- 2022-01-07T00:00:00
- Strategy
Vietnam’s GDP growth of 2.6% in 2021 fell well short of our and consensus expectations at the start of the year, primarily due to the ‘lost quarter’ in Q3 2021 caused by substantial restrictions to combat Vietnam’s fourth wave of COVID-19. In contrast, the VN-Index surprised on the upside with a gain of 36% as domestic retail investors drove trading volumes and the index to new record highs. While global markets face headwinds in 2022 from slowing growth and monetary tightening to combat inflation, the outlook for Vietnam is relatively bright. We expect a strong recovery in GDP growth combined with relatively modest increases in interest rates to support a 13% gain in the VN-Index to our unchanged end-2022 target of 1,700.
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