REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

17/05/2023 07:17

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RNS Number : 7027Z  VietNam Holding Limited  17 May 2023

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

Monthly Investor Report

A report detailing the activities of the Company for the month of April 2023
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/xbrjjjyp/vnh-investor-report-april.pdf)
 and a summary of the report is included below.

Manager Commentary - Moving ahead in an uncertain world

April ended on a flat note overall for Vietnam. Although the country ran a
trade surplus of US$ 6.4bn for the first four months of 2023 (4M-2023), global
macroeconomic uncertainty meant its key manufacturing sector, particularly
garments and electronics makers, were unable to maintain their usual high
growth with some forced to cut some jobs due to dampening demand from abroad.
The impact of the global slowdown is very broad-based with the biggest impacts
seen in textiles, footwear, smartphones, wooden furniture, fishery products,
as well as in iron and steel.

 

On the positive front, the Vietnam Dong has become more stable, and FX
reserves robust. Foreign direct investment (FDI) and public investment also
continued to push ahead. For example, public investment for the 4M-2023 is
estimated at US$5.6 bn - an increase of 18% year-on-year (YoY). Additionally,
inflation risk is more under control compared to many other markets, and
unlike the rest of the world, Vietnam's central bank, the State Bank of
Vietnam (SBV), has been cutting its interest rates.

 

Another plus is that international tourism bounced back strongly in April,
with Chinese arrivals making a significant rebound, up +62% month on month
(MoM), after authorities in China lifted Covid-19 restrictions for group tours
from the 15th of March. Retail sales remained upbeat, largely due to the
tourism comeback and two recent public holidays in Vietnam. Nevertheless, we
expect a downward trend of retail sales in coming months due to the many
lingering global macro and geopolitical risks afflicting all countries.

 

Recent policy developments in Vietnam still provided positive forecasts, for
example, with the government's VAT and interest rate reductions, further
stimulus packages as well as its ongoing efforts to resolve real estate
corruption finally bearing fruit. FX risk is much lower compared to last
quarter and a weaker US dollar has allowed modest easing from the SBV. This
not only helps restore confidence in the country's real estate and corporate
bond markets, but also reduces market risks for its banks.

 

As expected, volatility in Vietnam's equities market persisted into April,
pricing in both good and bad news. Despite headwinds in the short-term, both
externally and internally, the Fund, with a decline of 0.4% NAV for the month,
continued to accumulate shares during the month, as companies accounted for
their disappointing earnings growth for Q1 2023. Though domestic sentiment was
still somewhat subdued, we also saw signs of foreign investors allocating more
to Vietnam and this has been apparent by more flows into Vietnam ETFs and
other investment products.

 

Ongoing disruption is why conviction and selection criteria continue to be as
important as ever, not least as policy changes around the world influence so
much of how business leaders and their stakeholders up and down the value
chains make decisions.

 

In April, we welcomed more transparent regulations signed by Deputy Prime
Minister Tran Luu Quang on the procedures, issuance, and management of
Asia-Pacific Economic Cooperation (APEC) business travel cards, which are
inevitably key to future business propositions in Vietnam. Seven APEC
economies, namely the United States, China, Japan, South Korea, China and Hong
Kong SAR, Malaysia, and Singapore, are among the top 10 largest export markets
and major investors in Vietnam, so the benefits of encouraging international
businesspeople to visit the country more easily will only attract further
investment.

 

We thank all investors for their continued support and interest.

 

 

 

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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