Vietnam stock investors may face a “volatile ride” amid issues ranging from still-high inflation to the illiquidity of the market and its dominance by banks and property developers, Citigroup Inc. said.

“Despite the risks, Vietnam should be a core frontier holding,” Andrew Howell and Maria Gratsova, analysts at Citigroup, wrote in a report dated Wednesday.

The market “ranks well” among frontier markets in terms of long-term economic prospects, they wrote. Continued “dis-inflation,” consolidation in the banking sector and bad debt recognition will be key to the near-term outlook, according to the note.