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Investing in Vietnam pros and cons

As for any other country in the World, Vietnam has some strengths and some weaknesses. If you intend to invest a tangible part of your net worth in Vietnam, you need to fully understand what are the potential benefits but also what are the associated risks with such an investment. Tangible is a keyword in our previous sentence. If an investor has a net worth of $5 million and decides to invest only $100k

in Vietnamese stocks, we would not consider this investment to be tangible. Why? Simply because this investor would have invested only 2% of his or her net worth in Vietnam. $100k investment is still tangible by nature but far less when one considers the whole portfolio of the investor. Another example would be an investor having a net worth of $200k and who decide to invest $20k in Vietnamese stocks. In this case, we would consider this investment to be tangible because it would represent 10% of the total net worth of the investor. Having clarified this important notion of tangible investment, let s review quickly the pros and cons of investing in Vietnamese stocks. Among the risks, we find among other ones: currency risk, political risk (political risk in Vietnam is however relatively low), and the risks generally associated with investing in stocks (notably the one linked to high volatility) and/or in an emergent country. On the other hand, investing in Vietnamese stocks may have several advantages. The biggest one being that it has the potential (no one knows for sure) of providing you higher returns than investing in European or American stocks.

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