Vietnam ranked first among the frontier markets, which index providers consider too small or illiquid for most investors. The United Arab Emirates came in second, while Bulgaria and Romania tied for third place.
As the world’s second-largest economy, China commands the attention of investors even though the International Monetary Fund projects that its growth will slow during the next five years.
After decades of topping 10 percent annually, China will expand at an average pace of 9.4 percent from 2012 to 2016, the IMF forecast in September. That still outpaces any other country in the ranking. China’s low government debt – 16 percent of GDP compared with 45.3 percent for No. 2 Thailand – and cheap equity valuations helped secure its top spot among emerging markets. The other three so-called BRIC countries –Brazil, Russia and India – didn’t fare as well. Russia ranked No. 8, while India and Brazil failed to make the top 10.