Vietnam’s Economic Ascent: A Targeted Investment Opportunity

VanEck Vietnam ETF US92189F8178

For international investors seeking exposure to Southeast Asia's most dynamic economy, the VanEck Vietnam ETF (VNM) stands as the primary vehicle. With approximately $639 million in assets under management, it is the largest US-listed exchange-traded fund dedicated solely to the Vietnamese market. The investment thesis is anchored by the government's ambitious economic targets, including a goal for double-digit GDP growth of at least 10% in the 2026 fiscal year.

The fund has entered 2026 with positive momentum, gaining roughly 2.5% year-to-date and nearly 7% over the past three months. This strength is supported by solid fundamentals: foreign direct investment rose by 8.9% to $23.6 billion by the end of 2025, with a growing focus on high-tech sectors like semiconductors and robotics. Current trading activity indicates robust demand, with the ETF trading at a premium of about 0.6% to its net asset value (NAV), suggesting forward-looking investor positioning. A key near-term resistance level is seen around $19.50, close to its 52-week high.

The most significant potential catalyst for the Vietnamese market this year is scheduled for September: a possible upgrade from Frontier to Secondary Emerging Market status by index provider FTSE Russell. Such a reclassification would trigger automatic capital inflows from funds tracking that index and further enhance market liquidity.

A Concentrated Portfolio Strategy

The ETF employs a focused strategy, investing heavily in the nation's largest and most liquid companies. Its top ten holdings constitute over 57% of the portfolio. Leading the allocation are real estate giants Vinhomes (9.94%) and Vingroup (9.80%), which are direct beneficiaries of state-driven infrastructure initiatives and a revitalized domestic demand. Collectively, the real estate sector accounts for almost one-third of the fund's allocation.

The financial sector forms the second pillar with a 27% weighting. Positions in firms like SSI Securities Corporation and Vietcombank reflect strong credit growth and the increasing professionalization of the local capital markets. The opening of the International Financial Centre in Ho Chi Minh City this year is expected to accelerate this trend further.

Outlook and Key Considerations

Against this backdrop, the VanEck Vietnam ETF remains the go-to instrument for direct participation in Vietnam's growth story. Its focus on locally listed companies provides a more concentrated exposure compared to broader regional indices. The upcoming index review in March and the concrete implementation of the government's investment program will be critical factors shaping its price direction in the coming months.