REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

25/09/2025 07:02

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RNS Number : 7493A  VietNam Holding Limited  25 September 2025

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

Monthly Investor Report

A report detailing the activities of the Company for the month of August 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/sm0bl0tg/vnh-investor-report-august-2025.pdf)
and a summary of the report is included below.

Manager Commentary: Wake me up when September ends

August struck all the right chords for Vietnam's equity market. The VN Index
edged higher towards record levels, orchestrated by strong corporate earnings,
rising liquidity, and growing anticipation ahead of the FTSE Russell review.
For global investors, Vietnam's potential upgrade from Frontier to Secondary
Emerging Market represents more than just a reclassification, it's a
structural crescendo that could unlock passive flows and significantly enhance
the market's global integration. Vietnam's macro performance remains in
perfect harmony.

The economy delivered 6.93% growth in Q1 and 7.96% in Q2 2025, marking the
highest first-half of year performance since 2011 at 7.52%. This momentum sets
Vietnam firmly on course for robust full-year growth, supported by a resilient
industrial base that expanded nearly 9% Year-on-Year (YoY). The export engine
continues to drive performance, with exports surging about 18.0% YoY in Q2 to
reach US$116.9bn. This strong trade performance contributed to a substantial
trade surplus, whilst Foreign Direct Investment (FDI) disbursements reached
US$15.4bn in the first eight months of 2025 - the highest level for this
period in five years. These fundamentals underscore Vietnam's economic
resilience at a time when global trade frictions create uncertainty
everywhere. The government's commitment to structural reform remains
unwavering, advancing its US$36bn public investment programme alongside
financial sector modernisation. The International Financial Centre (IFC)
initiative, which came into effect on 1 September 2025, provides the legal
framework to establish IFCs in Ho Chi Minh City and Danang. Underpinned by
infrastructure investment, international-standard legal frameworks, and tax
incentives for skilled professionals, the IFC represents a clear policy
commitment to capital market development and deeper global financial
integration. Digitalisation emerged as August's standout theme, with
Vietnamese banks embracing technology at unprecedented scale. VNH's holding MB
Bank (MBB) has positioned itself as a leader in this digital transformation,
rolling out platforms that are fundamentally reshaping the customer experience
and driving both efficiency and growth.

VNH continued to hit high notes in August with NAV per share rising by 12.7%.
The banking sector provided the strongest chorus with standout performances
from MBB, ACB, and VPB. Additional contributions came from our real estate
positions (VHM, KDH). FPT Corp continues its role as Vietnam's flagship IT
services company, expanding both domestically and internationally. However,
the Fund has strategically reduced its FPT position during the year, taking
profit on a position that has contributed to portfolio growth for over a
decade. When we first invested, FPT was a mid-cap company; today it stands as
a large blue-chip. While it remains a well-managed company, like other global
software outsourcing firms, FPT faces both opportunities and challenges from
AI disruption. Rapid developments in coding tools and large language models
are reshaping project budgets and client behaviour. Our rebalancing allows VNH
to maintain exposure to digitalisation trends while prudently managing
technology transition risks and allocating capital to emerging opportunities
across Vietnam's evolving economy.

FTSE Russell's classification system is likely to confirm the upgrade in
October. An upgrade would automatically include Vietnam in indices like FTSE
All-World, FTSE EM, and FTSE Asia, requiring passive funds benchmarked to
these indices to purchase Vietnam equities. This external catalyst, combined
with easing domestic policies, sector-specific trade agreements, and ongoing
structural reforms, creates a supportive backdrop for continued growth. While
risks, including global trade friction and commodity price volatility, remain,
Vietnam's fundamental growth story stays intact. As September unfolds,
Vietnam's market mood combines optimism with expectation. Investors may be
holding their breath for the upgrade announcement, but the real awakening
could well come when September ends. While Green Day once sang about waiting
out the month for Vietnam's equity market, the outlook suggests the tune might
be less about fading away and more about gearing up for the next big stage.
Fundamentals are strong, reforms are taking hold, and market positioning looks
compelling. Sometimes the best performances come not during the waiting, but
when the waiting finally ends.

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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