What returns can I expect from investing in Vietnamese stocks?
The first response to this question is short and simple: we cannot tell you! And this is because it is simply impossible to give an exact number. Investing in stocks is always risky and let s face it investing in Vietnamese stocks is even riskier (riskier yes but also with gains potentially much bigger - risks and rewards go hand in hand).
What can be done is looking at past performances, keeping in mind that past performance is not a guarantee about future performances.
Anh Thomas has been advising its clients since 2011. The company started through a joint venture before becoming totally independent only a year and a half later.
Since then, our company and its clients have had good years and more challenging ones.
So, one more time, let us be very clear on the fact that it is impossible to know what our clients' returns will be in the future. It is however possible, based on previous returns and our expertise and own projections, to give rough estimates of likely returns over the 5 or 10 next years. These are and will remain only estimates. We believe that Vietnamese stocks have a roughly 10-12% annual return potential. This number includes dividends, so we are talking here about total returns. However, we also believe that at current prices, the Vietnamese stocks are undervalued by a large amount. It is difficult to provide an exact number, but we think that this undervaluation is very material. Hence our expected annual average returns in the future, when taking into account the undervaluation, is way above the 12% mark.