Vietnamese stocks end the week with a hattrick of positive returns

Vietnamese stocks end the week on a high note as the VN-Index, the country's benchmark index gained 1% in the last three days. The liquidity in the market also improved, with investors pouring in around US$527.6 million into the southern bourse, a sign of the return of investors' risk appetite. At 1,352.64 points, the index is now at its highest since the market dip in August 19.

The VN30-Index, tracking 30 biggest stocks in market capitalization on the Ho Chi Minh Stock Exchange (HoSE), followed suit with 0.43% gains on Friday, mostly influenced by the rise in highly weighted bank stocks such as Vietnam Prosperity Joint Stock Commercial Bank (VPB, +3.08%), Vietnam Technological and Commercial Joint Stock Bank (TCB, +1.32%) and Tien Phong Commercial Joint Stock Bank (TPB, +5.56%). Other large-cap stocks in the manufacturing sector contributed.

Vietnam is often regarded as a potential replacement for China as a premier destination for outsourced manufacturing. It may look a bit far-fetched today, but Vietnam provides the basic investment settings of cheap input costs, stable politics, and increasingly liberalized trade and investment policies.

To take advantage of the possible market boom, investors can gain exposure to Vietnamese equities through ETFs. Options like VanEck Vectors Vietnam ETF (VNM) and Xtrackers FTSE Vietnam Swap UCITS ETF (XFVT) have already attracted hundreds of millions of dollars in inflows and will probably continue to flourish with Vietnam's promising economy.

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