REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

26/11/2024 07:15

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RNS Number : 6612N  VietNam Holding Limited  26 November 2024

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

Monthly Investor Report

A report detailing the activities of the Company for the month of October 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/fcanciqj/vnh-investor-report-october-2024.pdf)
 and a summary of the report is included below.

Manager Commentary: Sustaining strong growth in a shifting world

As we wind down a year dominated by geopolitical conflicts and national
elections around the world, the story in Vietnam for now remains removed from
ever-evolving global uncertainties. To start, 'China plus one' keeps getting
better for the country's economy. In October, it maintained its robust
economic run in 2024, with another record high trade surplus of US$23.3bn for
the first 10 months of the year (10M 2024). Although growth in electronics and
wood products slowed, other crucial export industries such as apparel and
footwear showed improvement.

Additionally, in a report presented by the Prime Minister at the 8th session
of the 15th National Assembly, the government said it estimates GDP growth in
2024 to reach 6.8%-7.0%, higher than the plan of 6.0%-6.5% set at the
beginning of the year. It now aims to achieve GDP growth that surpasses the
plan for 7.0-7.5% in 2025 in order to rank 31st-33rd globally (in terms of
GDP) by this time next year. It announced ambitious targets for the period
2026-2030, with GDP growth aimed at 7.5%-8.5%, compared to 6.5%-7.0% for
2021-2025.

The country's General Secretary, To Lam, said "Vietnam is entering an era of
national advancement". His statement and the grand plan for the period of
2026-2030 demonstrates the Vietnamese leadership's strong determination to
drive socio-economic development through 2030.

VNH also stayed on its positive trajectory, having won both the Citywire and
Investment Week investment company awards - for best emerging market fund, and
outperforming the index year-to-date, 15.7% versus 9.6% for the market. In an
interview, Craig Martin, chair of Dynam Capital, VNH's investment manager,
discussed the US election, AI and Vietnam's fastest-growing sectors.

"Banks are a fascinating play on the broader economic growth in a country like
Vietnam. Not every opportunity is captured in the stock market, but banks play
to all those opportunities. Plus, Vietnam is under-banked. Until about two
years ago, there were more Facebook accounts than bank accounts, but now
that's changing. Vietnamese banks are actively looking at digitalisation tools
and drawing more people into the banking system, so it's high growth and yet
the banks themselves are very attractively priced on maybe one times
price-to-book. There is excellent value and good growth. If you're very
selective, you can find some excellent opportunities in the banking sector."

Although there is no doubt that global trade will shift under the new Trump
administration, we believe Vietnam's position in Southeast Asia's emerging
industrial stage will remain strong on a global scale. Vietnam has established
itself as a manufacturing behemoth over the past decade, attracting billions
in foreign direct investment (FDI) from companies looking to diversify
production beyond China. It also is worth noting that nearly 40% of all ASEAN
exports to North America come from Vietnam. In addition, Vietnam's
semiconductor industry is establishing itself as participant in the global
technology supply chain, thanks to the government's consistent support and
well-defined strategy. For example, Samsung and Intel have increased their
investments in Vietnam in response to US restrictions on Chinese technology,
thereby increasing the capacity of an industry that is expected to generate
US$100bn in revenue by 2050.

Several of the companies in our portfolio come from the services sector so are
business-to-business and leveraging on these opportunities in Vietnam.
Consequently, we see top-level growth and only a modest increase in their
underlying operational cost structure, which is resulting in a high return on
capital employed. So, while external geopolitical and economic risks may
continue to loom, the Fund remains well-positioned for the growth expected for
the rest of 2024 and into 2025.

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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