Investment in Vietnam

3776 Words Oct 1st, 2014 16 Pages
Recently, Vietnam is attracting increasing interest from international investors as a promising emerging market. Some of the largest U.S. corporations such as Intel, IBM, Wells Fargo, Citigroup, to name a few, started to set foot in the country with confidence.

However, investing in Vietnam still constitutes a conundrum for outsiders and horror stories have been told by former entrepreneurs who lost their fortunes and even almost lost their lives dealing with the Vietnamese Communist Party. Case in point: Trinh Vinh Binh, a Vietnamese Dutch investor who escaped from Vietnam and later sued the Vietnamese government for breach of contract and for confiscating his assets in Vietnam. The case was eventually settled for an undisclosed amount
…show more content…
A long-term approach investing into the Vietnam Index (VNI) should capture significant profits generated by a steady growth rate of an emerging economy. Nonetheless, a current lack of sound laws and regulations limits drastically the participation of foreign investors into the Vietnam stock market. Furthermore, insider trading is notorious and frustrated many fund managers. Martin Adams, a longtime investor, had to close his Vietnam Fund in 2004 after 13 years of operation and said that his investors who bought in the beginning broke even. He now manages the 10-year-old Beta Vietnam Fund and declares that early investors are still losing money (Balfour, 2005).

2. Technology industry. Since the new policy of “Renovation” (Doi Moi) initiated in 1986 by the Vietnamese government, marked by the integration of Vietnam into the world community by joining AFTA and WTO respectively in 2001 and 2007, the two main industries that have seen a remarkable boost are telecommunications and Internet services. Vietnam’s telecommunications is among the fastest-growing industries of the country and by August 2008, the number of mobile phones subscribers has jumped to 48 million, representing a penetration percentage of 56% of the population. Internet services, which became available only since 1998, reach 6.2

More about Investment in Vietnam

Open Document