Emerging Markets Recovery: Vietnam as a Strategic Investment Hub

Strategists from Goldman Sachs, Lazard, and RBC expect emerging markets to enter a multi-year growth cycle by 2026, according to a report from the Vietnam News Agency citing La Stampa. This recovery stems from attractive valuations, a weaker US dollar, and economic growth prospects that exceed those of the US market.

Why are emerging markets entering a new growth cycle?

A combination of lower valuations and a softening US dollar is driving a recovery phase for emerging economies. According to analysts from Goldman Sachs, Lazard, and RBC, these factors create a window for a sustained growth cycle starting in 2026.

Experts note that the era of broad, blanket investments across all emerging markets is ending. International capital is now prioritizing countries that can combine technological innovation with sustainable growth and deep integration into global supply chains.

Did You Know? International investors are increasingly targeting Vietnam’s strategic minerals, including rare earth elements, to meet the needs of high-tech industries and the digital economy.

What makes Vietnam a strategic investment hub?

Vietnam has emerged as a primary target for capital restructuring as high-tech and manufacturing firms shift their operations into Southeast Asia. According to experts, this shift is a direct result of global supply chain relocations.

Long-term growth in Vietnam is supported by the expansion of digital infrastructure and the energy transition. Analysts expect increased capital flows into digital technologies and the development of data centers.

Expert Insight: Samantha Carter notes that the “divergence” mentioned by strategists means the risk of passive investing has risen. Investors can no longer rely on a rising tide to lift all emerging boats; success now depends on granular, fundamental analysis of individual national economies.

How are India and East Asia driving regional growth?

India is projected to maintain strong momentum with an expected GDP growth rate of approximately 7% in 2026. Experts attribute this trajectory to India’s young population and robust domestic purchasing power.

Goldman Sachs' Greg Calnon talks investing opportunities in 2026

In East Asia, the rapid expansion of artificial intelligence (AI) is fueling demand for semiconductors. This trend is providing significant growth impulses for Taiwan (China) and South Korea, according to the report.

What happens next for international capital?

Future investment effectiveness may depend on the ability of investors to select specific markets based on fundamental factors. Because economies are diverging, a one-size-fits-all approach is likely to be less effective.

Capital is expected to flow toward nations that successfully integrate into the high-tech supply chain. This could result in concentrated growth in sectors like semiconductor production and digital infrastructure across the Asian region.

Frequently Asked Questions

What factors are driving the recovery of emerging markets?
According to strategists from Goldman Sachs, Lazard, and RBC, the recovery is driven by attractive valuations, a weaker US dollar, and superior economic growth prospects for 2026.

Why is Vietnam attracting international investors?
Vietnam benefits from the relocation of global supply chains, particularly from high-tech and manufacturing companies, alongside its focus on digital infrastructure, energy transition, and strategic minerals.

What is the economic outlook for India in 2026?
India is expected to see a GDP growth rate of around 7% in 2026, supported by its young population and strong internal purchasing power.

Which of these emerging markets do you believe offers the most stability for long-term investment?