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Bill Gross likes Asia and Vietnam is recovering fast (VNM, USO, RJA, DBA)

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PIMCO head Bill Gross is encouraging investors to look at Asia, where countries such as Vietnam are starting to recover, with the exchange-traded fund, Market Vectors Vietnam ( VNM , quote ), up almost 4% for the week.

Like so many other countries, Vietnam (VNM) suffered during the credit crunch as once-affordable monetary policies became unsustainable burdens. But changes have the country turning around. At this stage, it is cheap, very cheap.

According to an article in Money Week about the Vietnamese stock market by Cris Sholto Heaton, "Depending on what estimates you use, the VN Index is on around seven to nine times forecast 2011 earnings and six to eight times forecast 2012 earnings. There aren't many markets on those kinds of valuations."

Now around $16, the high for the past 52 weeks for the Market Vectors Vietnam ETF is almost 30. Obviously, there is tremendous upside. With a population of around 90 million, the gross domestic product of Vietnam is around $280 billion with a per capital gross domestic product or around $3,100.

A Goldman Sachs ( GS , quote ) report projects that Vietnam will be the 17th largest economy in the world by 2025, with a gross domestic product of $436 billion and a per capita gross domestic product of $4,357.

The population of Vietnam is around 90 million with a labor force of over 46 million. Major imports and exports include oil ( USO , quote ), rice ( RJA , quote ) and other agricultural goods ( DBA , quote ).

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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