The recently concluded Middle East Investment Summit provided a forum for a number of senior local banking and investment companies to learn more about how the Vietnam stock market offers long-term advantages for investors, as the government prepares a new round of reform initiatives designed to revitalise the development of its capital markets.

Kevin Snowball, CEO of PXP Vietnam Asset Management (PXP), one of the participants in the summit, said the Vietnam has been one of the fastest growing economies in Asia, with HCM City, home to over seven million people, recognised as its commercial hub. Trade between the UAE and Vietnam exceeded $24m in 2010.

"Vietnam is one of the very few markets offering significant potential for superior returns in times of deteriorating global macroeconomic conditions,” he said. "We would not be surprised to see the Vietnamese market double within three years, potentially trebling in five. It will be investors with this kind of long-term perspective who will realise the advantage.

"The Vietnam equity market is currently suffering from the uncertainty created by the likely level of non-performing loans within the banking sector. But PXP Vietnam is advising clients to look beyond the uncertainty and see the opportunity. The fact that the authorities have recognised the problems is a positive thing; it is a first step to their resolution and we anticipate progress to be made towards firm and decisive action during the current month-long meeting of the National Assembly, due to conclude on November 21…

"In summary, the market is nervous due to the current uncertainty but the country should ultimately benefit from decisive action to improve the macroeconomic environment, and therein lies the opportunity. Long-term bulls should be taking advantage,” concluded Snowball.