REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

14/03/2022 07:16

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220314:nRSN6354Ea&default-theme=true

RNS Number : 6354E  VietNam Holding Limited  14 March 2022

VietNam Holding Limited ("VNH" or the "Company")

Monthly Investor Report

A report detailing the activities of the Company for the month of February
2022 has been issued by Dynam Capital Limited, the investment manager of the
Company. Electronic copies of the report have been made available to
shareholders on the Company's website
(https://www.vietnamholding.com/media/cbrdtsu1/vnh-investor-report-february-2022.pdf)
 and a summary of the report is included below.

Manager Commentary - the new global game

Once again, we have seen how the velocity and context of global risk can
change dramatically within a matter of days, if not hours. The Russia-Ukraine
war shook global stock markets in late February just as several countries
around the world, including Vietnam, were beginning to lift Covid-19
restrictions and learn how to live with the Omicron variant as more of the
population became vaccinated. Globally, the implications of this war include
higher energy costs from a surging price of oil and other accelerated
inflationary pressures. Some markets will also see a significant dent in
tourism with a sheer lack of travelers coming from Russia, however, increased
volatility will continue to be felt across all sectors as evolving
geo-political risks impact the supply and costs of goods around the world.

Vietnam saw its economy recover further in February in line with our
expectations, despite the crisis' onset. Manufacturing bounced back to a PMI
of 54.3, trade kept up its growth momentum with exports increasing +13.6 YoY
and imports +22.4% YoY, as Foreign Direct Investment disbursement grew
further, +7.2% YoY, and retail sales kept improving after the Tet holidays.

The Fund finished the month up 3.8% resulting in a flat YTD NAV per share
after January's decline. The Fund's high active weight has contributed to
strong outperformance of the market as diverse performance among positions has
continued. The mid-caps proportion of the portfolio recovered strongly, with
VNH fully gaining back the loss incurred the month before and outperforming
the market on the way up. Top positive contributors for February included bank
holdings (MBB, VPB and STB) as valuations appeared more attractive after the
underperformance in 2H2021, and logistics companies (GMD and HAH), which have
seen better net-profit-after-tax growth in 2022 due to stronger demand for sea
cargo transport. We expect that demand to continue, if not increase more,
since these companies are likely to benefit from further value chain
disruption caused by the crisis.

Company fundamentals have become the key focus again for investors in Vietnam
and considering that Vietnam's trade with Russia is only around 1% of its
total, we do not anticipate the war to hit businesses directly. Instead, we
see global inflationary pressures stemming from the conflict as the main risk
in Vietnam going forward and domestic money flow already becoming less
easy-going as a result of the current environment.

With International Women's Day, World Water Day, and World Consumer Rights Day
all taking place throughout the month of March, it seems pertinent to also
emphasise our monitoring of how the conflict in Ukraine and consequential
rising energy costs might affect environmental, social and governance (ESG)
commitments. As a responsible investor, we have always considered carbon
footprints in our selection criteria, but it is important to note that we
equally look at companies' impacts on people and society and how the E, S and
G are so interlinked. Indeed, the 'S' side of ESG can transpire in many ways,
including better customer service, high staff retention and positive
innovation through greater research and development, to name a few. PNJ, the
leading jewellery producer and retailer in Vietnam, is an excellent example of
how corporate social responsibility can enhance customer satisfaction and
trust. It is a well-respected brand that was recently applauded by Facebook
for having over 138x return on ad spend and a 10% conversion rate from
Messenger to successful transaction. FPT, another exemplary company in our
portfolio in this regard, takes pride in its education business with nearly
74,000 people becoming qualified IT skill workers because of it as of 2021. As
one of Vietnam's biggest broadband Internet providers, its management also
aims to grow its products and services for domestic SMEs, which is not only
positive its own long-term performance but also for further growing the
country's economy.

 

For more information please contact:

Dynam Capital Limited

Craig Martin
                                                Tel:
+84 28 3827 7590

 

info@dynamcapital.com (mailto:info@dynamcapital.com) |www.dynamcapital.com
(http://www.dynamcapital.com)

 

www.vietnamholding.com (http://www.vietnamholding.com/)

finnCap

Corporate Broker and Financial Advisor
                                 Tel: +44 20
7220 0500

William Marle

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  RESBKQBNQBKKOND