Investors bet on Vietnam even as valuations top Southeast Asia

(Dec 27): Vietnam stocks are pricier than their Southeast Asian peers for the first time in two years -- and they are about to become more expensive.

“There is room to grow,” said Dominic Scriven, Ho Chi Minh City-based Chairman at Dragon Capital. “We are looking for 19% net growth for earnings next year,” as the economy expands and inflation remains stable, he said.

The benchmark VN Index is trading 15.9 times earnings, compared with the MSCI South East Asia Index which is at 14.7. A 15% gain in the VN Index has led to its outperformance versus the MSCI Frontier Markets Index and the South East Asia benchmark gauge. The gauge rose 0.3% as of 9.34am local time on Tuesday.

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