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Wall Street pointed out that Vietnam is one of the three “hottest” markets in Southeast Asia

Ahead of the second quarter of 2022, CNBC conducted a survey with analysts from Goldman Sachs and JPMorgan Asset Management to find out which Southeast Asian markets have the most potential.

“Over the past 10 years, the Southeast Asian equity market has underperformed and has largely been dominated by investors,” said Timothy Moe, head of equity strategy for Asia Pacific at Goldman. the world ignores”.

The leading banks on Wall Street have selected the top 3 markets in Southeast Asia: Indonesia, Vietnam and Singapore.

Indonesia

Mr. Desmond Loh, portfolio manager at JPMorgan Asset Management, said that Indonesia has the potential to develop the banking industry because the majority of people do not have a bank account or do not have enough conditions to access financial services. .

The sharp increase in commodity prices is also beneficial to Indonesia’s export earnings as well as the country’s trade balance, thereby supporting the rupiah as well as Indonesia’s short-term growth prospects, Mr. Loh said. .

Vietnam

The director of JPMorgan Asset Management is also quite fond of Vietnam. Mr. Loh called Vietnam a star in terms of economic resilience and growth. He added, Vietnam is one of the few countries with positive economic growth during the pandemic.

“To capitalize on growth, we believe in banking and retail,” Mr. Loh said. However, Mr. Loh did not name specific stocks.

Singapore

Meanwhile, Singapore is the market that Goldman Sachs chooses. Mr. Moe gave 3 main reasons why banks are interested in investing in Singapore.

The first is the impetus for economic improvement and growth from an area that is recovering late from Covid-19.

Second, the banking sector has a large share of stock indexes and has benefited from the shift to tighter monetary policy and rising interest rates.

And finally, the “gradual emergence” of digital economy companies is being included in the stock indices of Indonesia and Singapore.

This year, Indonesia’s Jakarta Composite Index is up more than 7%, Vietnam’s VN-Index is up about 1% and Singapore’s Straits Times index has gained more than 9%. On Wall Street, the S&P 500 is down 4.6% this year, while Europe’s Stoxx 600 is down about 6%.

According to Loh, Southeast Asia is “relatively isolated” from the escalating geopolitical tensions in Europe because Russia and Ukraine account for less than 1% of the region’s exports. “Escalation of geopolitical risks leading to price escalation in the short term helps ASEAN export markets strengthen their position,” he added.

According to investors, the impact of the Fed’s tightening of monetary policy in March 2022 will not affect markets in Southeast Asia too much because the inflation situation in the region is less severe than in other countries. Western development.

Mr. Moe said that Southeast Asian economies also recovered better than previous cycles.

Source: CNBC

https://cafef.vn/pho-wall-chi-ra-viet-nam-la-mot-trong-ba-thi-truong-nong-nhat-dong-nam-a-20220412112653132.chn


According to Anh Ngoc

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