REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

12/10/2023 07:15

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RNS Number : 9103P  VietNam Holding Limited  12 October 2023

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

Monthly Investor Report

A report detailing the activities of the Company for the month of September
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/du3nfjb3/vnh-investor-report-september-2023.pdf)
 and a summary of the report is included below.

Manager Commentary - Taking stock in Vietnam

Vietnam continues to outpace the world and other ASEAN countries in terms of
real GDP growth, having expanded by 5.33% in the July to September period from
a year earlier, despite unremitting global geopolitical and economic distress.
Q3 2023 stats show how its economy is benefiting from both the government's
slew of supportive measures this year, including more public investment roll
outs particularly in Ho Chi Minh City, and the ever-evolving shift in
manufacturing supply chains given today's exponential technological and
regulatory change. A healthy flow of foreign direct investment is also helping
Vietnam strengthen its position in the global supply chain.

 

In September, the country's trade balance managed to stay on its
month-to-month record-surplus course in spite of lingering headwinds, namely
the continued economic weakening in the US and Europe, which together account
for around 42% of Vietnam's goods exports. In the end, enhanced domestic
demand and steady increases in other manufacturing exports helped fuel the
growth throughout the month, with electronic exports to mainland China rising
after having shown significant declines in early 2023. Industrial production
also stood out, climbing 5.1% YoY after having contracted by 0.4% YoY in the
first eight months of 2023. Additionally, retail sales maintained its
momentum, with an 8% YoY rise.

 

The International Monetary Fund (IMF), which is currently holding its annual
meetings with the World Bank and international banking community (this year
gathering in Marrakech), forecasts Vietnam's growth for 2023 at 4.7% while the
Asian Development Bank (ADB) expects a growth of 5.8%. Although a cut down
from earlier expectations, these rates still make Vietnam once again the
fastest growing country in Southeast Asia.

 

September proved to be another volatile month in Vietnam's equity market,
however, due to an upsurge in profit taking activities after the long rally
that had been running since May. The bearish sentiment this month was also
attributable to fresh volatility in the FX market when the VND depreciated
1.3% given the dollar index's surge and the pressure that put on all emerging
market currencies.  The Fund's NAV declined 4.3% during the month,
outperforming the VNAS index. The Fund has outperformed the market on a
1-year, 3-year, 5-year and 10-year basis.

 

While Vietnam's equities are still trading at an attractive valuation versus
its peers, the market volatility is likely to last in Q4 because of the
considerable amount of retail participants. This is not a bad thing though
since their active participation supports the long-term development of
Vietnam's stock market, including its ultimate progression towards being
included in the MSCI EM Indices.

 

With our high conviction and concentration across key themes of domestic
consumption, urbanisation and industrialisation, VNH remains focused on
maintaining a resilient portfolio for more solid growth in 2024. For example,
Gemadept (GMD), one of our top-ten holdings, is a pioneer in many sectors, and
leading performer in its core businesses of Port Operation and Logistics. The
portfolio has benefited from our overweight in GMD this year as the company
continues to implement key projects for increasing its scale and long-term
growth plan for the period 2021 to 2025 with a vision to 2030 that ensures the
needed resources and cash flows are there for expanding both its Gemalink
Deep-sea Port and Nam Dinh Vu Port projects. Vietnam will remain a key
beneficiary of the shift in global manufacturing supply chains to competitive
Southeast Asian hubs.

 

 

 

 

 

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/)

Cavendish Capital Markets Limited

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

William Marle

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