REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

20/01/2025 07:15

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RNS Number : 9277T  VietNam Holding Limited  20 January 2025

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

Monthly Investor Report

A report detailing the activities of the Company for the month of December
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/jpcho0bn/vnh-investor-report-december-2024.pdf)
and a summary of the report is included below.

Manager Commentary: 2024 was a pivotal year for Vietnam

December 2024 proved to be another record-breaking month for Vietnam. Its
economy showed robust growth, with GDP expanding by 7.09% in 2024 overall-much
more than the expected 6.5%. This was mainly due to the country's resilient
manufacturing sector amid unprecedented global challenges, from geopolitical
uncertainties and extreme weather disruptions to rapid digital transformations
and fast-changing stakeholder needs. 2024 also marked a notable improvement
from the 5.05% growth recorded in 2023. Indeed, the fourth quarter alone in
2024 saw a 7.55% increase, the fastest quarterly expansion in over two years.
The impressive economic growth momentum helped Vietnam shine bright compared
with other nations in the region, and this is expected to continue in 2025
despite emerging external threats, such as the structured slowdown of China, a
likely trade war sparked by US president Trump's tariffs and interconnected
global interest rate and FX risks. Vietnam's government is aiming for 8.0% GDP
growth this year with a strategic focus on increasing productivity. We believe
its various policy initiatives coupled with renewed positive sentiment and
investor demand will support stronger domestic consumption fuelled by
disbursement of public investment.

December demonstrated how Vietnam continues to position itself as a modern
industrialised nation with, for example, new criteria for high-tech
investments having come into effect late in the month and AI technology
champions feted by the country's corporate awards. We expect significant
technological advancements in 2025 with Vietnamese banks and retailers already
digitalising more but also with even greater foreign direct investment in
related projects. For instance, Vietnam is awaiting the potential investment
of US$1.5 bn from Elon Musk's SpaceX - for its Starlink satellite internet
services. This will pave the way for more digital developments across the
country and underline its significance as a key satellite internet market in
Southeast Asia, offering SpaceX access to its increasingly tech-savvy
population and expanding digital economy.

Additionally, public investment for 2024 reached a record US$26.5 bn and Ho
Chi Minh City's first metro-line saw an encouraging mass adoption of over 1
million users in its first few weeks of operating. To round things off,
Vietnam also beat Thailand in the final match of an international soccer
championship, boding well for the country as the year of the dragon comes to
an end and the snake edges closer. Vietnam's stock market mirrored the
country's economic vigour with some notable infrastructure and corporate
governance improvements in 2024, for example, with new amendments to the
Securities Law. The revised legislation enhances market transparency and
strengthens oversight against fraud, setting the stage for Vietnam's stock
market to achieving emerging market status. There was also the implementation
of Circular 68/2024/TT-BTC allowing foreign institutional investors to
purchase shares without upfront payment in specific cases, raising even more
optimism for 2025. Such advancements have boosted investor confidence and with
anticipated earnings per share growth of >20%, the highest in ASEAN,
analysts expect the stock market to continue this positive trajectory.

VNH also has reasons to celebrate having outperformed the index for all of
2024 and recording another year of strong Alpha generation, despite the 4.8%
devaluation of the Vietnam Dong against the US dollar. The Fund won three
investment awards in 2024, and it is worth noting that its share price has
been trading at a premium to net asset value - one of a few country funds to
do so. The Fund has been issuing new shares to meet investor demand - the
first time a London-listed Vietnam-focused fund has done so for well over a
decade.

As our chairman noted in a recent podcast episode
(https://ukinvestormagazine.co.uk/vietnam-holding-leading-the-peer-group-in-2024-and-the-2025-outlook/)
with UK Investor Magazine, 'Leading the peer group in 2024 and the 2025
outlook', "We've got some great portfolio champions, but we're also on the
lookout for some new rising stars to complement that, so we have a busy but
exciting year ahead."

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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