REG - VietNam Holding Ltd - Monthly Investor Report

VietNam HoldingAnnouncement

19/02/2025 07:15

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250219:nRSS6691Xa&default-theme=true

RNS Number : 6691X  VietNam Holding Limited  19 February 2025

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

Monthly Investor Report

A report detailing the activities of the Company for the month of January 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/a33oivig/vnh-investor-report-january-2025.pdf)
and a summary of the report is included below.

Manager Commentary: Fewer snakes, more ladders

January was a sideways month for Vietnam's economy and stock market, with
fewer working days during the Lunar New Year (Tet holiday) and global
geopolitical and tariff twists continuing to rattle supply chains around the
world. However, relative to other countries, Vietnam managed to navigate the
unprecedented uncertainties and maintain a positive GDP growth outlook for
2025, with the National Assembly increasing its target for the year to 8%
based on the sustainable momentum.

Indeed, on the back of 2024's better-than-expected 7.09% growth rate, the
Vietnamese government continues to push ahead on policies aimed at attracting
investment, increasing domestic consumption and stimulating economic
expansion, as part of a 'National Rising' campaign. For example, on public
infrastructure investment, its planned 400km Lao Cai-Hanoi-Hai Phong US$8.4 bn
railway project, which will connect Vietnam's Chinese border to the growing
Lach Huyen International Port in Hai Phong, is bound to boost trade and
logistics and lead to further foreign capital. Construction is meant to run
from 2026 to 2030, resulting in 90,000 new jobs while also traversing a region
that is home to 20% of Vietnam's population and 25% of its industrial bases.
In preparing for an annual growth rate beyond 10% for 2026 onwards, the
government also showed that it remains committed to tax breaks and financial
support for high-tech industries and renewable energy projects that can help
position Vietnam as a regional investment hub. For instance, in January,
Vietnam's revised Public Investment Law came into effect, introducing
significant changes to enhance the efficiency of public investment management.
The reforms were made to overcome existing bottlenecks, foster
decentralisation, and streamline public investment processes, thereby
contributing to Vietnam's long-term economic development ambitions.
Additionally, efforts to upgrade Vietnam's stock market classification to
emerging market status continued in January through regulatory adjustments to
enhance transparency.

As for Vietnam's stock market, it mirrored the broader global economic
uncertainties that intensified in January, with cautious domestic investor
sentiment and broad-based selling of frontier and emerging market stocks by
foreign investors. In terms of sectors, banking and retail held steady, buoyed
by the government's stimulus efforts, while manufacturing stocks faced foreign
sell-offs due to weaker global demand stemming from potential trade war
implications. The banking sector's strong earnings prospects, attractive
valuations, and favourable credit growth have contributed to their resilience,
despite the broader market volatility.  VNH's net asset value was up +1.4%
thanks to the outperformance of retail, banks and telecoms.

Despite the near-term headwinds, we believe that long-term optimism remains as
Vietnam's economic fundamentals and growth 'ladders' have the potential to
keep investors engaged. January underscored the importance of adaptability in
the evolving global landscape and, as the Year of the Snake unfolds, Vietnam
has several opportunities to bank on, not least its booming tourism industry,
which made a roaring start to 2025, having set a record with nearly 2.1
million international visitors. This figure not only surpassed pre-pandemic
levels but also marked a 36.9% increase compared to January 2024. China
reclaimed its position as the leading source of international visitors, but
the European market also emerged as a significant contributor, bolstered by
Vietnam's unilateral visa exemption policy. The surge in tourists naturally
boosted Vietnam's economy, with some provinces reporting tourism revenue
increases of 40%.

Tourism, strengthening domestic household spending and a growing middle class
can partially offset potential weakening in exports as global trade
disruptions evolve, while at the same time Vietnam's active participation in
regional trade agreements opens doors for new investment avenues and market
expansion throughout the year.

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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DOCSFMSMUEISEEE