The overlooked emerging markets investors should know about

By Joss Murphy on 22 October 2026 in Asia/Emerging Markets

China, India, Taiwan and South Korea are the most popular emerging markets for investors because they’re home to leading names in technology and manufacturing. These nations are reaping the rewards of government reforms, rising domestic demand and the phenomenal rise of artificial intelligence.

But what about the more overlooked areas? Here we explore countries flying under the radar that could be worth considering – and the investment funds embracing them.

Vietnam

Recent reforms have made Vietnam’s market more accessible, transparent, and attractive to potential investors. The improvements, which include modernising the trading systems, have earned it an upgrade from ‘frontier’ to ‘emerging market’ status by FTSE Russell, the global index provider. It means that more investors will have exposure to Vietnam because many index funds use such benchmarks to determine market allocations.

Its economic analysis highlighted how “surging exports and investment, a resilient domestic economy and sweeping reform agenda” helped maintain momentum.

You can access Vietnam through the Baillie Gifford Pacific fund, a high-conviction, long-term growth portfolio. It’s been a standout performer in the Asia Pacific region, with the focus on identifying companies with durable growth potential having served it well. Its Vietnamese holdings include Hoa Phat, a leading industrial manufacturing group that is heavily involved in steel production, as well as the retail group Mobile World Investment Corporation**.

Another way to access Vietnam is through the T. Rowe Price Frontier Markets Equity fund. Vietnam is currently its largest country allocation, accounting for around 28% of the portfolio^. The fund seeks long-term growth by investing in high-quality companies across under-researched frontier markets, with the team combining bottom-up stock selection with detailed analysis of each country’s economic backdrop.

Indonesia

Indonesia is Southeast Asia’s largest economy and comprises more than 17,000 islands and 300 ethnic groups. It’s bordered by Malaysia, Singapore, East Timor and Papua New Guinea. Over the last two decades, it’s benefitted from domestic consumption and infrastructure development. Annual growth is likely to be 5.1%, with a target of 8% by 2029***.

The country is rich in natural resources and minerals, such as coal, tin, gold, copper and nickel, while its fertile land supports agricultural products. Its tropical weather and huge land-bank lend themselves perfectly to the production of palm oil, rubber, coffee, cocoa and rice. However, it could be downgraded to ‘frontier’ status after MSCI froze the country’s stocks over issues such as unreliable trading data****. The next few months will be crucial.

The Templeton Emerging Markets Investment Trust, managed by Chetan Sehgal and Andrew Ness, has exposure to Indonesia. The Trust has built an impressive track record of investing in high-quality businesses with strong balance sheets, good cash-flow generation and attractive valuations. One of its holdings is Astra International^. This is a large Indonesian conglomerate headquartered in Jakarta that’s diversified across numerous sectors, including automotive, financial services, construction & energy, agribusiness, information technology, property and healthcare.

Saudi Arabia

For the past decade, Saudi Arabia has worked on its ‘Vision 2030’ project to modernise its economy and society – and open up to foreign investors. The campaign has delivered “measurable structural change”, according to an analysis by Franklin Templeton. Non-oil GDP now accounts for more than half of real output^^.

The project is now promoting private sector investment to boost strategic infrastructure in AI and data centres, as well as in renewable energy and mining. The JPMorgan Emerging Markets Growth & Income Trust, managed by Austin Forey and John Citron, has some exposure to Saudi Arabia. One of its current holdings is Al Rajhi Bank^, a Saudi Arabian bank based in Riyadh, founded in the late 1950s.

Other areas

South Africa is Africa’s second-largest economy and boasts a diversified mix of mining, agriculture, manufacturing, and services. It’s often overlooked because of low headline GDP growth but has benefitted from financial reforms in recent years. The Artemis SmartGARP Global Emerging Markets Equity fund, managed by Raheel Altaf, has exposure to South Africa and is heavily invested in Korea and China^^^.

Elsewhere, Peru, Mexico and Singapore are three other overlooked emerging areas that get a fraction of the coverage afforded to other nations. All three countries are embraced by the FSSA Global Emerging Markets Focus fund, which invests in 40-45 large and medium-sized companies. Beyond overlooked countries, it also has substantial exposure to emerging giants such as China, Taiwan, South Korea, and India^^^^. Its manager, Rasmus Nemmoe, takes an absolute-return approach and favours companies that can demonstrate sustained, predictable long-term growth.

*Source: The World Bank, May 2026
**Source: full portfolio holdings, 30 September 2026
***Source: IMF, 14 January 2026
****Source: Reuters, 23 June 2026
^Source: full portfolio holdings, 31 August 2026
^^Source: Franklin Templeton, Saudi Arabia Vision 2030
^^^Source: fund factsheet, 31 August 2026
^^^^Source: fund factsheet, 30 September 2026