 Vietnam’s export story has turbo-charged the domestic  market, which recently exceeded USD1bn a day in turnover   Potential EM inclusion creates buzz, but inflows might be less  than expected as funds have already bought Vietnam stocks   Valuations are low versus history and compared to ASEAN; we highlight four stocks covered by our equity analysts Resilient earnings, valuations low. Vietnamese earnings have been remarkably resilient in the past few years, growing even in 2020 when COVID-19 hit. EPS growth  was 35% in 2021 although we expect that to moderate to 28% in 2022e and 20% in  2023e, led by Financials and Real Estate. Vietnam trades at 13x PE, one standard  deviation below its five-year average, leaving it at a discount to ASEAN counterparts.

And daily trading recently crossed the USD1bn mark, 10x the level two years ago,  which makes it the second-most liquid market in ASEAN after Thailand.