Vietnam Emerging Market fund soars on market rally

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Vietnam’s stock market has been one of the best performing markets in the region this year, helping boost the performance of the Vietnam Emerging Market Fund, which gained 9.13% in April.

The recent run up can be attributed to several factors: a stabilising currency, slowing inflation (expected at around 10% this year, compared with 18.58% last year) and efforts by the government to bring down interest rates, according to portfolio manager Nguyen Hoai Thu. The country’s trade deficit is also narrowing while overseas remittances are on a steady uptrend, which is helping the Vietnamese government build up