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VOF sees long term boost from TPP

07 October 2015 14:43

Vietnam Opportunity Fund Limited believes Vietnam stands to benefit tremendously when the Trans-Pacific Partnership is ratified.

Vietnam is one of 12 countries - along with United States, Canada, Singapore, Brunei, Japan, Australia, Malaysia, New Zealand, Mexico, Chile and Peru - which reached a consensus on Monday on the terms of the agreement following several years of negotiations.

The sweeping trade pact will create a free trade zone making up 40% of the global economy and 30% of global trade.

VOF says: ""hile the agreement faces several hurdles ahead, once ratified, Vietnam will stand to benefit tremendously."

VOF has positions in Vinatex (1.1% of NAV), Vietnam's largest textile and garment manufacturer, and Danang Rubber Company (1.6%), a leading domestic tyre manufacturer which will benefit directly from the short term impacts of the TPP through the potential reduction of tariffs and increasing competitiveness of its exports.

Coupled with the Government's recent announcement to progressively lift foreign room limits on stocks, there could be sufficient momentum to lead to an overall market re-rating.

At 2:43pm: (LON:VOF) VinaCapital Vietnam Opp. Fund Ltd share price was +0.03p at 2.44p

Story provided by StockMarketWire.com

Related Company: VOF

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