REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

22/02/2024 07:15

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RNS Number : 0722E  VietNam Holding Limited  22 February 2024

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

Monthly Investor Report

A report detailing the activities of the Company for the month of January 2024
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/4g0lazka/vnh-investor-report-january-2024.pdf)
 and a summary of the report is included below.

Manager Commentary: Banking on the Year of the Dragon

As figures for January show, Vietnam's macro-economic landscape provides a
promising setting for growth in the Year of the Dragon. To start, the country
celebrated a significant trade surplus of USD2.9bn in the first month of 2024,
with both exports and imports posting the strongest growth seen over the past
two and a half years.

 

Exports of electronic items led this jump, with high shipments of products in
general to all key markets. The momentum in retail sales also continued from
the month before, with a solid 8.1% year-on-year (YoY) rise despite the high
base given Tet fell in January in 2023. The sustainable growth was driven
largely by travel services, which had a stunning rebound, even marginally
exceeding pre-Covid levels.

 

Manufacturing activity in Asia overall improved considerably in January,
particularly in Vietnam and South Korea, as stronger demand from major markets
offset the slump in China. For the first time in five months, Vietnam's PMI
rose over 50.

 

Increases in Vietnam's foreign direct investment (FDI) and public investment
disbursement in January are also worth highlighting. Registered FDI reached
USD2.4bn, up 40.2% YoY, the highest level seen since 2020. Much of this rise
came from new commitments, indicating a strong start to the year, with more
than half coming from the property industry. Furthermore, public investment
increased by 12.5% YoY, accounting for 4.4% of the 2024 plan, and we expect
this to remain one of the government's primary priorities in 2024.

 

With liquidity further easing and inflation cooling, favourable effects of
Vietnam's monetary policy are likely to become even more effective for its
economy in 2024. Plus, in terms of building greater trust, the Vietnamese
authorities' anti-corruption effort continued to hit headlines in the few
weeks of 2024 with several significant events in both the public and private
sectors.

 

For example, the People's Court in Ho Chi Minh City installed security cameras
and additional fire safety equipment to safeguard six tonnes of files related
to the Van Thịnh Phat scandal. The municipal Party Committee also said that
it will compensate persons who report corruption with up to VND 10m (USD 420)
"if their information is accurate and helps the competent agencies verify and
handle corruption and negative acts." In addition, the Ministry of Home
Affairs issued a regulation declaring that top government personnel should not
seek "fame or power".

 

As Vietnam's stock market rally continued, January proved positive for Vietnam
Holding as well, as it once again outperformed with a NAV of +2.4 versus
VNAS's 1.8%. January's gains were largely about the banks, which have been
benefiting from improved credit over recent months. The Fund is
well-positioned for growth in 2024 with a modest price-to-earnings ratio of
10x and strong forecast earnings per share growth of 32%.

 

It is worth noting that the Fund has the narrowest discount (by far) of the
three London-listed Vietnam focused funds, another compelling reason to feel
good about the year ahead. At time of writing the discount has narrowed to 3%,
and the share price has hit an all-time high. The Chairman of Dynam Capital,
Craig Martin, will be in London, Edinburgh and Guernsey between March 18-22,
do reach out if you would like to meet up in person.

 

We wish all investors a safe and prosperous lunar new year, and welcome the
Wood Dragon.

 

 

 

 

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

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