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Funding trusts make up round a 3rd of the FTSE 250, giving buyers dozens of various wealth-building alternatives.
Vietnam Enterprise Investments Restricted (LSE:VEIL) is definitely completely different. Because the identify suggests, it focuses on investments within the rapidly-growing economic system of Vietnam in Southeast Asia.
Whereas this single-country focus makes it very area of interest, Vietnam Enterprise has delivered stable efficiency. It has generated annualised returns of round 11% since itemizing in 2016, together with a 30% leap previously 12 months.
Wanting ahead to the subsequent few years, I reckon it might proceed compounding returns for shareholders. Right here’s why.
Why Vietnam?
Vietnam’s economic system has been rising very strongly for a few years now, pushed by fast financial growth and modernisation. However in Q3 2025, it grew by 8.23%, the quickest quarterly tempo in over a decade (excluding the post-Covid rebound).
This established Vietnam because the fastest-growing economic system in Southeast Asia for the interval. And full-year development is projected to be round 8%, which is outstanding contemplating all of the uncertainty and disruption brought on by President Trump’s tariffs.
That mentioned, the IMF initiatives development slowing to round 6% to six.5% subsequent yr as a consequence of US tariffs. Nonetheless, that’s very robust, making Vietnam a gorgeous funding proposition, in my view.
Additionally, in October 2025, FTSE Russell formally reclassified Vietnam as a ‘Secondary Emerging Market’. Will probably be formally added to the FTSE Rising Index subsequent yr, ending Vietnam’s standing as a frontier market.
Over the subsequent few years then, this could see a big quantity of capital move into the Vietnamese inventory market. The belief says attaining rising market standing locations Vietnam “firmly on the worldwide stage, giving it entry to bigger institutional buyers“.
Why this belief?
The belief manages a portfolio of round 48 Vietnamese shares price roughly £1.45bn. It pursues a ‘barbell’ technique of “concentrating on high-conviction blue chips while incubating smaller growth names…that capture emerging opportunities in Vietnam’s economy”.
The blue chips embrace banks and property corporations whereas the expansion companies are ones the managers consider might turn into tomorrow’s home market leaders (pharmaceutical corporations and brokerages, for instance).
Regardless of the robust 12-month efficiency, the inventory nonetheless trades at a 13% low cost to its web asset worth (NAV). Nevertheless, the hole has been narrowing, suggesting rising investor confidence within the belief’s prospects.
Prime 5 holdings:
Sector WeightingCellular World Funding CorpShopper electronics 7.2%Vinhomes JSCActual property 6.6%Vietnam Technological and Business Joint Inventory Financial institutionBanking 6.3%FPT CorpKnow-how 5.1%Viet Nam Joint Inventory Business Financial institution for Trade and CommerceBanking 4.9%
Dangers to remember
One danger I see right here is that the portfolio is closely uncovered to Vietnamese actual property and banks. Whereas these sectors ought to naturally proceed to profit from the booming economic system, additionally they may run into bother sooner or later (as occurred with China’s property market).
Additionally, the fund’s holdings are priced in Vietnamese dong however its portfolio is valued and reported in US {dollars} (and UK buyers will purchase shares in kilos). So forex fluctuations can negatively or positively influence efficiency.
Vietnam is simply getting stronger
We stay optimistic heading into 2026, supported by wholesome financial institution fundamentals, robust housing demand, and Vietnam’s advancing reform and capital-market momentum.
Vietnam Enterprise Investments Restricted
On stability although, I view this FTSE 250 belief as a superb option to contemplate getting Vietnam publicity.
The nation is not simply doing low-cost manufacturing (footwear, clothes, and so on). It’s more and more capturing high-value electronics and know-how sectors that China is shedding as a consequence of pricing or commerce tensions.
