"When we picked Vietnam PYN Elite’s country allocation about 10 years ago, we set a long-term index target to 2,500 points for the Vietnamese market," portfolio manager Petri Deryng wrote in a release on Thursday.

The key considerations for the decision to raise that VN-Index target to 3,200 points are: Vietnam’s new administration is steering the country decisively toward a higher level of prosperity, and the public mega projects will drive this new strong growth era and accelerate private-sector investments.

"Simultaneously, the modernization of Vietnam’s financial markets is advancing rapidly, and banks’ loan growth is being actively supported. In summa summarum, these policies create even more favorable conditions for Vietnam’s economic expansion and for companies’ robust earnings growth," said Deryng.

The VN-Index’s P/B (price-to-book) valuation has exceeded the 3.0 level three times over the past 15 years. Over the long term, the average P/E (price-to-earnings) ratio has been around 16, and in three periods the P/E has risen above 20, according to PYN Elite Fund data.

"Our new index target of 3,200 is based on an expected average earnings growth rate of 18-20% over the coming years. In 2025, earnings growth is likely to exceed 20%. PYN Elite’s performance has unfortunately moderated over the past six weeks and stands at only about +15% year-to-date. Investors have continued profit taking, particularly in stocks that have had strong outperformance.

"Despite this, consensus indicates that the outlook for six- and 12-month returns remains very positive. The market may resume its bullish trend at any time," he added.

PYN Elite said its Vietnam portfolio in October had a negative performance of 4.85% compared to the previous month, driven by corrections in banks and financials, after dropping 3.1% in September.

PYN Elite has been investing in Asia throughout its history. The journey began with Thailand, where the fund’s founder and portfolio manager, Petri Deryng, made the first investments in 1999. Since 2017, all the fund's investments have been in Vietnam.

PYN Elite’s cumulative return is 5,456%, with an average annual return of 16.2% (as of October 2025), according to its website.