Cramer's 'Mad Money' Recap: Don't Miss Saigon Opportunity

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When Intel(INTC Quote) applies with the government of Vietnam to build a semiconductor plant in Ho Chi Minh City, it's officially time to start investing in Vietnam, Jim Cramer said on Thursday's "Mad Money" TV show.

The country's economy grew at 8% in 2005, but no one knows how to play the country because it's bottled up tight. That is until now.

Cramer's done some homework and says the country is going capitalist.

"You don't get Intel begging to open up in communist countries," he said.

But it's in transition, and investing directly is too risky. The smart play is the banking system, since Cramer said everything in the country is financed by, and thus owned, by four banks.

So he suggested buying Australia & New Zealand Banking Group(ANZ Quote), an Australian bank that owns 10% of a key Vietnamese bank that is due to start trading on the Ho Chi Minh City Stock Exchange.

ANZ is worth owning, Vietnam aside, he said. A caller agreed, saying that its compound annual growth rate was 16% over two years.

But the same caller said that the P/E of 17 that he had calculated is a bit expensive, and that the stock is near its 52-week high. So he asked if now is the right time to get in on ANZ.

Cramer said that it's still a good buy, since he calculated a smaller P/E ratio. He added that Commerce Bancorp(CBH Quote) is the only bank he would usually recommend with a P/E as high as 17.

Another caller wanted to know why Intel's(INTC Quote) price is not reflecting the company's growth potential.

Cramer said that until the company adds a communications multiple, it will be treated like a PC play.