How to Invest in Vietnam

From a highly centralized market, the economy of Vietnam is slowly evolving into a socialist tilting one. The country was affiliated to Comecon and was closely associated with the Soviet Union with its allies from the 1970s to the 1990s. But after the disbanding of Comecon, the country adopted a more liberalized, open policy of economic growth and devaluation of Vietnamese dong. The modern approach showed immediate effect as thousands of new start-up businesses, including fresh entrepreneurs, were created. The economic growth was jeopardized during the Asian financial crisis of 1997. The macroeconomic approach brought stability and growth in the economy.GDP of the country stands at $261.637 as of 2019, with a growth rate of 7.1%(20118),7%(2019).GDP per capita is $2,740 nominal (2019est),$8,066PPP(Purchasing Power Parity),2019est.

Upbeat outlook

Vietnam is embracing an open market based financial system and has become an integral part of the global economy. With a large group of small and medium enterprises (SEMs), now it has emerged as a leading agricultural exporter and destination of foreign investment. Overseas investments have played a pivotal role in persistent economic firmness. The tourism industry, opulence hotels and resorts attract heavy foreign investment.

As limitations of foreign investment were abolished in 2015. The market capitalization of the stock exchange is US$188.73 billion, which enhanced 10.7% against 2018; which is equivalent to 79.2% of GDP of 2018 and 72.6% of GDP of 2019. Foreign investors bought shares and bonds net worth US$36.4 billion till the end of 2019, which was 11.6% more that of the previous year. The VN index that is the benchmark of HoSE ended at 960.99 in 2019, which is higher than 7.7% from the previous year, highest registered growth in the Southeast Asian region. In the last two years, foreign investors were net buyers and expected to remain so in the coming years.

ETF (Exchange Traded Funds)

The simplest way to invest in Vietnam is through ETFs (Exchange Traded Funds). These are investment tools very similar to mutual funds but can be traded like stocks. It is like a basket consisting of stocks, bonds and other assets. You can also find a brokerage firm to start your investment in the Vietnamese stock exchange or simply use a copy trading service. First, to open a trading account, you have to furnish relevant documents that include account opening application, power of attorney, copy of your passport, application for trading code and for American citizen credentials of FACTA fulfilment. You also need to open a bank account in Vietnam through which you will transact and resolve global settlements. After fulfilling all other formalities, you need to apply for securities trading code along with notarized passport copy. The security trading code is an essential document for starting your investment process.

Innovative way

Trading in securities has the potential to give you a huge return that no other investment can. A lot of skill, knowledge and patience are required to be a successful trader. If you do not have the requisite technical skill of reading charts and other indicators, then avail the service of copy trading. The strategy manager will handle your fund and portfolio to churn it in the most profitable manner. You will be able to have a birds-eye view of all transactions, holding and full control over it. Also, you will pay the fee only when there is a trade with profit.

Ellen Hollington

Ellen Hollington is a freelance writer who offers to ghostwrite, copywriting, and blogging services. She works closely with B2C and B2B businesses providing digital marketing content that gains social media attention and increases their search engine visibility.