I think if we told people in 1970s America that one of the most promising places you could put your money was Vietnam, they’d call you nuts. Fast forward over the decades, and I’m going to show you why the VanEck Vietnam ETF (VNM) is a great trade here, notes Sean Brodrick, editor at Weiss Ratings Daily.
Right now, a massive wave of capital, factories, and supply chains is quietly shifting into Vietnam. The country put up roughly 8% real GDP growth in 2025, pushing the economy past $500 billion. That’s a nice move for a “tiny” tiger.
And unlike many emerging markets, Vietnam isn’t fighting inflation or policy instability at the same time. Inflation remains contained. Policy is pro-growth. And foreign capital is pouring in. If exports stay strong and infrastructure spending ramps up as planned, upside scenarios point to much higher growth.
VNM holds about 50 companies across key sectors like financials (banks, brokers), real estate and property developers, and consumer-facing businesses.
The valuation is what really stands out, too. The current P/E of the broad Vietnamese market is around 15x to 16x. Price/book is around 2.1x and forward earnings growth is projected at around 13% to 14%. That gives you a PEG ratio well below 1 on the broad market.
From a trading standpoint, VNM has been rangebound since late last year. It hasn’t yet reflected the improving fundamentals underneath. That’s exactly the kind of disconnect you want.
Because once global investors start reallocating toward emerging markets — and toward supply chain winners like Vietnam — I expect VNM to break out of that range and head for higher prices. The balance of forces is overwhelmingly positive. And the market hasn’t fully priced it in. That’s your opportunity.
Recommended Action: Buy VNM.
