Vietnam, India and the Philippines are Asia's new VIP stock markets

Source : Asia Nikkei  October 12, 2016


Increase in market value

Surging interest from investors is a common feature of Asia's VIP markets -- Vietnam, India and the Philippines -- which are drawing greater attention as global growth continues to disappoint.

Vietnam : It has made an international name for itself as a manufacturing powerhouse. Vietnamese market is expected to grow strongly with the progress in the State-Owned Enterprises (SOE) privatisation and with the effective suppression of the ownership limit for many Vietnamese companies. In May, Vietnam Dairy Products (Vinamilk) became the first SOE to change its regulations to allow 100% foreign ownership. 

U.S. market index provider MSCI includes Vietnam in its Frontier Markets Indexes. The country aims to be upgraded to the Emerging Markets category within three years.

India : Much of the excitement about India comes from the sheer size of its market. The country has a population of 1.3 billion, and demand-oriented businesses, such as medicine and smartphones, are thriving

The Philippines : it is taking particular advantage of having English as one of its official languages to nurture the business process outsourcing industry. 





Robust performance of stock market index

The benchmark stock index in Manila hit its all-time high in July, while the key indexes in the other two VIP countries matched their year-to-date highs in September. This robust performance stands in sharp contrast to Tokyo, where it has fallen more than 10% since the end of December.





Growing spending power of consumers

A big draw for investors is the growing spending power of consumers in the VIP markets. With per capita gross domestic product in the three countries nearing the $3,000 threshold, more and more people are able to afford cars, home appliances and other big-ticket items. The Philippines and Vietnam, though well behind India in terms of population, each have nearly 100 million people. The middle classes in all three countries are expected to continue expanding for decades to come, with an nearly immeasurable impact on the economy.






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