Update: 10:41 | 10/02/2022
Emerging markets (EM) like Vietnam can provide potential growth opportunities for investors who do their due diligence, according to an article published by ETF Trends, a leading source in Exchange Traded Funds (ETF) news of the US.
The article said investing in EMs can come with its own nuances, particularly because each country’s performance can vary with respect to their economic stability.
The Covid-19 pandemic certainly roiled a lot of EM opportunities in 2020, but certain countries that were able to respond swiftly muted its economic effects.
Vietnam, for example, was able to rebound from the pandemic due to a quick, pointed response by its government, the article noted.
Fitch Ratings forecasts growth ahead for Vietnam in 2022. Economic effects related to the pandemic don’t appear to be as severe, thanks to the government’s move to increase vaccinations in the country.
“We expect growth to accelerate to 7.9 percent in 2022 and 6.5 percent in 2023 as the recovery becomes established,” the article cited Fitch Ratings as saying.
“Vietnam has also had less economic scarring than many emerging markets, as it is one of the few countries that did not experience an annual contraction in GDP amid the pandemic shock.”