Hopes are riding high, but lackluster interest in Vietcombank's privatization means there could be trouble ahead. To date, few Vietnamese companies have had enough heft for foreign investment funds to consider. More than $9 billion has been raised globally for investment in Vietnam but some $2 billion of this still hasn't been deployed, for lack of investment opportunities. Foreigners are restricted from holding more than half of listed companies, and they can own just 30% of banks such as Vietcombank.
Despite the worries over Vietcombank, the longer term prospects for Vietnam's stock market look strong. GDP growth has averaged more than 8% for the past few years. Multinational heavyweights such as Intel (INTC), Canon, and Compal have poured billions into manufacturing to take advantage of Vietnam's industrious workforce. And in January, Vietnam was admitted to the WTO. Although growing inflation could be a concern, Vietnam's population of 84 million, half under the age of 30, could still make it Asia's next economic tiger.
No comments:
Post a Comment