During the May Day holiday, an unexpected fund became a hot search, that is, Tianhong Vietnam Stock A. We see that the fund's performance yield in the past three years is close to 50%, especially since January 2021, which has risen rapidly.

During the May Day holiday, an unexpected fund entered the hot search, that is, Tianhong Vietnam market stocks A(QDII)(F008763)

We see that the performance yield of this fund in the past three years is close to 50%, especially since January 2021, it has risen rapidly. Coupled with the pullback of A shares during this period, this fund is eye-catching.

We see that the share of this fund is also rising. Net assets rose from 366 million at the end of 2020 to 2.326 billion, an increase of up to 535%

So why is Vietnamese funds popular? Judging from the Vietnam Ho Chi Minh Index, the index has actually been very strong.

The stock market is the barometer of the economy. Let’s take a look at the trend of GDP in Vietnam, and it still maintains a relatively fast growth rate.

What are the reasons for Vietnam’s economic development and people’s optimism? It is mainly divided into the following points:

1, Vietnam has always been following China's development path, and China is the future of Vietnam.

Many people say that Vietnam is now like China in the past Reform and opening up, with cheap labor and talent resources being developed rapidly. People apply China's path to Vietnam and give high expectations.

2. Industrial transfer is accelerated.

Review the history of industrial transfer in history:

The first industrial transfer was in the early 20th century, when Britain transferred to the United States, did not fall on fell on , and Wall Street rose.

The second industrial transfer occurred in the 1950s. The United States transferred to defeated countries such as Japan and Germany. Japan and Germany developed rapidly. Low-value labor-intensive industries transferred to Taiwan, Hong Kong, South Korea and Singapore in Asia, achieving the four Asian dragons ;

The third industrial transfer occurred in the 1980s. my country implemented reform and opening up, and various global industries transferred to emerging economies . my country relied on the largest labor force, the vastest region and resources, and the high-quality talents that developed rapidly after the college entrance examination reform, becoming the core of the third industrial transfer in one fell swoop.

At present, China and the United States are in a battle between two heroes. The national destiny line is developing towards the intersection. It will inevitably lead to the emergence of some contradictions and changes in the pattern. The rise in labor costs in my country and the emphasis on environmental protection may trigger the fourth industrial transfer, toward inland or other countries in the Asia-Pacific region, and Vietnam is one of the rising stars.

is the most common one. We see that Adi and Nike sold in the mall are basically Made in Vietnam.

Is Vietnam really that good?

is not exactly the case. labor costs have increased significantly, and rents have become more and more expensive. Especially Vietnam's per capita GDP is only slightly more than one-quarter of China's, and the per capita monthly income of Ho Chi Minh City is only about 3,000 yuan, but the rents of some popular plots are already comparable to those of Beijing, Shanghai, Guangzhou and Shenzhen. Vietnam's infrastructure also faces great challenges. In Vietnam, land is owned by individuals and can be traded freely. The government lacks land sales income and is even more unlikely to efficiently acquire and demolish land.

Under the background of China's domestic circulation, coastal enterprises are migrating to the mainland, and Vietnam's real competitor is inland provinces. But no matter what, we cannot be careless or underestimate ourselves. We should pay more attention to China's forward-looking layout and have a future. However, as part of the asset allocation and in more emerging markets, it is still worth looking forward to diversifying risks and increasing part of the returns.

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Disclaimer:

Name: Si Weijie Shenwan Hongyuan Investment Consultant

Practice Certificate Number: S0900621080011

The information and opinions contained in this article represent personal opinions only and are for reference only and do not constitute investment advice. The targets involved are not recommended.I am not responsible for any losses caused, and investors must be responsible for the investment behaviors decided independently. The stock market is risky, so be cautious when investing.