Vietnam Enterprise Investments sees strong earnings outlook for 2026

Vietnam Enterprise Investments Limited (VEIL), the London-listed fund managed by Dragon Capital, issued a forecast in London this week predicting a robust surge in corporate earnings for Vietnamese companies through 2026. The investment vehicle, which tracks the performance of the Ho Chi Minh City Stock Exchange, anticipates that the nation's economic resilience and increasing foreign direct investment will drive significant double-digit growth for its core portfolio holdings over the next two fiscal years. This optimistic outlook is rooted in Vietnam's stabilizing inflation rates and the government's aggressive infrastructure spending, which are expected to bolster the domestic private sector. Market analysts at Dragon Capital highlighted that the current valuation of the Vietnamese market remains attractive relative to its regional peers in Southeast Asia. The fund, which holds significant stakes in the banking, real estate, and retail sectors, notes that the anticipated earnings growth is not merely a recovery from previous market volatility but a structural advancement. Specifically, the banking sector is expected to benefit from widened credit growth margins, while the retail sector anticipates a boost from a recovering consumer base and a burgeoning middle class. Furthermore, the long-term outlook for 2026 is supported by Vietnam's strategic positioning within the global supply chain, often referred to as the 'China Plus One' strategy. As international manufacturing giants continue to relocate facilities to provinces like Bac Ninh and Dong Nai, the ripple effects on local logistics and industrial service providers are becoming more pronounced. VEIL suggests that if current fiscal policies remain supportive, the Vietnamese equity market could see a substantial re-rating by international institutional investors, potentially leading to an influx of liquidity as the market moves closer to emerging market status.