REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

15/12/2023 07:15

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RNS Number : 9667W  VietNam Holding Limited  15 December 2023

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

Monthly Investor Report

A report detailing the activities of the Company for the month of November
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/mrola5k5/vnh-investor-report-november-2023.pdf)
 and a summary of the report is included below.

Manager Commentary: A climactic end to an anti-climatic year

Vietnam saw advances on both economic and stock market fronts to help it wind
down the year on a rising tide. Trade continued its road to recovery from
ongoing post-pandemic global macro risks, hitting a new record trade surplus
of US$25.8bn for the eleven months of 2023 (11M2023). Exports, up +6.7%
year-on-year (YoY), rebounded for three consecutive months with electronics
goods showing a particularly strong pace of growth in November. 'Made in
Vietnam' is attracting more attention than ever on the global stage and
foreign direct investment in Vietnam remains robust. 11 months' disbursed FDI
rose by +2.9% YoY and registered FDI surged by 14.8% YoY. Indeed, public
investment is also accelerating, as the government ramps up key transport
infrastructure projects with commitments until 2026. Investment in energy
infrastructure will also be promoted further after official approval of the
US$22.8bn Power Plan 8. Public investment in 11M2023, up +23% YoY and
accounting for 75% of the whole year target.

 

During a reception hosted by Vietnam's PM in Hanoi in November, the president
of the US Semiconductor Industry Association (SIA) stated that Vietnam is the
most appealing destination for US investors in his industry and could serve as
a strategic partner in the supply of a talented workforce. With leaders from
Intel, Qualcomm, Ampere, and ARM also in attendance, he said that US
corporations are willing to develop ties and increase investment in Vietnam,
particularly in training workers to the highest possible skill levels. Vietnam
presently has 6,000 semiconductor engineers, with a target of training 50,000
by 2030. Vietnam is also the world's second largest exporter of mobile phones
after China.

 

Vietnam recently welcomed Chinese president Xi Jinping for a state visit to
Hanoi on the 15th anniversary of the establishment of a 'comprehensive
strategic partnership' between the two countries. This followed US president
Joe Biden's own visit a few months earlier when Vietnam upgraded its
relationship with the US to the same partnership status. China is Vietnam's
largest trading partner and second largest export market, after South Korea,
and is now a major source of foreign investment in Vietnam. The historic visit
set new tones for what is to come in 2024 as both countries agreed to build a
'shared future' and strengthen their bilateral relationship.

 

November also saw positive results for Vietnam's equity market, with the
benchmark VN Index gaining +6.4%. This was mainly due to eased FX risk and
ample liquidity despite the ongoing volatility stemming from recurring rumours
about corporate investigations. The outlook for further stock market increases
is promising. Vietnam's government has been paving the way for stronger
domestic consumption in 2024 and has implemented multiple measures to support
the economy, including lowering interest rates, deferring loan payment
timelines and cutting value added tax. Plans to change the property laws in
order to unwind the bottleneck in project development are also expected to set
the ground for a new growth cycle.

 

VNH's NAV rose 12.7% in November, outperforming VNAS (+9.0%). Year to date the
fund is the top-performing Fund in Vietnam, with the discount to NAV the
narrowest of the three London-listed Vietnam funds.

 

VNH has convened an annual general meeting (AGM) and an extraordinary general
meeting (EGM) for the 21st of December 2023 in Paris and would like to remind
shareholders of the trust's five-yearly continuation vote and proposed annual
redemption facility, which is aimed at further narrowing the discount of the
company's share price to net asset value. The Company's notice of AGM and EGM,
released on 27 November 2023, can be found here
(https://dynamcapital.us3.list-manage.com/track/click?u=c9b86dd32ea17807a975e10f8&id=3494aed9a8&e=a81d6ed073)
.

 

 

 

 

 

 

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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