Brind.
Part of UOB released a survey identifying Singapore, Thailand, and Malaysia as attractive markets for investment.

How does the comparison of market valuations between Malaysia and Thailand affect Vietnam?

Vietnam's low valuation relative to Malaysia and Thailand may attract active investors. VinaCapital estimated Vietnam's 2026 forward price-to-earnings ratio at 12.7 times, which is lower than Thailand's 14.3 times and Malaysia's 14.9 times. This low valuation, combined with forecasts of 42.3 per cent earnings per share growth in 2026, could help draw active investors to the Vietnamese market.

Reported by 1 independent outlet Written Wednesday
Effect
Mild positive
How direct
Stated in the reporting
When
Within weeks
The story
No new developments lately

How it reaches Vietnam

Reported by news outlets

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The facts so far

As reported. Each one links to where it comes from.

  • VinaCapital estimated Vietnam's 2026 forward price-to-earnings ratio at about 12.7 times.vietnamnews.vn
  • Thailand's 2026 forward price-to-earnings ratio was estimated at 14.3 times.vietnamnews.vn
  • Malaysia's 2026 forward price-to-earnings ratio was estimated at 14.9 times.vietnamnews.vn
  • VinaCapital forecast earnings per share growth of 42.3 per cent in 2026 for Vietnam.vietnamnews.vn

Why it matters

Vietnam's market valuation is a key factor in attracting international capital, especially as the country enters FTSE Russell’s Secondary Emerging Market category. While a low valuation creates an attractive entry point, analysts caution that it is not enough to drive a sustained re-rating; active investors will also look for durable earnings and cash flow across a broader range of sectors.

Regionally, Vietnam is competing with established markets like Thailand and Malaysia for international investment flows. The FTSE upgrade gives Vietnam access to a much larger pool of international capital, but it also places the market in a more demanding competition against other emerging markets in Southeast Asia.

What we don't know yet

  • Will earnings growth broaden beyond a small group of large-cap companies to support a sustained re-rating?
  • How will market liquidity and the global interest-rate and currency environment affect foreign inflows?

What would change this answer

Earnings growth broadens across banks, manufacturing, consumer businesses, technology, logistics and infrastructureThis would help narrow Vietnam’s valuation discount against regional peers, making the positive effect of the low valuation more certain and stronger.
Global interest-rate yields remain highThis could limit the inflow of foreign capital, causing the positive effect of the low valuation to fade.

— Other considerations

Beyond this explainer

Questions worth asking

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  • About Price-to-Earnings Ratio

    Given the focus on overall market valuation, how do the P/E ratios of specific sectors within Vietnam compare to those in Thailand and Malaysia?

    Explore Price-to-Earnings Ratio

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Price-to-Earnings RatioVietnamSoutheast AsiaEarnings Per ShareCash Flow

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Reporting

Keep going

The full eventVietnam Enters FTSE Russell Secondary Emerging Market Category Everything aboutVietnam

Brind's analysis is written by AI from the reporting linked above and can be wrong. It is not investment advice; do your own research.