Investment Opportunities in the Next Growth Story: 8 Reasons to Jump on the CGS Fullgoal Vietnam ETF

September 20, 2023

Vietnam is making waves in the Southeast Asian investment landscape given its young population and rapidly growing middle class.

For those looking to tap into this momentum, the CGS Fullgoal Vietnam 30 Sector Cap ETF (SGX: VNM) (SGX: VND) offers a prime opportunity.

The SGX:VNM is for those trading in Singapore Dollars, while the SGX:VND allows you to invest in US Dollars.

The ETF tracks the SGX iEdge Vietnam 30 Index, giving you direct access to 30 of the top, most liquid companies listed on the Ho Chi Minh Stock Exchange.

Ready to dive into Vietnam’s burgeoning stock market and its various opportunities?

Here are eight compelling reasons to explore this investment avenue.

1. Vietnam’s strong economic growth momentum

Source: Bloomberg, Prosperus

Vietnam has emerged as one of the fastest-growing economies in Southeast Asia.

The nation’s Q2 2023 GDP growth of 4.14% is a testament to its resilience and dynamic growth trajectory.

As Vietnam continues its journey towards modernisation and increased integration into the global economy, it promises ample growth opportunities.

2. Growing manufacturing sector

Manufacturing in Vietnam has undergone a significant transformation, becoming a cornerstone of the economy.

A combination of low labour costs, improved infrastructure, and pro-business policies make the country an attractive manufacturing hub for both local and foreign investors.

3. Outstanding stock market performance

The year-to-date performance of Vietnam’s stock market clearly outpaces its ASEAN neighbours.

Source: Bloomberg, Prosperus (as of 20 September 2023, 12pm)

Only Vietnam, Indonesia and Singapore’s equity benchmarks are in positive total return territory so far in 2023

Source: Bloomberg, Prosperus (as of 20 September 2023, 12pm)

With the Ho Chi Minh Stock Index’s total return of 18.7%, Vietnam’s stock market has surpassed notable ASEAN markets, offering significant growth potential for investors.

4. Booming real estate industry

Vietnam’s urbanisation, coupled with rising incomes and changing lifestyles, has fuelled the growth of its real estate sector.

This boom encompasses both residential and commercial real estate, offering various investment opportunities and allowing public-listed companies in Vietnam to take advantage of this trend.

5. Rising middle class and young workforce

The rise of the middle class in Vietnam is nothing short of remarkable.

This demographic transformation, coupled with a young and dynamic workforce, is driving consumption patterns and making Vietnam an attractive market for a range of industries.

6. Currency hedge

The option to invest in SGD and USD offers a layer of protection against currency risks when investing in Vietnam.

Given the unpredictability of currency movements, this provision provides an additional safety net for investors looking to tap into the opportunities in Vietnam.

7. Diversification benefits

Despite the emerging strength in Vietnam’s economy, the companies listed in Vietnam are still underrepresented in other international portfolios.

This is mainly due to the country’s diverse economic landscape.

Investing in the CGS Fullgoal Vietnam 30 Sector Cap ETF not only taps into its growth potential but also provides the means to diversify, potentially dampening portfolio volatility.

8. Hassle-free investment

As most of us are not deeply acquainted with businesses in Vietnam, it’s difficult for us to invest in Vietnam.

However, ETFs such as CGS Fullgoal Vietnam 30 Sector Cap offer a simplified and convenient approach.

Instead of wading through the complexity of individual stock selection, an ETF provides broad exposure, capturing the market’s overall momentum.

Tap into the long-term growth opportunities in Vietnam

The economic and financial strides made by Vietnam are hard to ignore.

The CGS Fullgoal Vietnam 30 Sector Cap ETF offers an efficient and effective means to benefit from this growth story.

Whether you’re aiming for diversification, growth potential, or simply a hassle-free investment method, this ETF is worthy of consideration.

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.

Billy Toh

Billy is passionate about the capital market and believes in investing for the long haul. Prior to this, he was an economist at RHB Investment Bank, covering Thailand and Philippines market. He also worked as a financial journalist at The Edge Malaysia and has experience working with an asset management firm. Aside from the capital market, Billy loves a good conversation over a cup of coffee, is a fitness enthusiast and a tech geek.

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