Vietnam on the rise: Tailwinds continue

Key takeaways:

• Vietnam has rapidly closed the gap with EM ASEAN peers, surpassing the Philippines in GDP per capita and equity market capitalisation, and moving closer to Indonesia
• Vietnam’s economic transformation has been driven largely by manufacturing and its growing role in the global tech supply chain
• Strong macro fundamentals – persistent FDI inflows, trade surpluses, and relatively healthy fiscal position – continue to anchor Vietnam’s long‑term economic resilience and drive strong equity performance
• Vietnam’s financial markets across asset classes are expanding, with improving credit ratings, deepening bond markets, and a fast‑growing equity market poised to benefit from FTSE Russell’s EM upgrade in 2026
• Owning Vietnam equities provides exposure to the second-order effects economic growth as Vietnam equity is concentrated in domestic-revenue-oriented industries such as Real Estate and Financials. Rapid urbanisation, rising household incomes, a growing middle class, industrial expansion and FDI inflows have boosted demand for properties and infrastructures

Points of differentiation:

• This report offers investors an entirely new lens on Vietnam – reframing it not as a “frontier outlier,” but as a fast‑advancing economy that now outperforms or surpasses several FTSE Russell‑classified Emerging Markets across growth, income levels, and market size
• It bridges Vietnam’s macro transformation and its investable market reality, helping investors spot a powerful dynamic: a manufacturing‑driven growth engine translating into equity opportunities dominated by domestic demand, credit expansion, and urbanisation
• It highlights forward‑looking catalysts, including Vietnam’s FTSE Russell country classification upgrade, structural FDI tailwinds, and rising role in global tech supply chain, providing investors with a roadmap to position

What does our research mean for investors?

Vietnam stands out as one of Asia’s most compelling structural growth stories. Its improving macro fundamentals, expanding financial markets, and upcoming FTSE Russell EM reclassification point to rising foreign participation and deeper market liquidity ahead. This paper allows investors to explore equity investment opportunities arising from the transformative, structural shift of the Vietnamese economy.