She adds that Vietnam has also been developing its relationships with the rest of the world and has a wide array of trade agreements in place.
Ewan Thompson, an EM investor at Liontrust, says: “The general backdrop for the EM asset class has been challenging in 2023 due to two key factors: the ongoing disappointment surrounding China's economic recovery after the abrupt shift away from zero-Covid; and the rapid increase in global interest rates in response to elevated inflation.
"While China performed poorly, however, several individual markets bucked this trend with strong returns, including Taiwan, South Korea, India, Brazil and Mexico.
"With EM valuations remaining depressed at a 25 per cent discount to developed markets and well below their own 10-year average, the asset class is well placed to benefit from returning capital flows as growth reaccelerates and interest rates fall.”
David Thorpe is investment editor at FT Adviser
