Vietnam Enterprise Investments Ltd on Thursday announced that a steadily growing Vietnamese economy contributed to its improvement in net asset value.
The investor in listed equities in Vietnam said net asset value per share rose 6.0% to $9.19 as at June 30 from $8.67 at December 31.
Chair Sarah Arkle noted robust consumer spending and resilient foreign direct investment inflows, but cautioned: ‘It has been a challenging time for investors in Vietnam and emerging markets over the last few years as investors’ focus on a narrow selection of US tech stocks, coupled with political worries in China and elsewhere has resulted in foreign selling and underperformance of the stock markets. Geopolitical risks still remain and Vietnam’s increasing dependence on the global supply chain and its large trade surplus with US make it vulnerable to any global disruption or any potential protectionism resulting from a Trump victory in US elections.’
The company highlighted its performance was boosted by a recovering economic environment, supported by policies from the Vietnamese government aimed at fostering growth.
However, it noted: ‘Public spending and progress in infrastructure projects have been less impressive this year as corruption allegations resulted in some senior government personal changes, including the chairman of the National Assembly and president of Vietnam. These changes have meant that there have been delays in decision-making at the municipal level.’
Lead Portfolio Manager Le Anh Tuan said: ‘Looking ahead, we remain confident that 2024 will be a year of growth and recovery. With GDP for the first half of 2024 coming in strongly at 6.4%, we believe macroeconomic headwinds are unlikely to derail Vietnam’s current growth path.’
Vietnam Enterprise shares were 1.1% higher at 574.00 pence each on Thursday morning in London.
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