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Published on March 20, 2008

Banking on markets abroad can help alleviate the impact of a stronger baht against the dollar, which is slowing down growth in exports.

Suwan Walaisatien, chairman of the Saving Club, yesterday said the stronger baht presented a good opportunity for Thais to invest in overseas markets, given lower risks [in markets that are relatively cheap] and offer better returns.

He said five alternative areas for investment comprises property, stocks, fixed income funds, gold, and foreign investment funds.

"This is the right time to invest overseas because the baht has appreciated [making dollar-based assets cheaper to buy]. The study of overseas investment can offer opportunities for local investors to earn higher returns," said Suwan.

He also advised investors to consider the Vietnam stock market as it presented sizeable opportunities, having enjoyed robust economic growth in the past few years.

According to a Bank of Thailand report, the Kingdom's net foreign reserves have soared to a record high of US$123.8 billion (Bt3.91 trillion) at the end of last month.

Ayudhya Fund Management has launched the country's first ever FIF, focusing on the Asean market, particularly in Vietnam, as its main choice for investors.

It will invest in a fund by Credit Agricole Asset Management (CAAM), a France-based firm.

The fund will be initially sold to investors until March 31. An initial investment of Bt10,000 is required.

The "AYF Asean Vietnam Focus Fund" has a policy to be overweight in its investments in Thailand and Vietnam at 21 per cent and 16 per cent, respectively.

The remaining portfolio will be allocated to Indonesia, Singapore and Malaysia.

"Besides Thai stocks, the fund will focus on Vietnam as an emerging economy. Although the Vietnamese stock market has fallen by 38 per cent since early this year, it presents a great opportunity for Thai investors to buy undervalued shares that can provide high returns," said Prapas Tonpibulsak, chief investment officer of Ayudhya Fund Management.

He indicated that the stock exchange of Vietnam should recover soon.

This year, Vietnam's economy is expected to grow by 8.5 per cent from 8.3 per cent last year, the highest growth rate among Asean countries.

Prapas added that the company would this year introduce another two foreign funds for investors and this would help boost the AYF's asset under management to Bt100 billion this year. Of these, the new AYF Asean fund size is expected to account for Bt1.5 billion this year.

Last year, the AYF achieved an increase in assets under its management of Bt50 billion.

Reginald Tan, director of investments and head of research at CAAM, said that Vietnam is one of the most interesting markets in Asia.

"Despite having a small market value of $20 billion, the value should jump significantly to $50 billion within a few years," said Tan.

Petchanet Pratruangkrai

The Nation