One of the last frontier markets to emerge in Asia, we see Vietnam as a ten-year buy.
- Merrill Lynch strategy report, February 2006
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To Invest or Not to Invest?
Tran,
Took a stab at your question here:
Rules of Thumb for Investing in Vietnam
But there is a bigger question that I am sure we have all been thinking about.
We probably should ALL know better than to gamble our hard earned money on this crazy market.
But if you really were to take some positions and try to make some money in Vietnam's stocks, which would you pick?
I have a few ideas I am kicking around. Probably you do too.
Just for kicks, lets put on our thinking caps and throw out a few names in the coming weeks and see if we can come up with a few winners...
It can be anything
It doesn't need to be Vietnam's stocks. Anything for a better rate of return; at least capital preservation.
Let's assume that I have a pile of VND(10 billion) and I want a better return than VND fixed deposit
rates( e.g. 18%)
Investment Ideas
Let's toss out a few investment ideas and see what people think.
* Gold - As pointed out before it seems cheap, offers good protection against inflation and falling currencies and the banks here will even pay you some interest! Probably not a bad play in these recessionary & inflationary times.
* USD - Probably too speculative, but USD was overbought, now has corrected and may soon be oversold. Which way will the VND/USD go next? Note I do not advocate buying and hoarding USD, just suggesting you may might do worse than to leave some USD in the bank and collect interest (assuming of course the bank/government does not force you to convert against your will: Vietnam to Let Banks Convert Dollar Deposits to Dong)
* Property - Again are we oversold? I doubt we have seen bottom yet, but the next 6 months should present some good opportunities for long term investors in the right properties.
* Stocks - VN Market has put in a bottom and a strong rally. Probably too strong, but we may get a pullback and a chance to buy the dips here. Assuming you have the stomach for Vietnam equities (Read here first: Rules of Thumb for Investing in Vietnam)
* Commodities - Take your pick, but beware as this trend is long in the tooth and may be played out and due for a reversal.
Other thoughts?
There is always Salt... LOL
(The Next Commodity-Salt !!)
What will these nutty speculators think of next...
How about air?
I hear there is a major Oxygen shortage brewing, what with all the CO2 we are making...
Crisis investing
I believe Vietnam is the only place in the world where the banks pay you interest for your physical gold deposits. I see inflation..higher inflation
on the horizon for Vietnam; especially after the
37% petrol price increase.
Gold is a good investment now in Vietnam. With
the ban on gold import and geopolitical unrest,
the only way for Vietnam gold price to go is UP!
The beauty of it all is that you get to buy it cheap.
How about clean water for household and clean
lab uses? Saigon river water is almost at untreatable stage.