REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

21/05/2024 09:45

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RNS Number : 2818P  VietNam Holding Limited  21 May 2024

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

Monthly Investor Report

A report detailing the activities of the Company for the month of April 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/wmpdnzyc/vnh-investor-report-april-2024.pdf)
 and a summary of the report is included below.

Manager Commentary: April's Movers and Shakers

Vietnam's stock market weathered a sharp correction in April with some
expected profit taking after a five-month rally. From the new KRX trading
platform launch being further delayed because of technical issues to the
sudden resignation of the Chairman of the National Assembly - a mix of
headline news rattled the market, 90% of which is driven by local investors.

The changing global outlook to 'higher for longer' US interest rates also
fuelled greater volatility in the FX market, while growing global geopolitical
risks caused movements in crude oil and gold prices. With evolving
uncertainties around the wars and an unprecedented number of national
elections around the world this year, global stock markets experienced
declines as well - the Dow Jones (-5.0%), Nikkei 225 (-4.9%) and S&P
(-4.2%) - adding to an already unsettling local sentiment. Nevertheless, the
VN-Index managed to recover nearly half of the drawdown by the end of the
month. Although down -5.9% for the month, VNH still managed to outperform the
index and remains significantly ahead of the index year-to-date, and on a 1,
3, 5, 10 (and even 15)-year basis.

The 'made in Vietnam' theme continued to propel the country's sustainable
economic growth with yet another record trade surplus, reaching US$8.4 bn in
April. Vietnam's exports to the US made a notable year-on-year increase of
19.1%, and its manufacturing PMI recovered to 50.3 from 49.9 in March mainly
due to a solid rebound of new orders which should pave the way for further
production and enhanced exports in coming months. It is also worth noting that
foreign direct investment (FDI) implementation continued to rise for a 15th
consecutive month, resulting in a year-on-year (YoY) increase of 7.4% for the
first four months of 2024 (4M24). Disbursement in the Real Estate sector
surged by a whopping 100% YoY for the 4M24 period, contributing the most to
FDI implementation growth year to date.

During the volatile trading month, stocks tumbled across all sectors apart
from Transportation, Consumer Services and Technology. FPT and Gemadept, our
top two positions both made gains of 2.9%. FPT attracted additional positive
media attention in April having signed a MoU with Nvidia to invest US$200m in
building a cloud computing platform for AI research and development in
Vietnam. Narayana Murthy, the billionaire co-founder of Infosys (and
father-in-law of UK Prime Minister Rishi Sunak) will visit Vietnam, and FPT,
in May.  Gemadept reported better than expected first quarter results.
Despite high beta sectors such as Banks, Financial Services, Real Estate and
Construction performing poorly, most investee companies reported Q1 2024
earnings growth in line with expectations. We took the opportunity in the soft
market to add to a couple of positions where more foreign investor room became
available.

The usual concerns about global risks are bound to affect market sentiment in
May but opportunities will continue to emerge in Vietnam not least where FDI
is concerned. Vietnam continues to be a magnet for foreign enterprises seeking
investment opportunities and strategic partnerships across sectors. According
to the General Statistics Office, disbursed foreign investment in Vietnam
reached US$6.28 bn in 4M24, the highest in five years. Vietnam also recorded
over 51,000 newly established enterprises during this period. So, considering
the significant 28.8% increase in the number of new projects in 4M24 -
totalling US$7.1 bn, a 73.2% rise in capital on the same period last year -
the mood in May could tell a different story.

The National Assembly is also meeting in May and will consider and decide on a
raft of important matters, including appointing a new Chairman, and a new
President. This may further strengthen domestic investor confidence.

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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