REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

20/03/2024 07:15

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RNS Number : 5664H  VietNam Holding Limited  20 March 2024

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

Monthly Investor Report

A report detailing the activities of the Company for the month of February
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/2dlnqloz/vnh-investor-report-february-2024.pdf)
and a summary of the report is included below.

Manager Commentary: The Sky's the limit

Vietnam's trade surplus reached another new high in February and its US$265
billion stock market rallied for a fourth consecutive month. The resilient
rebound in exports was once again led by electronics, while sustained growth
in retail sales was driven mainly by hospitality and tourism amid increased
travel during the festive Tet season. The country's PMI also expanded for a
second month running, despite China's slowdown causing some ripple effects in
the region. Post-Tet investor confidence remains high. In the opening session
of Giap Thin Lunar New Year, the VN-Index officially surpassed the 1,200-point
mark, paving the way for a more prosperous year for Vietnam's stock market. In
February, the bullish sentiment started in the banking sector, which continues
to maintain healthy liquidity, then spilled over into other sectors - all
together pushing Vietnam's indices to their highest level since May 2022.
Liquidity hovered around US$1bn from mid-February, resulting in a whole month
average of US$758m, a month-on-month rise of +23%.

 

Recent media reports have touted Vietnam's stock market a 'positive growth'
market as it continues to outperform neighbouring countries. Vietnam's
consensus 2024 GDP growth forecast of 6% is the highest in Southeast Asia
thanks largely to ongoing policy developments. The government continues its
effort in directing ministries, sectors, and municipalities to focus on
sustainable growth, for example, by creating favourable conditions for
businesses, spurring on a more open, transparent market, and making
improvements to HOSE. Improvements to address the 'pre-funding' of brokerage
accounts should allow Vietnam to be upgraded to a FTSE Russell Secondary
Emerging Market by 2025.

 

VNH's portfolio remains well-positioned for such accelerated growth, with its
NAV up +7.8% in February due to our overweight in outperforming sectors,
particularly banks, telecoms, retail, and industrials. The Fund has
outperformed for 1, 3, 5 and 10 years.

 

VNH is also monitoring Vietnam's green initiatives, including how it enhances
its cooperation on renewable energy development with other countries and
foreign businesses following the approval of the government's Power
Development Plan VIII (PDP8) last year. For instance, at the end of February
it formerly upgraded its already well-established trade pact with Australia
with more sustainability provisions. Vietnam's green economy has significant
growth potential due to its growing middle class, business landscape, and
natural resources, and the two countries' national goals align with each
other, with Vietnam aiming for net zero emissions by 2050 and Australia
reducing its reliance on coal and gas exports. As part of this agreement, the
Australian government pledged funding to help Vietnam reach its climate goals,
with an A$105m package toward clean energy adoption and infrastructure and
A$94.5m dedicated for climate change adaptation in the Mekong Delta. With
foreign direct investment (FDI) also rising sharply in Vietnam - registered
FDI jumped 38.6% year-on-year in February and dispersed FDI reached its
highest level in five years - we expect to see further sustainable financing
for ensuring the country achieves its energy transition and meets its climate
pledges.

 

We are hosting an online investor webinar on March 26th at 10:00 UK time. Join
here
(https://www.lsegissuerservices.com/spark/VietnamHoldingLtdGuernsey/events/67bf783c-e81c-4a2a-9d40-450ea128b5a5)
.

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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