REG - Vietnam Enterprise Vietnam Ent Inv-VEID - Annual Report and Notice of AGM

Vietnam Enterprise InvestmentsAnnouncement

28/04/2026 07:00

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RNS Number : 1855C  Vietnam Enterprise Investments Ltd  28 April 2026

COMPANY ANNOUNCEMENT

 

 

For Immediate Release
 
 
 28 April 2026

 

 

Vietnam Enterprise Investments Limited

("VEIL" or the "Company")

 

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

 

NOTICE OF 2026 ANNUAL GENERAL MEETING

 

The Company today announces its annual report and financial statements for the
year ended 31 December 2025 (the "2025 Annual Report").

 

The 2025 Annual Report includes the notice of the Company's 2026 Annual
General Meeting ("2026 AGM"), which will be held at 12:00pm (UK time) on 25
June 2026 at The Stationers' Hall, Ave Maria Lane, London EC4M 7DD, United
Kingdom.

 

The 2025 Annual Report has been filed with the Financial Conduct Authority by
uploading it to the National Storage Mechanism ("NSM") in accordance with UK
Listing Rule 6.4.1 and will shortly be available for inspection at:

 

https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism)

 

The 2025 Annual Report may also be accessed via the Company's website:

 

https://www.veil.uk/ (https://www.veil.uk/)

 

In accordance with Disclosure Guidance and Transparency Rule 6.3.5(1A), the
regulated information referred to in DTR 6.3.5 is available in unedited full
text within the 2025 Annual Report as uploaded to the NSM and on the Company's
website as noted above.

 

Highlights:

 

·      NAV total return of +24.5% in US$ (+15.9% in Sterling),
outperforming listed peers

·      Share price total return of +36.1% in US$ (+29.9% in Sterling),
reflecting a narrowing of the discount

·      Vietnam Index (VNI) rose 38.8% in US$, (+29.2% in Sterling), with
Vingroup alone contributing 19.5% of the gain

·      10-year NAV returns of 12.9% p.a. versus 8.9% p.a. for the MSCI
Emerging Markets Index (US$ total return)

·      A further £52.2mn of shares bought back in 2026 year-to-date at
28 April, in addition to £147.4mn returned via the 10% tender offer in
January 2026

·      First 10% tender at NAV less 3% completed in mid-January 2026

·      The Company ended the year with net cash of US$93mn (4.8% of NAV)

 

Charles Cade, Interim Chairman, VEIL, commented:

"Over the 10 years to the end of 2025, VEIL delivered NAV returns of 12.9% per
annum in US$, outperforming its listed peers. With a market cap of US$1.9bn,
VEIL remains the largest active investor in Vietnam and is well placed to
benefit from the country's domestic growth potential."

"The year started with considerable apprehension among investors about the
impact of US tariffs, but the Vietnam market rallied strongly from its lows in
April 2025, supported by strong economic growth and business-friendly
government policies. Foreign investors remained net sellers of Vietnamese
equities despite the strong performance of the market. Reflecting this, the
VNI continued to be driven by domestic retail investors which accounted for
approximately 85% of trading volumes.

"Whilst the Company's NAV performance lagged the VNI during 2025, it delivered
healthy returns in absolute terms, and outperformed its listed peers in both
NAV and share price returns. A key factor behind the strength of the VNI was
the exceptional performance of Vingroup, the conglomerate, which delivered
share price returns of 711% in US$ during 2025, making it the largest
constituent in the index at the year-end with a weighting of 15.7%. Vingroup
has been a challenge for active investors in Vietnamese equities as it has low
free-float and its valuation is now very high based on historic metrics.

Discount Management

"Following last year's AGM in June 2025, when shareholders voted against a
five-yearly discontinuation resolution, with more than 20 per cent were in
favour of the resolution, the Board committed to consult with relevant
shareholders. Encouragingly, a significant majority of shareholders consulted
were positive on the outlook for Vietnam and supportive of the Investment
Manager. However, there was a broad consensus that the discount had been too
wide.

"Based on this shareholder feedback, the Board announced proposals in
mid-December 2025 for a tender for up to 10% of the share capital at a price
equivalent to NAV less 3% and indicated its intention to hold two further 10%
tenders within the following 12 months. The proposals were supported by 99.68%
of shareholders and the first tender was successfully completed in mid-January
2026.

