REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

16/07/2024 07:15

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RNS Number : 5578W  VietNam Holding Limited  16 July 2024

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

Monthly Investor Report

A report detailing the activities of the Company for the month of June 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/dqiedtth/vnh-investor-report-june-2024.pdf)
and a summary of the report is included below.

Manager Commentary: New Era of Growth

Vietnam enjoyed accelerated growth during the second quarter of 2024 (2Q2024)
with sustainable recovery across sectors driving GDP up by 6.9%, the second
highest second quarter surge since 2019. In fact, June proved how the
country's economic growth has been bolstered by resilient rebounds of exports
in key products - not least in computers and electronics, up 28.6%
year-on-year (YoY) - across all major markets.

GDP growth for the first half of the year (1H2024) was +6.4% YoY thanks to
sustained industrial production, effective inflation control measures, and
ever-increasing foreign investment. Although the industrial production index
showed slower growth in the first quarter of 2024 compared to pre-pandemic
levels, efforts to boost manufacturing activities have only intensified
throughout 1H2024 and we saw Vietnam's PMI climb to a near record high in
June. The Vietnamese government and local authorities have been actively
supporting enterprises by facilitating access to new raw material sources and
markets, as well as implementing incentive policies for businesses facing
production and export challenges amidst the many global economic uncertainties
today.

As anticipated, foreign direct investment (FDI) disbursement in Vietnam
continued to flourish in June, reaching US$10.8bn for 1H2024, up +8.2% YoY,
the highest rise for the first half of a year since 2012. Furthermore,
disbursed FDI is forecast to increase 10% per annum throughout 2024 to 2026
due to large registrations recorded in 2023. Vietnam remains in an
increasingly attractive position in terms of location, its educated workforce
and growing middle class, plus the fact that multinational companies continue
to diversify supply chains from China. Recent upgrades of diplomatic ties
between Vietnam and the US, Japan, and Australia, are also strengthening its
role in global trade.

Vietnam continued to reap healthy retail sales in June, up +9.1% from May.
This stems mainly from hospitality, food services and tourism, with
international arrivals jumping a massive +58.4% YoY in 1H2024, +4.1% above the
pre-pandemic level. Indeed, Vietnam's wider consumer services sector has been
crucial to driving growth this year, contributing 43.4% of GDP in June, and
thus reflecting a broad-based recovery in domestic consumption and services.
Increased public investment, up 4.8% for 1H2024, has played another
instrumental part in the country's growth story by enhancing connectivity and
supporting manufacturing activities. According to the Ministry of Finance,
there was a fiscal surplus of US$9.5bn in the first five months of 2024
(5M2024), further enabling the government to do more to bolster economic
recovery. We expect credit growth in 2024 to be around 13-15% and the
government to continue easing monetary and fiscal policy throughout the second
half of the year.

Vietnam's stock market showed an overall solid performance in 2Q2024, with
significant gains across various sectors, particularly in technology which has
been dominated by digitalisation and AI developments. The VN-Index was up
10.2% YoY in 2Q2024, outperforming the MSCI EM Index and neighbouring markets
and still offering attractive valuation for long-term growth versus peers. In
June, it briefly crossed 1,300 points for the first time since 2022, even
though market indices went sideways as most local investors were waiting for
Q2 business results. Investor enthusiasm in technology continues apace, not
least after a NVIDIA delegation visited the country and announced various
collaborations with companies, such as FPT, VNH's top holding. Although the
portfolio also went sideways in June given local investors' sentiment, FPT
performed exceptionally well as investors were willing to pay a premium for
Vietnam's fast-growing IT sector and how it facilitates the world's rapid
green and digital transformations.

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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