After nearly doubling in value during the early part of 2007, the Ho Chi Minh Stock Exchange (HOSE) lost roughly 68% of its value during the following 15 months and the losing streak is not likely to reverse itself any time soon. The Wall Street Journal recently reported:"A further concern is corporate earnings, expected to slump this year after several years of strong growth. Thomas Lanyi, director of the $100US million Azalea Fund, run by Ho Chi Minh City-based Mekong Capital, reckons most Vietnamese companies will suffer "huge losses" this year."
Vietnam PE ratios have fallen so much, from 35 to 40 times earnings down to just 5 to 10 times earnings, that bargain hunters are "cherry-picking" stocks that they believe will rise during the next upswing. Attractive stocks cited by investors in the article include Tan Tao Industrial Park (ITA. Vietnam), the nation's largest owner-manager of industrial parks; Vinamilk (VNM. Vietnam), the country's largest dairy producer; and Pha Lai Thermal Power (PPC.Vietnam), an owner of a power distribution network and a coal mine.