REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

12/04/2022 07:45

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RNS Number : 0870I  VietNam Holding Limited  12 April 2022

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

Monthly Investor Report

A report detailing the activities of the Company for the month of March 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/5rabiysh/vnh-investor-report-march-2022.pdf)
 and a summary of the report is included below.

Manager Commentary -  the vibes of March

The month of March served as another telling example of Vietnam's unique
growth story. To start, retail sales continued to recover from Covid-19
disruptions, ending the month up 9.4% thanks largely to the welcomed
re-opening of domestic tourism. Trade activities also continued their growth
momentum, with exports increasing by a massive 45% MoM. Manufacturing bounced
back as well, with GDP growth for Q1 2022 standing strong at 5% despite rising
global risks and the war in Ukraine. Additionally, FDI for Q1 2022 was up 8%
YoY, a record increase for the Q1 period, and we expect disbursement to become
even greater and more dynamic in the next three quarters to come. As emerging
market specialist, Charlie Robertson, discusses in his forthcoming book, the
Time Travelling Economist, Vietnam now exports far more per capita than China
and in 2021 had the world's third largest trade surplus with the US, ahead of
Germany and Japan and only behind China and Mexico. In a recent preview of the
book, Robertson explained further why the country has become so favoured by
foreign investors - Vietnam currently accounts for 25% of all the global money
invested in Frontier equities even though it is just one out of 22 countries
in the MSCI Frontier Index. He started with how much the Vietnamese value
education. 'Vietnam had already achieved over 80% adult literacy in the 1980s,
ahead of China in the 1990s and India in the 2010s. Any country needs 70-80%
to industrialise and Vietnam is decades ahead of not just mainstream emerging
markets, but also Frontier markets like Nigeria or Pakistan where the is still
around 60%.'

VNH outperformed the VNAS with a NAV of +2.3% and this month was no exception
in how its portfolio reflects Vietnam's extraordinary growth story through its
approach to responsible investing in companies with purpose and sound
potential for long-term, sustainable performance. FPT, the leading information
technology service company in Vietnam, as well as our largest holding, was a
positive contributor once again and we expect it could achieve more than 20%
net profits after tax (NPAT) growth in 2022 due to increasing demand both at
home and abroad. Other top contributors in March, GMD and HAH, remain
well-placed in the logistics sector given the higher demand for international
trade despite the ever-increasing shortage of container shipping supply due to
Covid disruptions and geo-political implications of the Ukraine war. Both
companies are forecast to achieve significant NPAT growth - GMD, 50% and HAH,
70% - in 2022 on top of the high base seen in 2021. Although the retail sector
has not fully recovered from the lockdowns, inflationary pressures remain
relatively under control in Vietnam and we see MWG and PNJ, also positive
contributors for the portfolio in March, as prime examples of companies
well-managed and agile enough to capture rare opportunities presented by
demographic shifts and digital transformations.

Six months ago, at COP26, Vietnam committed to achieving net-zero emissions by
2050. While the government had been working with state bodies, as well as
other nations and economic blocs, for some time to motivate companies to pay
more attention to environmental, social and governance (ESG) risks, it has
taken firmer steps in building a legal corridor for implementing these pledges
and eliminating projects that cause environmental harm. Regulation of
corporate governance and disclosure has become a clear priority of Vietnamese
authorities, and we will continue to enhance our engagement with companies and
other stakeholders to progress action and promote greater transparency, in
this respect. In March we held a webinar, 'Heading Towards Net-Zero and
Corporate Strategies' together with Vietnam Energy and Environment Consultancy
JSC to support companies in building their decarbonisation roadmaps. Due
diligence by global investors and various stakeholders in the global supply
chains will only become more stringent when it comes to ESG matters, and we
believe collaborative action, the UN's 17th Sustainable Development Goal, will
play a much more integral role in both our investment process and Vietnam's
journey to become net-zero.

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

 

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