When it comes to developing markets, Vietnam, which ranks among the world's top 20 fastest-growing economies this year, is increasingly recognized by global investors as a key investment destination within developing markets, particularly due to its recent strides in regulatory improvements.

Notably, the upcoming removal of prefunding requirements from November 2nd is expected to be a crucial step for Vietnam to achieve Emerging Market status. This change facilitates easier market access for international investors, aligning the country further with global standards, as highlighted in the recent FTSE Country Classification Update.

As Vietnam's economy and financial market maintain their stable development, various sectors such as domestic consumption, manufacturing, and technology, offer significant potential for growth, attracting attention from both institutional and retail investors.

Many professional investors across Europe diversify, but where are they looking next for real growth? In this article, we pull some insights from the latest report by the Investment Research Group, Finland's official fund database, to paint a picture of the country's investment environment as well as general trends that reflect a growing interest from European institutional investors in emerging economies.

As an asset manager with roots in the Finnish investment landscape, Kenno also aims to provide those among our readers who are not yet familiar with emerging markets with a glimpse of Vietnam— a Southeast Asian country with stable geopolitics, a thriving economy, and a developing stock market that offers high growth potential at a reasonable price.