You were in Vietnam recently. What is your assessment?
Marc Faber : 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 [MBB.Vietnam], and I'm overweight Vietnam Dairy Products
[VNM.Vietnam]. 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. - in Baron's
