Problems in the US? Look for Opportunities in Vietnam and Singapore

August 12, 2007

This past weekend, I received a bunch of inbound hits due to some past articles that I have written including Vietnam’s goals for 2007 and the Dos and Don’ts of doing business in Vietnam.

This is a testament to the continued foreign interest in Vietnam, a country that I am extremely bullish about.

As China continues to revalue the Yuan, their goods will become increasingly expensive. Foreign companies will be looking elsewhere for cheaper production facilities - Vietnam has and will continue to fit that bill.

They are expanding their Stock Exchange aggressively. Earlier this year, Vietnam signed an agreement to “establish a channel for information exchange in the areas of operations, regulatory framework, as well as equities and derivatives products.”

On the first of this month (Aug 1), Vietnam debut the first integrated online stock exchange floor in the country.

Last week, Prime Minister Nguyen Tan Dung said that the stock market would be the main channel through which long term capital would be brought into Vietnam. Under the plan Vietnam’s stock market capitalization is set to account for 70 percent of the country’s gross domestic product (GDP) by 2020. Between now and 2010, all of the major state companies, including large commercial banks, would list their shares on the stock market, which would account for 50 percent of the GDP, according to the Ministry of Finance.

Expect this to lead to a large infusion of foreign capital, which would be positive for not only the economy, but also the real estate market and currency in the years to come.

As for Singapore:

Singapore’s economy grew at 14.4 percent on an annualized basis (after first quarter GDP growth was revised up to 8.8 percent). Not only is this the fastest pace of growth in 2 years, but also the envy of countries like the US. The boom is coming from both the construction and financial services sector. Six months ago, I indicated that the opportunities in Singapore were extremely bright with not only the stock market performing well, but mainly because Singapore is in the midst of building its own casino industry.
The economy is only expected to continue to grow especially in the construction and real estate sector. Not only is Singapore already a major financial hub and on its way to becoming the new Switzerland due to its bank secrecy laws, but it is also aiming to become the new Macau.

Posted in New Asian Tigers, Singapore, Uncategorized, Vietnam