REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

14/07/2022 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:20220714:nRSN4619Sa&default-theme=true

RNS Number : 4619S  VietNam Holding Limited  14 July 2022

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

Monthly Investor Report

A report detailing the activities of the Company for the month of June 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/ldobp4wn/vnh-investor-report-june-2022.pdf)
 and a summary of the report is included below.

Manager Commentary - when Macro matters

Putting risk and the opportunities it creates into perspective in today's
chaotic world is as much of an art as it is a science - considering its
continued growth stats, Vietnam is no exception. Not only is the country
proving to maintain resiliency in what has so far been an economic curveball
of a year globally, it also is painting a relatively brighter picture for what
is to come in the second half locally.   This month Vietnam stood out with a
staggering 7.7% YoY GDP growth for Q2 - exceeding expectations and ranking
significantly higher than other nations around the world including in the G20
area which rose by only 0.7%, according to OECD reports. Vietnam's continued
'broad-based recovery' has led some international financial institutions to
upgrade their growth forecasts for it for the rest of 2022 as different
sectors in the country regain pre-pandemic momentum. Both HSBC and
Singapore-based United Overseas Bank, for example, recently raised their
Vietnam growth forecasts for 2022 to 6.9% from 6.6% and 7.0% from 6.5%,
respectively.

Vietnam's growth this year is noteworthy given record rising inflation and
other unprecedented disruptions affecting trade and investment worldwide.
Despite today's intense global risk landscape, the country's manufacturing
sector managed to expand for the ninth consecutive month in June, for example.
New orders rose further, and production capacity continued to improve.
Disbursed FDI also hit record highs during the first half of 2022 reaching USD
2.9bn in June, the highest monthly amount this year. Looking ahead, as
Vietnam's handling of the pandemic pays off, we expect the full reopening of
economic activities to continue to boost investment initiatives and
feasibility assessments for new projects 2H 2022.

Although equities markets at home and abroad have endured an unsettling 1H
2022, Vietnam's retailers and basic exports sectors have shown increased
resilience. The Fund's overweight in these - and underweight in banks and real
estate - helped it outperform the benchmark index again in June: -6% versus
-8.7% for the month; and -16% versus -24.5% YTD.

The Fund outperformed other indices, including the VN70 midcaps index, which
saw a widening divergence of performance driven largely by the switch of
retail investors from small and medium caps into larger caps. June set new
records in the number of retail stock trading accounts opened, with 1.2m
accounts opened in Q2, twice the level in Q1. The market correction in late
June led to more attractive valuation levels and, after two years of selling,
foreign investors became net buyers in Vietnam's equities markets.

Moving into 2H 2022, the global mood remains weak. Although recessionary risks
remain less severe for Asia than the West, a global recession would hit
Vietnam's export growth in 2023 and we will be watching the implications
closely, including how policy directions and actions unfold. Trade is key to
Vietnam's economy, especially given its more prominent place on the global
supply chain map - the country posted a trade surplus of over USD 700m in 1H
2022.

A global recession would not only weigh in on the country's impressive exports
and production growth but could also impact its banking sector. On the
positive front, the domestic economy may benefit from an increased amount of
government spending on infrastructure, which has been under-budget in the
first half of 2022. Infrastructure expenditure has a multiplier effect on
economic growth, including accelerating the pace of urbanisation, and leading
to a growth in real-estate development and the growth in modern trade.

Agile policy making will be as important as ever. As the IMF recently
reported, Vietnam's handling of the pandemic and associated risks helped the
country get through the last two years, particularly its remarkable
vaccination rollout, so with rising retail sales, improving industrial
production, and increasing foreign investment, there's a lot to consider when
it comes to Vietnam's monetary policy and economic growth as the world
evolves.

 

 

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  DOCSFFSLLEESEDW