Asia’s markets showcased stark divergence as India’s Nifty 50 breached 25,000 for the first time, while Vietnam’s Ho Chi Minh Index collapsed 7% amid a spiraling real estate crisis.
India’s FDI Boom:
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Manufacturing Push: Apple, Tesla, Hyundai invest $3B; iPhone plants (PLI scheme), EV factory (Gujarat), green battery hub (Tamil Nadu).
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Retail Investor Frenzy: 2 million new demat accounts opened in April, with daily turnover hitting $15B.
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Adani Group: Soared 8% after winning a $3B solar contract under India’s Green Energy Corridor initiative.
Vietnam’s Crisis:
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Novaland Default: The property giant missed a $500M bond payment, dragging shares down 25%.
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Banking Panic: Saigon Commercial Bank (SCB) froze withdrawals, igniting protests in Hanoi as public outrage.
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Export Slowdown: Q1 GDP plummeted to 3.1% (from 6.5% in 2024) as real estate and banking crises pummeled the economy.
Regional Implications:
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Supply Chain Shifts: Foxconn relocates 15% of production from Vietnam to India.
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Investor Sentiment: Foreign outflows from Vietnam hit 1.2B YTD vs. inflows to India.
Analyst Warning:
“Vietnam needs a property bailout fast,” said VinaCapital’s Andy Ho. “India’s rally, however, looks sustainable with policy continuity.”
