Buying opportunity in Vietnam fund?

T

thomsk

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Vietnam's economy, as some people may know, has took a huge knock recently. I am wondering whether anyone on AAM views on the Vietnamese fund VOF? It has fallen in price by about 35-40% in one month alone!
I am tempted to buy at this cheap price, as a long term investment- but am not sure whether it has strong enough credentials. All I know is that Vietnam has big inflation problems ( and I heard something about a dam being faulty?).
Does anyone have much knowledge on Vietnam markets, or bought this fund?


http://uk.finance.yahoo.com/q?s=VOF.L
 
and I heard something about a dam being faulty?).

what does this have to do with anything?
 
A big hydroelectric dam was built to provide electricity to thailand, I think. From what I can gather, it was built by Russians who are said to have cut corners.
The dam gates were kept closed for weeks, when they were due to open. There has been an investigation ongoing into the water in the river being contaminated, and making locals become ill.
Vietnam's economy is heavily reliant on fish exports. Cos the dam was closed - no fish to catch = no money!
I am not definite of all of this - the snippets of news I can gather seem to be like the water ( mirky ).
Food prices/ overheating economy have been causing big inflation problems - of that I'm pretty sure.
However, for many economists say Vietnams LONG TERM future prospects are very good. Large, young educated workforce who are grafters and work for less wages than the Chinese.
 
Fair play to you. You are doing some great background analysis/research on this investment anyway.
 
Here are some other pointers. Worth watching the fund - thing is when to buy?? It's dropping like dead flies! Is this pure panic, I wonder. If so, could pay off as a great buy, as it says in the report "asian markets oversold!"



and some discussion on the fund...

http://www.iii.co.uk/investment/detail?code=cotn:VOF.L&display=discussion&it=le

Oh, and one further article....( explains the potential offered in Vietnam )

http://www.telegraph.co.uk/money/ma...008/06/04/cnviet104.xml&DCMP=EMC-mcn_04062008
 
No - not yet. But it looks like $2 may be the level for adjustment/ resistance. Don't usually like catching a falling knife but 40 % off in a month definitely seems oversold.
I suspect there has been major panic going on - and as Warren Buffet says... buy when others panic !! ;)
Miss the boat otherwise.
I think I'll drip - feed a few quid in over coming months/ weeks and forget about it for 10 years..
 
tribal said:
have you any investments already?
Click to expand...

thomsk said:
No - not yet.
Click to expand...

Thomsk - you quote Warren Buffett in your post above. Buffett has also said the following...

I have 2 views on diversification. If you are a professional and have confidence, then I would advocate lots of concentration. For everyone else, if it’s not your game, participate in total diversification. The economy will do fine over time. Make sure you don’t buy at the wrong price or the wrong time. That’s what most people should do, buy a cheap index fund and slowly dollar cost average into it. If you try to be just a little bit smart, spending an hour a week investing, you’re liable to be really dumb.
Click to expand...
 
markets can keep falling a lot longer than we can remain solvent. dont assume a 40% selloff is over done. vietnam has terrible inflation and lots of other economic problems. to be honest if its your first investment then i would start with a diversified global equity fund, rather than just focusing on one very unstable country.
 
Guys - I know about diversification being the name of the game, and I do diversify.
Only, I do not own anything substantial in the way of volume in Vietnam shares. This would be another way to diversify ( not my lifesavings, understand !)
I simply view it as a long-term punt, and if it shows some evidence re-pricing around $2 ( which again, today, it seems to be doing ) then I will start buying into this fund pretty soon.
Only a few years ago, if someone said they were going to invest in the BRIC countries, many others would have said " Oooohhhh! They're risky, they are. Inflation/ poor economies/ corruption/ communist..etc,etc. Ooohh, no - stay away from them and invest in uk and Irish banks ( much safer bet - listen to me !)". Ha.
 
how do you diversify if you dont have any investments already?
 
thomsk said:
Guys - I know about diversification being the name of the game, and I do diversify.
Only, I do not own anything substantial in the way of volume in Vietnam shares. This would be another way to diversify ( not my lifesavings, understand !)
I simply view it as a long-term punt, and if it shows some evidence re-pricing around $2 ( which again, today, it seems to be doing ) then I will start buying into this fund pretty soon.
Only a few years ago, if someone said they were going to invest in the BRIC countries, many others would have said " Oooohhhh! They're risky, they are. Inflation/ poor economies/ corruption/ communist..etc,etc. Ooohh, no - stay away from them and invest in uk and Irish banks ( much safer bet - listen to me !)". Ha.
Click to expand...
No offence but judging by your posting history in you seem to be perpetually in search of the next big get rich quick opportunity!
 
Ha - yes guilty of that to some extent. Must admit, it does seem I'm like that - but I keep the more adventurous postings to this site !

Don't really see the point in asking " has anyone considered investing in Mcdonald's/ Gillette/ Rio Tinto/ Microsoft, etc " which are the safer options.

Still, I am in no rush for Vietnam. But, will still go for it....soon !

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=alYVk7yW0GEc
 
vietnam increased interest rates today to the highest in asia and let their currency fall. not a good time at all to be investing there
 
what a comment

Ahmadinejad declared on Monday that Israel “has reached its final phase and will soon be wiped out from the geographic scene.”
 
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