REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

14/09/2023 07:15

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RNS Number : 4377M  VietNam Holding Limited  14 September 2023

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

Monthly Investor Report

A report detailing the activities of the Company for the month of August 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/jxpjv4n0/vnh-investor-report-august.pdf)
 and a summary of the report is included below.

Manager Commentary - Vietnam's moment in the sun

Vietnam enjoyed further stock market gains and GDP growth in August, setting
up a shiny backdrop for US President Joe Biden's recent milestone visit to
Hanoi, where he said ties between the two countries have 'entered a new
stage'.

 

Not only have the economic reforms and commitments to stamping out corruption
paved the way for Vietnam's comeback this year, but the government also has
been proactively enhancing its relations with several countries, including the
US, its largest export market. Vietnam has what it calls a 'comprehensive
strategic partnership' currently with China, Russia, India, and South Korea
and is preparing to upgrade its diplomatic statuses with Australia and the
United Arab Emirates (UAE) by the end of the year. These evolving agreements
are already leading to increased FDI and manufacturing activity in Vietnam,
with the August Purchasing Manager Index survey by S&P Global reporting
the first month-on-month improvement in new export orders and production after
five consecutive months of declines due to cooling global demand in key
products, such as electronics and textiles.

 

Another moment in the limelight in August was when the electric vehicle maker
VinFast made its celebrated debut on the Nasdaq's Global Select Market, making
it the largest Vietnamese company by market capitalisation. Its valuation
briefly reached an extraordinary US$200 bn, on extremely thin float and
trading, making it the same size as Toyota and 50% more than Boeing. It has
since retreated to US$40 bn.

 

Despite stock fluctuations throughout the month, Vietnam's equity market stood
out compared with global bourses, which as a whole saw their second worst
month of the year. The VN Index was up +19.2% for the first eight months of
2023, outperforming its neighbours by a long range with Thailand's SET and
Indonesia's JCI down -7.1% and up only +3.4%, respectively, for the same
period. Technology and financial services were Vietnam's top performing
sectors, though industrials, consumer, and real estate also extended strong
gains (ongoing since May) and continue to be trading at attractive valuations
versus peers in the region. VNH's biggest holding, FPT, was the country's best
performing stock in August, rising by 12.3%. Year to date the Fund is up
24.3%, in line with the Vietnam All Share Index, but is significantly ahead of
its London-listed peers.

 

We expect this positive momentum in the broader market to carry on given the
continued low interest rate environment and improving company earnings for
upcoming quarters. While high volatility is also expected to persist, given
the significant participation of retail investors, we view this as a positive
factor for the long-term development of Vietnam's equity market. Although
valuations have risen this year, this is offset by a positive outlook for
earning's growh through the rest of 2023 and into 2024.

 

Additionally, Vietnam's stock exchange is accelerating the implementation of
the new KRX trading system - expected by December 2023 - for facilitating the
deployment of new products, facilitating even greater trading levels, faster
settlement and enabling the eventual removal of 'pre-funding' of stock trading
accounts. This is seen by many as one of the key steps for Vietnam getting its
own upgrade from frontier to emerging market status and ever so sought after
place in the MSCI EM Index.

 

We will be available to meet investors in the UK from 17th to 23rd October -
please contact us or the fund's Corporate Broker if you would like more
information, or to arrange a meeting.

 

 

 

 

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/)

Change of Name of Broker

The Company also announces that its Sole Broker has changed its name to
Cavendish Capital Markets Limited following completion of its own corporate
merger.

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

William Marle

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