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Wednesday, July 3, 2013

Vietnam exports strong and people hardworking

There are a lot of bad loans in the banking system, and the stock market has fallen 70% from the highs. But exports are strong, and the people are hard-working. There is a 35-kilometer stretch of beach between Danang and Hoi An that will be a huge resort area in the future. It is only an hour and 10 minutes by plane from Hong Kong, and two hours from Singapore. A Park Hyatt resort in the area has been selling villas and condos, and almost all have been bought by Vietnamese. I visited during a holiday, and 90% of the people on the beach were Vietnamese. One man even brought his Lamborghini. You can find companies in Vietnam with yields of 5% to 7%. I like Military Commercial Bank, and I'm overweight Vietnam Dairy Products. It is a dominant force in the diary-foods industry and has been growing by about 20% a year for the past 10 years. It could keep growing by 10% to 15% per annum, and the valuation is low. Sooner or later, it will be acquired.

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.


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