REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

16/05/2022 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220516:nRSP5797La&default-theme=true

RNS Number : 5797L  VietNam Holding Limited  16 May 2022

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

Monthly Investor Report

A report detailing the activities of the Company for the month of April 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/jrfdxcem/vnh-investor-report-april-2022.pdf)
 and a summary of the report is included below.

Manager Commentary - a month of new nuances

April signaled somewhat of a revival in Vietnam with vacationers from both
home and abroad travelling around the country and making the most of waning
Covid-19 restrictions over the Reunification and Labor Day holidays. Massive
traffic jams on the roads leading out of HCMC and Hanoi, as well as
international arrivals, which more than doubled YoY, made it feel as if a bit
of normalcy had returned as the traditional holiday was celebrated again. The
renewed tourism boosted retail sales - up 12.1% from March - and encouraged
the country's positive economic outlook despite increased inflationary issues
flaring up globally. Almost 900k visited Thanh Hoa Province, an 85% jump from
the previous year, while Son La attracted swarms of tourists to its new iconic
glass bridge, apparently the world's longest.

The month, however, was not a kind one for equities as markets around the
world plunged due to growing concerns about the war in Ukraine and the
intensifying disruptions accelerating globally, not least regarding the record
rising inflation and expanding supply chain risks. Coincidentally, 2022 was
the worst April for the S&P 500 since World War II and with the market now
taking the view that the pandemic has ended, corrections in 'stay-at-home'
stocks, for example, also made a significant amount of noise worldwide. In
just one month the VN Index reversed all gains it made since June 2021, making
a MoM decline of -8.9%, its worst since March 2020 when the first lockdown
shocked the world. The most hard-hitting selloffs in Vietnam stocks stemmed
from the government's crackdown on market manipulations. The market suddenly
turned bearish on booming property companies when some arrests were made and
new investigations on a few market participants were announced. A notable
underperformance of the real estate sector saw the Fund's NAV drop -6.7% for
the month, with mid-cap property companies enduring a strong correction at the
beginning of the month. These include portfolio companies Khang Dien House and
Nam Long as well as some industrial property developers, which became
vulnerable to retail investor sentiment on the effects of stricter regulations
for the corporate bond market.

Top positive contributors included Hai An Transport (HAH), a port operator
that provides marine transport services, which reported its Q1-2022 NPAT was
up 3 times YoY thanks to dramatic revenue increase of +82% and better profit
margins. Our other logistics champion, Gemadept (GMD), fell by 7.4% despite
all segments reporting strong profit growth. Mobile World (MWG), the
omnichannel retail champion, was another strong performing portfolio company
in April, having achieved a record revenue increase for Q1. VND, one of the
most reputable brokers in Vietnam, also continued to achieve new milestones in
Q1 and announced a private placement for 20% of the company.

Although global risks abound (war, inflation, and supply chain disruptions),
Vietnam remains relatively resilient for now. April's macroeconomic data for
the country was especially upbeat even with the uncertain global risk
landscape and stock market corrections. In fact, the General Statistics Office
data for the month shows that growth is accelerating in almost all economic
activities. Exports and imports surged by 25% and 15.5% year-on-year,
respectively, taking the trade surplus to U$$2.5bn YTD. In addition, the IMF
recently maintained its 2022 6% growth forecast for Vietnam stating how
'policy support and an impressive vaccination rollout prompting a strategic
shift towards living with Covid' will continue to help the country achieve
this. This was released before Japan's Prime Minister Kishida Fumio's visited
Vietnam to meet with Pham Minh Chinh and their respective high-level
delegations about building their strategic partnership and deepening their
ties on technology renovation, digital transformation, and supply chain
diversification. In a lively in-person press conference, party leader Nguyen
Phu Trong also commemorated the two countries' plans to celebrate the 50th
anniversary of their diplomatic relationship in 2023.

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  RESBKABPQBKKKPD