REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

19/09/2024 07:15

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RNS Number : 8474E  VietNam Holding Limited  19 September 2024

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

Monthly Investor Report

A report detailing the activities of the Company for the month of August 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/gxideu4m/vnh-investor-report-august-2024.pdf)
 and a summary of the report is included below.

Manager Commentary: Building resilience and seizing opportunities

As Typhoon Yagi dominated the news in August, the resilience of the people of
Vietnam was again recognised around the world. The ways in which the
government and society at large responded to the flood-hit communities in the
north of the country made headlines. However, the devastating storms also put
the need for climate transition risk planning under the spotlight. While the
government's various green initiatives, including the Power Development Plan 8
(PDP8) to phase out coal power by the 2040s, are encouraging, there still are
many pockets of opportunities for Vietnam to strengthen its climate
resilience, for example, through embracing further energy renewables,
leveraging circular approaches to decarbonisation or making best use of
open-source solutions offered by digital technologies. The green and digital
transformations are crucial to economic growth today and, as they accelerate,
the interconnectedness of the two is where we see great potential for both
businesses and policy makers, as well as foreign investors. From advancing
nature-based solutions to smart city innovations, technology can propel
Vietnam's strategies for meeting its environmental and social goals.

It is worth mentioning that back in April two Harvard professors, who were
speaking at a Vietnamese delegation discussion titled 'Multiple Crises and
Prospects for Economic Growth to 2030', said Vietnam's resilience is one that
"few can rival". The professors praised the country's efforts to develop
technological solutions for the challenges ahead, including a digital
deforestation-free business ecosystem and a pilot programme testing the
approach to replacing coal used in the cement industry with non-recyclable
plastic.

Vietnam managed to prove strong economic resilience in August, despite the
extreme weather. Its PMI surged to a near record high with the index of
industrial production (IIP) rising 9.5% year-on-year (YoY) and the
manufacturing sub-sector IIP increasing 10.6% YoY.

As the sustainable recovery of global demand continued, Vietnam reached a
US$19.1 bn trade surplus and ongoing solid new orders, reported by S&P
Global's PMI report, suggest that production and exports could continue
growing further throughout the second half of 2024 (2H2024).

 

Vietnam's stock market also managed great strides in August, making a
significant rebound following the sharp correction that global volatility
sparked earlier in the month. A weaker dollar and the expected Fed rate cuts
supported this positive sentiment, and although the VNIndex stayed flat for
the year, the earnings outlook steadily improved again for a third consecutive
month.

VNH's NAV per share was up +3.9% in August with the outperformance of Retails,
Financials and Telecoms. While most sectors made positive gains, VNH increased
positions in Retails, Financial Services, and Banks with an expectation that
these will continue to benefit from the stronger recovery of the economy in
2H2024. The Fund remains underweighted in Residential Property and overweight
in FPT, which is a model company when it comes to corporate responsibility and
embedding environmental, social and governance (ESG) into all it does. The
company has been applying various measures to minimise its environmental
impact by reducing energy consumption and greenhouse gas emissions, such as
monitoring 100% of energy usage data and replacing 100% of office waste bags
with recyclable materials, while ensuring all employees receive annual
training on environmental protection policy. See their recent ESG report
(https://bctn2022.fpt.com.vn/en/report/ESG-orientation) as an exemplary
sustainability journey for Vietnam corporates, and also our recent webinar
recording (https://vimeo.com/997626807) where the company expands more on
their approach to AI and Semiconductors.

The UK's Daily Telegraph recently featured the Fund, see here
(https://www.vietnamholding.com/media/rjjh5204/12352-tel_dynamcapital_12092024-a.pdf)
.

We thank all shareholders for their continued trust and support.

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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