2 ETFs to consider as Vietnam’s digital economy grows in Q1


Jhe role of the Internet has been vital to the global economy, especially during the pandemic. With increased reliance on this digital economy, it is expected to breathe life into emerging market (EM) economies such as Vietnam.

“According to the ministry, the digital economy is composed of the digital economy of information and communication technologies (ICT), the digital economy of the Internet and the digital economy of industries,” notes a report from OpenGovAsia. “In the first quarter of this year, the growth rate of the Internet digital economy was 28%, reaching $8 billion in revenue.”

“The ICT digital economy and the industrial digital economy each recorded average revenue growth rates of around 15%,” the report adds. “At the end of February, the number of newly created digital technology companies reached 65,329, an increase of 487 companies compared to 2021.”

As the digital economy continues to propel Vietnam’s growth, exchange-traded fund (ETF) investors can look into the Global X MSCI Vietnam ETF (VNAM) as a potential opportunity. VNAM seeks to provide investment results that generally correspond to the MSCI Vietnam IMI Select 25/50 Index, which is designed to represent the performance of the broad universe of Vietnamese equities while including a minimum number of constituents, as defined by MSCI, Inc.

Effect of e-commerce on EM

For a broader play on the growing role of the digital economy in emerging markets, investors can watch the Global X Emerging Markets Internet & E-Commerce ETF (EWEB). EWEB seeks to invest in companies positioned to benefit from the increased adoption of Internet and e-commerce technologies in emerging markets.

EWEB offers investors:

  • High growth potential: By 2025, it is predicted that 70% of the world‘s population will have a mobile Internet subscription, with new subscribers coming mainly from emerging markets.
  • New consumer preferences: The pandemic has forced many businesses to offer goods and services online for the first time, changing consumer expectations and expanding the realm of internet and e-commerce businesses.
  • Structural winds: innovative Internet and e-commerce companies are multiplying all over the world. EWEB looks beyond Silicon Valley and other household names, targeting those positioned to capitalize on untapped growth in emerging markets.

For more news, insights and strategy visit the Thematic investment channel.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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