From May 8, the China Trust Vietnam Opportunity Fund will continue to raise investment capital in Vietnam in Taiwan dollars. This is the fund’s fifth capital raise, with a total value of around NT$5 billion or US$163 million (VND3,824 billion). Following this capital increase, the fund’s total capital mobilization is about NT$16.5 billion, or USD 537.9 million (VND 12,616 billion).
By the end of the first quarter of 2023, the size of China Trust Vietnam Opportunity had grown to NT$22.78 billion (US$742.7 million), making it CTBC Investment’s second-largest international equity fund in China.
According to the fund, Vietnamese equities have risen by more than 4% this year, outperforming the ASEAN stock market. According to Zhang Chenwei, director of China Trust Vietnam Opportunity, following the completion of the first quarter business results report, most investors continued to wait for the stock market to reduce liquidity, resulting in ongoing selling pressure in heavy stocks.
In terms of the market forecast, Zhang Chenwei feels that Vietnamese equities remain volatile and weak since investor confidence has not been restored, but the medium and long-term economic outlook remains unchanged.
Vietnam has various benefits, according to China Trust Investment Trust, including robust GDP growth, low inflation, and a stable currency. Nonetheless, the rising economy has one of the most free trade agreements (FTAs) in the world. Most importantly, the EVFTA deal between Vietnam and the EU has recently entered into effect and promises to strengthen the Vietnamese economy significantly.
Vietnam’s economy progressed gradually at a rate of 6-7% per year until it met the “Covid-19” barrier. Prior to the pandemic’s devastating impact, Vietnam’s economic development slowed dramatically, but it remained one of the few countries with positive growth.
According to Zhang Chenwei, fund manager of China Trust Vietnam Opportunity Fund, Vietnam is on the same economic path as China and Taiwan, and the next ten years will be the golden era of the Vietnamese economy.