Vietnam, located adjacent to China, offers the advantage of access to skilled labor at relatively lower costs.
Looking at the current growth rate of Vietnam, it is evident that it is experiencing a significant upward trend. Another positive development is the high likelihood of a visit by US President Biden to Vietnam. This holds the potential for increased investment in Vietnam as a means of countering China. In essence, Vietnam stands a strong chance of emerging as one of the primary beneficiaries in the ongoing US-China tentions.
The Vietnamese market has a very high potential for growth until the conclusion of the US-China trade tensions, and perhaps even beyond. The rationale behind this is as follows: Let’s assume that companies have withdrawn their production facilities from China and relocated them to Vietnam. Now, let’s also imagine that the US-China tensions have been resolved, leading to an improvement in their relations. However, companies have already invested substantial amounts of money to establish factories in Vietnam. Moreover, the availability of highly skilled labor in Vietnam at relatively lower costs is also a factor. As a result, Vietnam could potentially assume the role of the new global factory.
How can I invest in Vietnam?
The investment method in Vietnam that I would recommend is investing in a Vietnam ETF. Most of us are now aware of the appeal of investing in Vietnam, but we might not know exactly where to invest within Vietnam. There is a solution tailored for us in the form of Vietnam ETFs. One such option is the “VanEck Vectors Vietnam ETF”.
If you look at the charts, you’ll see a consistent upward trend recently. Therefore, if you’re currently searching for a new investment opportunity, I recommend considering investments in Vietnam.
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