"Returning capital is just one side of the story in terms of the Company's
discount management strategy. Steps are also being taken to raise the profile
of the Company in an effort to increase demand for its shares.

Board Governance

"Following Sarah Arkle's departure as Chair in January 2026, the Board would
like to thank Sarah for her four years as a Non-Executive Director, and as
Chair from June 2024, supporting VEIL during a major period of growth for the
Company and Vietnam, and for her leading role in the shareholder consultation
following last year's discontinuation vote at the AGM

Outlook

"The Board believes that the investment case for Vietnam remains strong. The
country was one of the fastest growing global economies in 2025, with real GDP
growth of 8.0%, and it entered 2026 with strong underlying momentum. In the
near term, the war in the Gulf region creates headwinds for Vietnam as the
country is a significant net importer of energy. However, the core long-term
drivers of economic growth remain in place, with healthy foreign direct
investment, rising urbanisation and the emergence of the middle class
consumer. In addition, government policy is increasingly reform oriented,
accelerating displacement of State-Owned Enterprises by more efficient private
sector businesses.

"Vietnam's equity market appears attractively valued relative to both
historical levels and regional peers. The Portfolio Manager forecasts earnings
growth of 17.5% for the top 100 listed companies in 2026, implying a forward
P/E of approximately 11x as of 10 April 2026. In addition, Vietnam will be
upgraded by FTSE Russell from Frontier Market to Secondary Emerging Market
status in September 2026, which could help reverse the outflows of foreign
capital experienced in recent years.

"Investors in an early-stage equity market such as Vietnam will inevitably
face some volatile periods. However, the potential rewards over the long term
are illustrated by VEIL's performance over the 10 years to the end of 2025,
with NAV returns of 12.9% per annum versus 8.9% per annum for the MSCI
Emerging Markets Index".

 

Charles Cade, Interim Chair

Vietnam Enterprise Investments Limited

Portfolio Manager's Outlook

 

"Vietnam entered 2026 with strong underlying momentum. The macro framework
remains favourable, while policy is increasingly reform-oriented, and
implementation of the Government's 2026-2030 development plan should help
reinforce this direction. Resolution 68, together with Resolution 79, a
corollary initiative which focuses on improving the efficiency of SOEs and the
allocation of state capital, points to a more defined policy framework in
which private enterprise, infrastructure investment and more efficient capital
allocation are expected to play a larger role in driving growth.

 

"Broader reforms to streamline regulation and improve the business environment
reinforced the view that Vietnam is entering a more supportive phase for
investment and private enterprise. Our view is that well-capitalised domestic
champions will be key beneficiaries of a more supportive policy environment
and greater private-sector participation in large-scale development projects.

 

"The key near-term risks remain largely external. While the direct economic
impact on Vietnam remains limited at this stage, rising oil prices could place
pressure on inflation and complicate monetary policy. Nonetheless, growth is
increasingly supported by domestic demand and policy flexibility, which should
help mitigate broader effects. Within the portfolio, energy exposure,
particularly service providers linked to upstream investment, may provide a
partial offset. We also increased cash modestly in early March to manage
volatility while preserving capacity to deploy capital should new
opportunities emerge.

 

"We remain constructive on improving liquidity, a stronger IPO pipeline, and
Vietnam's expected FTSE Secondary Emerging Market upgrade, which would support
further market development.

 

"We remain positive on Vietnam's equity market. Our in-house forecasts
indicate earnings growth of 17.5% for the top 100 listed companies in 2026,
implying a forward P/E of approximately 11x as of 10 April 2026, which remains
attractive relative to both historical levels and regional peers".

 

Tuan Le, Lead Portfolio Manager

Vietnam Enterprise Investments Limited

 

 

Enquiries:

 

Vietnam Enterprise Investments Limited

Steven Mantle

+44 (0) 755 370 1237

stevenmantle@dragoncapital.com

 

Jefferies International Limited

Stuart
Klein

+44 (0) 20 7029 8703

stuart.klein@jefferies.com (mailto:stuart.klein@jefferies.com)

 

h2Radnor

Iain Daly

+44 (0) 20 3897 1830

idaly@h2radnor.com

 

Montfort Communications

Gay Collins, Alex Everett

+44 (0) 7798 626282

veil@montfort.london (mailto:veil@montfort.london)

 

LEI: 213800SYT3T4AGEVW864

 

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