Fubon Financial Group launches Fubon FTSE Vietnam Fund
Fubon Financial Group launches Fubon FTSE Vietnam Fund
Taiwan-based Fubon Financial Group has just established an exchange-traded fund to capitalise on stocks listed on the Ho Chi Minh City Stock Market (HSX). Fubon FTSE Vietnam Fund will start raising capital on March 24.
Fubon FTSE Vietnam Fund will trade in the FTSE Vietnam 30 Index
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Yang Yining, the fund manager, said the new ETF will track the FTSE Vietnam 30 Index, which includes the 30 large-cap, long-listed and liquid stocks on the HSX.
Yang also expressed optimism about the Vietnamese equity market. At the end of 2020, the Vietnamese government set a target for socioeconomic development in 2021-2025 with an average annual GDP growth rate of 6.5-7 per cent and GDP per capita of around $4,700-5,000. If achieved, Vietnam will be one of the countries with the fastest GDP growth rates in the ASEAN region.
Besides, per capita income surpassing $2,000 is also supporting a thriving stock market, as seen in the case of South Korea, China, Japan, and Taiwan.
Vietnam's per capita GDP officially exceeded $2,000 in 2014, reached $2,715 in 2019, and increased to $2,881 in 2020.
Yang assessed that in the context of Vietnam successfully containing the pandemic, low interest rates, attractive stock valuations, and a number of preferential policies, the local stock market will lure more global capital inflows.
Previously, CTBC Investments, another prominent asset management firm in Taiwan, also launched CTBC Vietnam Equity Fund to cash in on the attractive local stock market in August 2020. Set to bridge the gap between Taiwanese investors and the Vietnamese financial landscape, CTBC Vietnam Equity Fund’s size is initially committed at $160 million.
