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Why investing in Vietnamese stocks make sense?


Investing in Vietnam makes sense for many different reasons. We are not going to list all of them again in this post but if you read our posts regularly you should already know most of them very well by now. Knowing that, the questions that you may ask yourselves are: what are my different options to invest in Vietnam and how do I invest in Vietnam? Generally speaking, you can invest in a foreign country through different ways. One of them is to invest directly in a business there, another one is to purchase Vietnamese stocks or via ETF and finally you could also opt for a real estate investment. As far as Vietnam is concerned, investing in real estate as a non-Vietnamese national is not totally impossible but still extremely complicated and restricted. Also, you need to take into consideration that property prices in many different place of Vietnam are not as cheap as one would expect. In fact you might be surprised to find out that the Price per Square Meter to Buy an Apartment in the Centre of Hanoi is not far to $ 2 000 while the Price per Square Meter to Buy an Apartment in the Centre of Ho Chi Minh is even 30% higher than that. The combination of relatively high property prices with the extreme difficulty of purchasing Vietnamese properties makes direct (indirect could be a different thing) real estate investment in Vietnam not very appealing for non-Vietnamese investors. That leaves us with two types of investment: investing in a business in Vietnam or investing in Vietnamese stocks. At Anh Thomas Investment, we are firm believers in investing in Vietnamese stocks. Our historical performance shows that this could be a very profitable adventure. The first thing to consider is whether this type of investment is right for you. You have to ask you a number of questions before going further. Among these questions, there is obviously the one about how much money would you have to invest in Vietnamese stocks? We believe that there is a relatively easy way to respond to this specific question. Unless you are a young professional (we will come back to this specific case later on in this post) an easy rule of thumbs that you could use is that you should first determine your total net worth and then investing up to 10% of it in Vietnamese stocks. This would be different depending on where you are in your life. If you are a young professional, it could make perfect sense to invest more than 10% of your net worth in Vietnamese shares. Why such a distinction? Well, the idea is that young investors have more time ahead of them and they can (or even should) take more risks with their investments in order to reach higher returns. The fact that young investors should take more risks does not mean in any way that they should gambling or take highly speculative trades. It just means that they would be less impacted by a temporary fall of the markets since they could approach then a wait and see approach while some older investors might have no choice but to sell their stocks and cash in. If you wish to learn more about how to invest in Vietnamese stocks just contact us at info@anhthomas.com.

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