What you need to know about the SG market
#whatstrending feat. CGS-CIMB
Ever wondered what is currently driving the local and regional markets? #whatstrending is a new series addressing some of the most trending questions/topics on the markets for investors. Designed to be educational, expect to get factual information on what is driving sectors and stocks listed on SGX, featuring insights from professionals in the community.
Today, we hear more from CGS-CIMB Securities. Billy Toh is the Head of Content & Investment Lead at ProsperUs, CGS-CIMB’s digital investment service and is based in Singapore.
Q: Which aspects of Vietnam’s market is worth monitoring closely?
From Billy Toh, Head of Content & Investment Lead at ProsperUs:
Its growing manufacturing sector. Manufacturing in Vietnam has undergone a significant transformation, becoming a cornerstone of the economy. A combination of low labour costs, improved infrastructure, and pro-business policies make the country an attractive manufacturing hub for both local and foreign investors.
Its outstanding stock market performance. The year-to-date performance of Vietnam’s Ho Chi Minh’s Stock Index clearly outpaces its ASEAN neighbours. Only Vietnam, Indonesia, and Singapore’s equity benchmarks are in positive total return territory so far in 2023. With the Ho Chi Minh Stock Index’s total return of 18.7%, Vietnam’s stock market has surpassed notable ASEAN markets, offering significant growth potential for investors.
Q: Why should investors be looking at Vietnam and what does the CGS Fullgoal Vietnam 30 Sector Cap ETF have to offer?
From Billy Toh, Head of Content & Investment Lead at ProsperUs:
Vietnam is making waves in the Southeast Asian investment landscape given its young population and rapidly growing middle class.
For those looking to tap into this momentum, the CGS Fullgoal Vietnam 30 Sector Cap ETF (SGX: VNM) (SGX: VND) offers a prime opportunity.
The SGX:VNM is for those trading in Singapore Dollars, while the SGX:VND allows you to invest in US Dollars. The ETF tracks the iEdge Vietnam 30 Sector Cap USD Index (NTR), giving you direct access to 30 of the top, most liquid companies listed on the Ho Chi Minh Stock Exchange.
Vietnam, having emerged as one of the fastest-growing economies in Southeast Asia, recorded year-on-year GDP growth of 4.14% in 2Q23 – which is testament to its resilience and dynamic growth trajectory.
As the economy continues its journey towards modernisation and increased integration into the global economy, it promises ample growth opportunities for investors.
The CGS Fullgoal Vietnam 30 Sector Cap ETF offers an efficient and effective means to benefit from this growth story.
Whether you’re aiming for diversification, growth potential, or simply a hassle-free investment method, this ETF is worthy of consideration.
Q: What other factors make Vietnam an attractive destination for investment?
From Billy Toh, Head of Content & Investment Lead at ProsperUs:
Booming real estate industry: Vietnam’s urbanisation, coupled with rising incomes and changing lifestyles, has fuelled the growth of its real estate sector. This boom encompasses both residential and commercial real estate, offering various investment opportunities and allowing public-listed companies in Vietnam to take advantage of this trend.
Rising middle class and young, well-educated workforce: The rise of the middle class in Vietnam is nothing short of remarkable. This demographic transformation, coupled with a young and well-educated workforce, is driving consumption patterns and making Vietnam an attractive market for a range of industries.
Currency hedge: The option to invest in SGD and USD offers a layer of protection against currency risks when investing in Vietnam. Given the unpredictability of currency movements, this provision provides an additional safety net for investors looking to tap into the opportunities in Vietnam.
Diversification benefits: Despite the emerging strength in Vietnam’s economy, the companies listed in Vietnam are still underrepresented in other international portfolios. This is mainly due to the country’s diverse economic landscape.
Investing in the CGS Fullgoal Vietnam 30 Sector Cap ETF not only taps into its growth potential but also provides the means to diversify, potentially dampening portfolio volatility.
To read the full report, click here.
For more insights, visit cgs-cimb.com.my/
