REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

13/08/2024 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240813:nRSM2280Aa&default-theme=true

RNS Number : 2280A  VietNam Holding Limited  13 August 2024

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

Monthly Investor Report

A report detailing the activities of the Company for the month of July 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/t10htezh/vnh-investor-report-july-2024.pdf)
 and a summary of the report is included below.

Manager Commentary: Sideways

Recent turmoil in the global markets make July seem like a lifetime ago, but
it was far from a boring month for Vietnam, which continued to show
sustainable economic growth and enjoy yet another record high accumulated
trade surplus - US$14.1 bn for the first seven months of 2024 (7M2024).
Exports increased by 15.7% year-on-year (YoY) for the same period, underlining
the ongoing increase in global demand for 'made in Vietnam' goods. The main
drivers in July were tourism and hospitality and food services given the rise
in domestic trave. With higher PMIs, a stabilising currency and healthy
liquidity in the banking system, the economic growth momentum in Vietnam is
expected to continue throughout the second half of 2024 despite global
economic uncertainties, such as the upcoming US elections.

July saw the passing of Nguyen Phu Trong, the former General Secretary of the
Party who was behind many of the positive reforms made in Vietnam in recent
years. The world saw a calm changing of the guard with To Lam stepping in when
Trong's sickness escalated. To Lam comes from the Ministry of Interior and is
a former police officer, so we expect anti-corruption measures to continue.

Vietnam's equity market mostly went 'sideways' in July with rising volatility.
The VNIndex has become relatively cheaper considering the 18.5% earnings
growth of the whole market in Q2 and Vietnam stocks are even more attractive
now in terms of valuation for long-term growth. The Fund ended the month with
a NAV per share of +0.1% due to the outperformance of selective banks and
retailers. Mid-caps and small-caps in the real estate, financials,
industrials, and construction sectors underperformed as local investors took
profit and reduced margin borrowings. Foreign investors also continued to
sell. While the outflow was relatively small compared to the daily market
liquidity, sentiment still dampened as a result.

Our nimble (and award-winning) portfolio management style allows us to
navigate across a range of company sizes, which we believe has contributed to
our outperformance versus the index and our peers. At times we have taken
profit in sectors that have surged and have also acted swiftly when market
moods and economic forces move. For example, we believe Vietnam's economy is
at an inflection point and that the consumer sector is set to expand
substantially in coming years. During the pandemic we saw slowing
manufacturing, increasing interest rates and rising expenses impact consumer
demand in a variety of industries, prompting us to adjust our portfolio
accordingly. Now, with this year's steady recovery and the government's
ongoing stimulation efforts, we have been adding to the consumer sector again
as our research indicates better trading potential.

We regularly assess the performance of our portfolio companies on ESG factors,
in addition to their financial performance, and will be reporting on this
later in the year. The banking sector is the largest overall segment of the
portfolio, and five banks are in our top ten holdings. Most have increased
their activity in the ESG space, and many are making notable progress in
committing to the UN's Sustainable Development Goals by providing loans and
other retail and investment products linked to environmental and social
matters. Over the past year we have also seen increasing competition among
banks when it comes to ESG reporting, with MBB, ACB, and VPB taking the lead.
We also expect to see more Vietnamese banks using AI to enhance customer
experiences and bring new products and services to the market. This is
something we will be eyeing across all sectors. Digitalisation is here to
stay.

On August 8th we hosted a webinar to discuss Vietnam's role in the global AI
and semiconductor supply chain with FPT, our largest portfolio holding. A
recording can be viewed HERE (https://vimeo.com/997626807) .

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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DOCQKNBPPBKKNFD