The Market Vectors Vietnam ETF, dedicated solely to Vietnam's stocks, rose 3.5 percent to 25.87 USD in its debut trading at the New York Stock Exchange on August 14.

The fund, launched by New York-based Van Eck Global, aims to lure investors to Vietnamese stocks. The country’s benchmark, VN Index, a measure of 162 companies on the Ho Chi Minh Stock Exchange, has gained 61 percent this year.

Vietnam has averaged 7.5 percent annual economic growth since the beginning of the decade, driven by exports, David Semple, who helps manage about 13 billion USD in equities and commodities at Van Eck, said at a presentation introducing the ETF in New York.

He said Vietnam is the world’s second-biggest rice and coffee exporter and the number one cashew producer.

"Vietnam is one of the world's most populous nations, and its well-educated, young population -- nearly half of the country's 90 million residents are under the age of 25 -- provides strong underpinnings for local economic growth," Van Eck Global said in the statement.

The Vietnamese economy grew an estimated 3.9 percent in the first six months of 2009 from a year earlier, slowing from an annual growth of 6.5 percent in the same period of 2008. It is expected to expand around 5 percent this year, according to official estimates.

While Vietnam is currently facing the pressures of inflation and current account deficits as well as the stresses of today’s global financial crisis, the country’s market reforms should help it regain its longer-term growth potential, Van Eck Global said./.