Vietnam is responding to tariffs imposed by its largest trading partner by shifting focus toward the private sector to drive economic growth. The country is reducing bureaucracy and launching major infrastructure projects as part of this effort.
Amy Oldenburg, Head of Emerging Markets Equity at Morgan Stanley Investment Management, described the current atmosphere in Vietnam: "The reforms have led to unbridled optimism on the ground."
Oldenburg discussed how these reforms are changing the business landscape in Vietnam. She noted that encouraging private enterprise and streamlining government processes are seen as ways to sustain growth despite external pressures.
She also outlined several risk factors for investors considering opportunities in Vietnam and other emerging markets. "There is no assurance that a portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that the market values of securities owned by the portfolio will decline and that the value of portfolio shares may therefore be less than what you paid for them. Market values can change daily due to economic and other events (e.g. natural disasters, health crises, terrorism, conflicts, and social unrest) that affect markets, countries, companies, or governments. It is difficult to predict the timing, duration, and potential adverse effects (e.g. portfolio liquidity) of events. Accordingly, you can lose money investing in this portfolio. Please be aware that this portfolio may be subject to certain additional risks. In general, equities securities’ values also fluctuate in response to activities specific to a company. Investments in foreign markets entail special risks such as currency, political, economic, market and liquidity risks. The risks of investing in emerging market countries are greater than the risks generally associated with investments in foreign developed countries."
She further clarified that her comments represent her own views at the time of publication: "The views and opinions are those of the author as of the date of publication and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. The views expressed do not reflect the opinions of all investment personnel at Morgan Stanley Investment Management (MSIM) and its subsidiaries and affiliates (collectively 'the Firm') and may not be reflected in all the strategies and products that the Firm offers."
Oldenburg emphasized that her statements should not be taken as financial advice: "This material is a general communication, which is not impartial, is for informational and educational purposes only, not a recommendation to purchase or sell specific securities, or to adopt any particular investment strategy. Information does not address financial objectives, situation, or specific needs of individual investors."
Charts or performance data referenced were presented only for illustration purposes; past results do not ensure future returns.
Investors are encouraged by Oldenburg to review relevant documents before making decisions: "Prior to making any investment decision, investors should carefully review the strategy’s relevant offering document."