“We expect Vietnam to be a relative outperformer among emerging markets in Asia over the next five years,” said Mark Mobius, PhD, executive chairman of the company on October 19 at a meeting with current and potential shareholders in Ho Chi Minh City.
Mobius said the formation of the Association of Southeast Asian Nations (ASEAN) economic community on January 1, 2016 will bring 10 economically diverse Southeast Asian countries together into a single economic organization.
It represents another strand of reform in which more technologically advanced emerging economies are becoming increasingly interconnected with less-developed neighbours who possess resources of low-cost labour and commodities, to the potential benefit of both groups.
The reform measures have had some short-term costs, but we believe that the Vietnam government will continue to succeed resulting in longer-term benefits that will soon begin to feed into greater economic growth figures.
The emphasis on market discipline should also create a closer correspondence between the Southeast Asian nation’s emerging-market growth and corporate profitability.
“We expect to see robust economic growth in Vietnam that will provide our shareholders with significant gains,” said Mobius.
The company has been investing in businesses in Vietnam since 1996 Mobius said citing it currently has invested heavily in Huy Vietnam Food Processing Co Ltd, which owns roughly 100 restaurants under the brand names of Pho Ong Hung, Mon Hue and Com Tho Chay.
It has also placed about US$200 million into the pharmaceutical, consumer goods and manufacturing industries as well as Vietnam National Oil and Gas Group (PetroVietnam) and affiliates.
Mobius applauded the government’s move to step up the equitisation of state-owned enterprises saying it provides the impetus for strong development of the private sector and should fuel stock market growth.
A US born German citizen who holds a PhD from the Massachusetts Institute of Technology, Mobius currently directs the Franklin Templeton Investments research team which is based in 18 global emerging markets offices and manages emerging markets portfolios.
Mobius said the formation of the Association of Southeast Asian Nations (ASEAN) economic community on January 1, 2016 will bring 10 economically diverse Southeast Asian countries together into a single economic organization.
Executive Chairman of US-based Franklin Templeton Emerging Markets Group Mark Mobius (R)
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The reform measures have had some short-term costs, but we believe that the Vietnam government will continue to succeed resulting in longer-term benefits that will soon begin to feed into greater economic growth figures.
The emphasis on market discipline should also create a closer correspondence between the Southeast Asian nation’s emerging-market growth and corporate profitability.
“We expect to see robust economic growth in Vietnam that will provide our shareholders with significant gains,” said Mobius.
The company has been investing in businesses in Vietnam since 1996 Mobius said citing it currently has invested heavily in Huy Vietnam Food Processing Co Ltd, which owns roughly 100 restaurants under the brand names of Pho Ong Hung, Mon Hue and Com Tho Chay.
It has also placed about US$200 million into the pharmaceutical, consumer goods and manufacturing industries as well as Vietnam National Oil and Gas Group (PetroVietnam) and affiliates.
Mobius applauded the government’s move to step up the equitisation of state-owned enterprises saying it provides the impetus for strong development of the private sector and should fuel stock market growth.
A US born German citizen who holds a PhD from the Massachusetts Institute of Technology, Mobius currently directs the Franklin Templeton Investments research team which is based in 18 global emerging markets offices and manages emerging markets portfolios.
