VietNam Holding Limited ("VNH" or the "Company")
Monthly Investor Report
A report detailing the activities of the Company for the month of February 2024 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 and a summary of the report is included below.
Manager Commentary: The Sky's the limit
Vietnam's trade surplus reached another new high in February and its US$265 billion stock market rallied for a fourth consecutive month. The resilient rebound in exports was once again led by electronics, while sustained growth in retail sales was driven mainly by hospitality and tourism amid increased travel during the festive Tet season. The country's PMI also expanded for a second month running, despite China's slowdown causing some ripple effects in the region. Post-Tet investor confidence remains high. In the opening session of Giap Thin Lunar New Year, the VN-Index officially surpassed the 1,200-point mark, paving the way for a more prosperous year for Vietnam's stock market. In February, the bullish sentiment started in the banking sector, which continues to maintain healthy liquidity, then spilled over into other sectors - all together pushing Vietnam's indices to their highest level since May 2022. Liquidity hovered around US$1bn from mid-February, resulting in a whole month average of US$758m, a month-on-month rise of +23%.
Recent media reports have touted Vietnam's stock market a 'positive growth' market as it continues to outperform neighbouring countries. Vietnam's consensus 2024 GDP growth forecast of 6% is the highest in Southeast Asia thanks largely to ongoing policy developments. The government continues its effort in directing ministries, sectors, and municipalities to focus on sustainable growth, for example, by creating favourable conditions for businesses, spurring on a more open, transparent market, and making improvements to HOSE. Improvements to address the 'pre-funding' of brokerage accounts should allow Vietnam to be upgraded to a FTSE Russell Secondary Emerging Market by 2025.
VNH's portfolio remains well-positioned for such accelerated growth, with its NAV up +7.8% in February due to our overweight in outperforming sectors, particularly banks, telecoms, retail, and industrials. The Fund has outperformed for 1, 3, 5 and 10 years.
VNH is also monitoring Vietnam's green initiatives, including how it enhances its cooperation on renewable energy development with other countries and foreign businesses following the approval of the government's Power Development Plan VIII (PDP8) last year. For instance, at the end of February it formerly upgraded its already well-established trade pact with Australia with more sustainability provisions. Vietnam's green economy has significant growth potential due to its growing middle class, business landscape, and natural resources, and the two countries' national goals align with each other, with Vietnam aiming for net zero emissions by 2050 and Australia reducing its reliance on coal and gas exports. As part of this agreement, the Australian government pledged funding to help Vietnam reach its climate goals, with an A$105m package toward clean energy adoption and infrastructure and A$94.5m dedicated for climate change adaptation in the Mekong Delta. With foreign direct investment (FDI) also rising sharply in Vietnam - registered FDI jumped 38.6% year-on-year in February and dispersed FDI reached its highest level in five years - we expect to see further sustainable financing for ensuring the country achieves its energy transition and meets its climate pledges.
We are hosting an online investor webinar on March 26th at 10:00 UK time. Join here.
For more information please contact:
Dynam Capital Limited
Craig Martin Tel: +84 28 3827 7590
info@dynamcapital.com |www.dynamcapital.com
Cavendish Capital Markets Limited
Corporate Broker and Financial Advisor Tel: +44 20 7220 0500
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