Vietnam is still on track to grow by nearly three times the rate of the U.S. economy this year

A lot of folks are still confused about the direction of the markets. Nothing strange about that. These are confusing times.

But there’s one major trend you can count on – the growth of the new consumer class in the emerging markets.

If played right, it’s a trend that could double…and even triple…your investment returns.

One place this trend can’t be missed is Asia.

The number of Asians (excluding Japan) with an annual disposable income of $3,000 will rise from 570 million to 945 million by 2015.

That’s nearly one billion people with $3,000 to spend…each. Or an annual spend of three trillion dollars.

One of my favorite ways to play this trend is Vietnam. It’s like investing in China only 5 to 10 years ago ­– when the growth still hadn’t been fully priced in.

Consider the following facts:

• Of the 86 million people living in Vietnam, more than half are younger than 25.

• There is a big migration to the big cities, much like there has been in China.

• Infrastructure in Vietnam is still in the early stages. This causes a bottleneck effect in the economy. Once upgrades are made, Vietnamese growth will explode. This is what happened in China.

• Vietnam has one of the highest literacy rates in Southeast Asia. The country has a literacy rate of 94%. High education will attract investment from abroad.

These factors will continue to push the Vietnamese economy higher and…in turn…put more money in the pockets of Vietnamese consumers.

But there’s an even more powerful positive force favoring Vietnam: rising labor costs in China.

Vietnam’s Ace in the Hole: Low-Cost Labor

Put simply, the cost of doing business in China is going up. Salaries in China are expected to rise by as much as 20% this year, compared to the average 13% increase seen in the last three years.

And this uptrend is expected continue for the next five years.

It’s no wonder lots of Chinese factories have moved their operations to Vietnam.

Vietnam should definitely be on your radar. The country has its problems, such as too high a budget deficit and uncomfortably high rates of inflation. But it’s still on track to grow by nearly three times the rate of the U.S. economy this year.

And as more foreign direct investment trickles though the system, Vietnamese growth should become even stronger.

Of course, Vietnam is just one of the Southeast Asian markets that looks promising right now. Singapore, Thailand, Malaysia and Indonesia also have big advantages over their larger emerging neighbors China and India.

I’ll be visiting some of these places in the New Year along with seasoned investor…and emerging market expert Karim Rahemtulla, head of emerging markets at Investment U and former investment director of the Oxford Club.

The plan is to turnover a few rocks and see if we can’t come up with some new investing ideas. We’ll also be checking out first hand the emerging market consumer phenomenon.

Along with Vietnam, we’re going to take in Singapore, Cambodia and Thailand – three other very attractive investment destinations right now.

I’ll be reporting back for International Living Investor. So look out for more on these exciting investment destinations in January.

And if you’re interested in joining me and Karim, you’ll find all the details about this trip here. Any questions, get in touch with Barbara Perriello of Opportunity Travel, who is organizing the trip. You can email her at barb@opp-travel.com or call 800-926-6575 or 561-243-6276.

I know it’s going to be a fun – and profit-minded – expedition.