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

Monthly Investor Report

A report detailing the activities of the Company for the month of June 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: New Era of Growth

Vietnam enjoyed accelerated growth during the second quarter of 2024 (2Q2024) with sustainable recovery across sectors driving GDP up by 6.9%, the second highest second quarter surge since 2019. In fact, June proved how the country's economic growth has been bolstered by resilient rebounds of exports in key products - not least in computers and electronics, up 28.6% year-on-year (YoY) - across all major markets.

GDP growth for the first half of the year (1H2024) was +6.4% YoY thanks to sustained industrial production, effective inflation control measures, and ever-increasing foreign investment. Although the industrial production index showed slower growth in the first quarter of 2024 compared to pre-pandemic levels, efforts to boost manufacturing activities have only intensified throughout 1H2024 and we saw Vietnam's PMI climb to a near record high in June. The Vietnamese government and local authorities have been actively supporting enterprises by facilitating access to new raw material sources and markets, as well as implementing incentive policies for businesses facing production and export challenges amidst the many global economic uncertainties today.

As anticipated, foreign direct investment (FDI) disbursement in Vietnam continued to flourish in June, reaching US$10.8bn for 1H2024, up +8.2% YoY, the highest rise for the first half of a year since 2012. Furthermore, disbursed FDI is forecast to increase 10% per annum throughout 2024 to 2026 due to large registrations recorded in 2023. Vietnam remains in an increasingly attractive position in terms of location, its educated workforce and growing middle class, plus the fact that multinational companies continue to diversify supply chains from China. Recent upgrades of diplomatic ties between Vietnam and the US, Japan, and Australia, are also strengthening its role in global trade.

Vietnam continued to reap healthy retail sales in June, up +9.1% from May. This stems mainly from hospitality, food services and tourism, with international arrivals jumping a massive +58.4% YoY in 1H2024, +4.1% above the pre-pandemic level. Indeed, Vietnam's wider consumer services sector has been crucial to driving growth this year, contributing 43.4% of GDP in June, and thus reflecting a broad-based recovery in domestic consumption and services. Increased public investment, up 4.8% for 1H2024, has played another instrumental part in the country's growth story by enhancing connectivity and supporting manufacturing activities. According to the Ministry of Finance, there was a fiscal surplus of US$9.5bn in the first five months of 2024 (5M2024), further enabling the government to do more to bolster economic recovery. We expect credit growth in 2024 to be around 13-15% and the government to continue easing monetary and fiscal policy throughout the second half of the year.

Vietnam's stock market showed an overall solid performance in 2Q2024, with significant gains across various sectors, particularly in technology which has been dominated by digitalisation and AI developments. The VN-Index was up 10.2% YoY in 2Q2024, outperforming the MSCI EM Index and neighbouring markets and still offering attractive valuation for long-term growth versus peers. In June, it briefly crossed 1,300 points for the first time since 2022, even though market indices went sideways as most local investors were waiting for Q2 business results. Investor enthusiasm in technology continues apace, not least after a NVIDIA delegation visited the country and announced various collaborations with companies, such as FPT, VNH's top holding. Although the portfolio also went sideways in June given local investors' sentiment, FPT performed exceptionally well as investors were willing to pay a premium for Vietnam's fast-growing IT sector and how it facilitates the world's rapid green and digital transformations.

For more information please contact:

Dynam Capital Limited                  

Craig Martin                                                                                       Tel: +84 28 3827 7590

info@dynamcapital.com |www.dynamcapital.com

www.vietnamholding.com

Cavendish Capital Markets Limited

Corporate Broker and Financial Advisor                                          Tel: +44 20 7220 0500