Unlocking Asia's Hidden Gems: High-Conviction Undervalued Equities in Vietnam, Bangladesh, and Kazakhstan

In the ever-evolving landscape of global investing, under-followed emerging markets in Asia are emerging as fertile ground for high-conviction opportunities. Vietnam, Bangladesh, and Kazakhstan—each grappling with unique macroeconomic dynamics and governance challenges—present compelling cases for tactical allocation in undervalued equities. By dissecting their growth trajectories, earnings momentum, and governance reforms, this analysis outlines a roadmap for capitalizing on these markets' untapped potential.

Vietnam: Manufacturing Resilience and Digital Transformation

Vietnam's economy is surging ahead in 2025, with GDP growth projected to hit 6.1–7.0% amid robust export expansion and domestic consumption. Q2 2025 alone delivered 7.96% year-over-year growth, driven by a 14.5% surge in exports and 9.3% rise in public investment. The stock market, too, is gaining momentum, with the VN-Index rising 14% in Q1 2024 and KBSV forecasting 16.7% earnings per share (EPS) growth for listed companies in 2025.

Key Equities:
- FPT Corporation (FPT): A leader in digital transformation, FPT reported 23.4% revenue growth in 2022 and a 20.9% increase in pre-tax profit. Its corporate governance score of 76% in 2022 outperforms industry benchmarks.
- Vietcombank (VCB): Net profit rose 19% in 2025, bolstered by digital lending and risk management improvements.

Governance reforms, including stricter board independence requirements, are reshaping Vietnam's corporate landscape. While challenges persist—such as weak corporate governance scores (57.6/130 in 2022)—the government's push for international financial reporting standards and transparency offers long-term optimism.

Bangladesh: Fintech Disruption Amid Macroeconomic Headwinds

Bangladesh's fintech sector is a beacon of innovation, with 332 companies operating in the space, including unicorns like bKash and Nagad. These platforms have enabled 100 million users to transact digitally, yet the sector remains underpenetrated in wealthtech and agri-fintech. The Dhaka Stock Exchange (DSEX) trades at a historically low P/E ratio of 9.41, signaling undervaluation, though earnings for listed companies declined 2.9% annually in 2025 due to cost pressures.

Key Equities:
- iFarmer: This agri-fintech startup raised $500K in May 2025, connecting investors with farmers to modernize agriculture. It has facilitated $2.45 billion in funding for 113,000 farmers, nearly half of whom are women.
- PriyoShop.com: A fintech platform for small retailers, it raised $1.8M and leverages embedded finance to expand its reach.

Governance improvements under interim leader Dr. Muhammad Yunus offer hope for policy reforms, though systemic issues like high non-performing loans (NPLs) and political instability persist.

Kazakhstan: Agtech and Energy-Driven Growth

Kazakhstan's economy is accelerating, with GDP growth projected to reach 5.5% in 2025, driven by oil production and fiscal stimulus. The KASE index surged 25.4% as of September 1, 2025, while market capitalization hit 39.6 trillion tenge. Agtech firms like Olzha Agro and Atameken-Agro are leveraging precision farming and automation to boost productivity.

Key Equities:
- Olzha Agro: Improved governance and transparent management have driven cost reductions and productivity gains.
- Agroengineering: A key exhibitor at AgriTek/FarmTekAstana-2025, it is advancing automation in agriculture.

Despite progress, governance challenges—including political corruption and top-down policymaking—remain. However, reforms like the 2020–2025 Civil Society Development Concept aim to enhance transparency.

Strategic Allocation and Risk Mitigation

Investors should prioritize equities aligned with macro trends:
- Vietnam: FPT and VCB for digital transformation and banking.
- Bangladesh: iFarmer and PriyoShop for fintech and agri-fintech.
- Kazakhstan: Olzha Agro and Agroengineering for agtech.

Conclusion

Asia's under-followed economies offer a rare blend of macroeconomic resilience, earnings momentum, and governance reforms. While risks such as inflation in Bangladesh and political instability in Kazakhstan persist, the upside for undervalued equities in manufacturing, fintech, and agtech is substantial. For investors seeking tactical exposure, now is the time to act.