Sunday, June 5, 2016

Vietnam Opportunity Fund presentation by managing director Andy Ho

Link:

A recent presentation on Vietnam and the Vietnam Opportunity Fund by managing director Andy Ho. Several key takeaways and characteristics I like:

Vietnam economy showing above average growth relative to peers

Young and growing population (demographics are destiny)

Government reforms around privatization of State Owned Entities and lifting of foreign ownership limits

Switched on management of VOF that has extensive experience in country and access to information and deals

Ability to participate in private equity and privatization of SEO's

Buying back shares to narrow discount to NAV

One of the big things I noticed is that the Vietnamese stock market has basically went nowhere since the crash back in 2008. The stock market capitalization is less than 30% of GDP which is quite low in comparison to Vietnam's regional peers. With the upcoming catalyst of continuing privatization along with lifting of foreign ownership limits we could see a big run in the Vietnam capital market as it just corrects back to the mean.



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