Krungthai Asset Management (KTAM) recommends investing in the Vietnamese stock market, citing its high growth prospects supported by China's reopening and laggard prices.
Chavinda Hanratanakool, chief executive of KTAM, said amid intense volatility caused by inflation and monetary policy uncertainty, investors should look for opportunities in markets with low volatility, high growth prospects and relatively laggard prices compared with other markets in the region.
She said the Vietnamese stock market has all the attributes as that nation's economy has perhaps the highest potential for growth in Southeast Asia.
Vietnam's economy is expected to recover because of a number of factors such as the country's large working-age population, which is favourable for its long-term economic development, said Mrs Chavinda.
Moreover, the economy is expected to benefit from China's reopening.
Stock prices in the Vietnamese bourse are considerably more laggard than those in other Asean markets after a series of scandals and crackdowns on corruption in the private sector soured market sentiment and caused massive selloffs, she said.
However, considering the fundamentals, Mrs Chavinda said the laggard prices will benefit the market in the long run.
The Vietnamese economy will face a limited impact from the Russia-Ukraine war because Vietnam is less reliant on Russian trade.
These advantages should allow Vietnam to benefit greatly from a variety of industries, she said.
KTAM launched KT-VIETNAM-A and KT-VIETNAM-SSF, a long-term tax-saving fund, which invest in the Vietnamese stock market.
The initial public offering is scheduled for July 4-12.
Both funds are actively managed, aiming to generate higher returns with a focus on stocks benefiting from Vietnam's economic growth, said Mrs Chavinda.
