The past few years have been interesting for global markets, to say the least, and it’s unlikely that 2023 will be any different. As such, the best countries to invest for 2023 are ones with a longstanding record of growth and stability.
We’re going through a period of rapid change, and it’s now more important than ever to diversify your portfolio internationally.
Oftentimes, people will ask “are we about to enter a recession?”. The answer to that question depends on which country you live and do business in.
Rising interest rates are prevalent worldwide and borrowing costs will continue soaring well into 2023. Meanwhile, inflation will play a major role in which countries you’re able to effectively invest in.
Yet not every place will be affected in the same way – or to the same degree. Each country’s inflation rate is different while supply chain disruptions aren’t as prevalent in some parts of the world.
Several emerging markets in Southeast Asia have a long history of avoiding recessions. In fact, two of the countries on our list haven’t had a recession for over 25 years.
The five countries we’ll cover in this article don’t all share the same benefits. Nowhere is 100% perfect and we recommend each market for a different reason. The perks of investing in a stable, developed economy such as Singapore aren’t the same as if you’d invest in Vietnam, for example.
With that said, each of the markets listed below can claim a multi-decade history of outperformance in the face of global economic uncertainty.
VIETNAM
It’s common knowledge that China’s economy is slowing down. This trend will continue in 2023, and Vietnam will be a major beneficiary of its larger neighbor’s loss.
Part of the reason why Vietnam stands to gain from China’s capital flight is that they share a border. This makes it easier to relocate supply chains compared to the Middle East or Latin America, for example.
Moving your business from China to Vietnam doesn’t come with the same logistical, cultural, or financial difficulties compared to the alternatives.
Plus, Vietnam is significantly cheaper and easier to do business in than most its competitors – especially in the manufacturing sector. That’s why Samsung, LEGO, Adidas, and dozens of other multinational firms are setting shop here.
Keep in mind that buying property isn’t the best way to invest in Vietnam since you can’t buy land on a freehold basis. Or for that matter, any structure that sits on the land such as a condo unit or house.
That’s because every title in Vietnam is on technically a long-term lease from the government. Meanwhile, foreigners can only own land rights for 50 years at a time. The sole exception is for embassies and diplomatic institution which can lease land for 99 years.
Several years back, there were proposals for Vietnam to extend the leasehold period to 100 years or longer. It appears these talks have quietly gone away, meaning you should expect Vietnam’s land ownership rights to stay difficult.
Vietnam is a great place to invest. However, you probably shouldn’t buy real estate here – consider focusing on business opportunities here instead.
Besides flying to Southeast Asia and either opening a brokerage account or starting a business in Vietnam, the easiest ways to invest in Vietnam is through an exchange traded fund (ETF).
The two largest Vietnam ETFs are Vietnam Enterprise Investments Limited (LON:VEIL) which is traded in the United Kingdom, and Vaneck Vectors Vietnam (NYSEARCA:VNM) in the United States. Each of these ETFs provides broad (but not strategic) exposure to Vietnamese equities.
You can read about the other 4 countries in this list HERE
Source: CCIPV / INVEST ASIAN