REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

26/05/2026 07:02

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RNS Number : 5453F  VietNam Holding Limited  26 May 2026

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

Monthly Investor Report

A report detailing the activities of the Company for the month of April 2026
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/q4ihnsv1/vnh-investor-report-april-2026.pdf)
and a summary of the report is included below.

Manager Commentary: The heat is on (in Saigon)

April felt like a continuation of the same story, just with the temperature
turned up a notch. Not only in the literal sense, but also in the equity
markets too. While global uncertainty has inevitably become a normal part of
the backdrop, Vietnam's domestic story continues to hold together. It posted a
7.83% GDP growth in Q1 2026, a strong start of a very volatile year. Trade
activity remained robust in April, with exports up 19.7% and imports rising an
even hotter 28.7% Year-on-Year (YoY) over the first four months (4M2026). Even
though this has resulted in a trade deficit, it is the kind we have seen
before, reflecting high levels of "productive imports" - machinery and
intermediate goods coming in ahead of production - that typically feed through
into export strength in subsequent quarters. In other words, we are talking
about a sign of activity than of weakness. At home, demand continues to play
its part. Retail sales rose 12.1% YoY in April and 11.1% in 4M2026,
underlining the steady rhythm to recovery in consumption. This is a theme we
remain particularly constructive on, especially as consolidation in the retail
sector begins to favour larger, more efficient operators. Companies such as
Mobile World Corp, our top holding, continue to demonstrate how scale and
operational discipline can translate into margin recovery as the cycle turns.
Foreign direct investment (FDI) has been another pillar of confidence.
Registered FDI reached USD18.2bn in 4M2026, up 32% YoY. It is a useful
reminder that, despite the global geopolitical issues, companies are still
committing capital to Vietnam and its role in global supply chain
diversification. That said, the external environment is beginning to come
through in the data. Inflation moved up to approximately 5.5% in April, mainly
due to higher energy costs linked to disruptions in the Middle East. Vietnam
is not immune to these pressures because it relies on imported crude paralysed
by the situation in the Strait of Hormuz. Nonetheless, the country retains
important buffers, including domestic refining capacity, gas and coal supply
for power generation and full self-sufficiency in fertiliser, which help
contain the second-order risks and broader economic impact.

Equity markets reflected this more complex picture. April saw a recovery in
headline indices, but performance was far from broad-based. Gains were heavily
concentrated in a handful of large conglomerates, most notably Vingroup, while
much of the market remained relatively flat. This divergence highlights an
important feature of the current market environment: sentiment-driven moves in
a small number of stocks can distort index performance in the short term. For
VNH, April delivered a positive return, with NAV per share increasing by 1.7%.
However, the Fund underperformed the broader index, which rose more sharply
due to its concentration in those same large-cap names that we do not hold
because of fundamental grounds. The big reason is our lack of exposure to VIC
- where valuation, conglomerate structure and execution timelines remain
difficult to assess. More broadly, the Fund continues to lean towards
businesses where earnings are clearer and balance sheets stronger. Over time,
that has meant a gradual increase in exposure to larger-cap names, which now
make up roughly three-quarters of the portfolio. This is not a shift in
philosophy so much as an adaption of the current environment. Liquidity,
resilience and the ability to absorb external shocks are increasingly at a
premium, particularly as Vietnam approaches its FTSE upgrade later this year.
Underneath the market moves, earnings momentum remains encouraging. Portfolio
companies continue to deliver strong growth, with many reporting double-digit
or higher earnings expansion in Q12026. Importantly, this underlying
performance is not yet fully reflected in valuations, leaving the market
attractively positioned on a forward-looking basis. Away from the numbers,
April also offered a moment of reflection. Vietnam marked the 51st anniversary
of reunification - a quieter milestone than last year's round number but
nonetheless telling of how far the country has come.

As we move into May and look ahead to VNH's 20th anniversary in June, there is
a strong sense that the market is entering a more mature phase. Growth remains
strong and opportunities are still abundant, but there is no longer a straight
line. In that sense, the "heat" in markets is not just a reflection of
volatility - it is a test of discipline. And for long-term investors, that is
often where the real value is created.

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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