REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

21/03/2025 07:15

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RNS Number : 4648B  VietNam Holding Limited  21 March 2025

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

Monthly Investor Report

A report detailing the activities of the Company for the month of February
2025 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/pozlqvgx/vnh-investor-report-february-2025.pdf)
 and a summary of the report is included below.

Manager Commentary: The dogs of war

Trump's 2.0 trade war dominated the world in February and although Vietnam
benefited from tensions between the US and China during the President's first
administration, it was clear that no country would be immune from the battle
of tariffs today.

Despite the inevitable stock market fluctuations and slower than usual
manufacturing momentum, Vietnam's economy managed to hold strong, and the
government was determined to take diplomatic and economic steps to ensure the
country's fundamentals were least affected. Vietnamese Trade Minister Nguyen
Hong Dien met with US energy and trade officials to review adaptation plans,
such as boosting collaboration in several areas and expanding imports of US
agricultural products and liquefied natural gas. In another example, the Civil
Aviation Authority of Vietnam proposed recognising Chinese aircraft
certifications to help diversify its aviation sector, strengthen regional
ties, and strategically counterbalance global trade risks.

Nevertheless, the real backbone of Vietnam's economy amid all the tariff
announcements in February was the sustained flow of registered FDI, which
reached US$6.9bn, reflecting a 35.5% year-on-year (YoY) increase for the first
two months of the year (2M2025). Global manufacturers still see Vietnam as an
alternative to China with companies like Samsung and Foxconn continuing to
expand their operations and show confidence in the country's long-term
potential as a resilient manufacturing hub. In February, Samsung Display
invested US$1.2bn in additional registered capital.

Tourism also helps offset external risks and reinforce Vietnam's position as
more than just a manufacturing destination. Tet spurred a significant increase
in international arrivals, up +23.7% YoY in February. This bodes well for
retail, food services and the hospitality sector. We expect tourism to
continue to be a powerful growth engine for Vietnam regardless of the
fast-shifting trade trends.

Public investment was another strong defence throughout the month. Despite the
rising geopolitical tensions and unlike previous crises, where public
investment often slowed in response to global shocks, the government stayed
firm on public spending plans. February saw steady progress on major smart
city developments, including projects in Hanoi's Hoa Lac Hi-Tech Park and Thu
Thiem Urban Area in Ho Chi Minh City, both crucial in building Vietnam as a
modern-day tech and financial centre. Additionally, the Vietnamese government
continued to press ahead on renewable energy and high-speed rail projects,
guaranteeing that these areas would continue to attract investment.

As our most recent Viva Vietnam post
(https://www.linkedin.com/pulse/vietnam-secures-its-ai-future-talent-tech-ambition-dynamcapital-eersc/?trackingId=r3%2FaqTfmQACjAkAmQxiMGQ%3D%3D)
discusses, Vietnam's burgeoning AI sector can also help mitigate the country's
vulnerability to trade war threats by increasing productivity in areas such as
manufacturing, banking, and logistics. Companies like FPT, our largest
holding, have been developing a wider range of AI-powered automation solutions
to improve efficiency. We also see Vietnam's AI push becoming more evident in
financial services, where banks like TCB and VPB are using AI across a wider
range of functions to streamline operations, enhance cybersecurity, and
improve credit risk analysis. These investments not only stimulate financial
sector growth but also provide a hedge against external economic shocks.
Vietnam is catching up rapidly with AI leaders like Singapore and South Korea.
While it may not yet have the same level of AI infrastructure, strong
government support and foreign investment in startups, including new M&As
in education and healthcare, positions Vietnam as a key player in Southeast
Asia's increasingly AI-focused economy.

Despite the short-term volatility caused by tectonic trade shifts and
uncertain economic times, Vietnam's internal growth drivers continue to offer
opportunities for selective investment. The country is not just enduring the
storm but evolving into a more balanced, self-sustaining economy. And February
showed that it can adapt and thrive as the current trade war saga continues in
2025.

The Fund's NAV fell 2.2% during the month, underperforming the index, as
domestic investors returned to some key index stocks we don't hold, and
foreign investors continued to sell-off some of our conviction names.

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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