Monthly Investor Report

RNS Number : 2923E

VietNam Holding Limited

08 May 2013

 



VietNam Holding Limited (the "Company")

Investor Report

A report detailing the activities of the Company for the month of April 2013 has been issued by VietNam Holding Asset Management Limited, the investment manager of the Company. Electronic copies of the report have been made available to shareholders on the Company's website at http://www.vietnamholding.com/latest-publications.aspx and a summary of the report is included below.

Investor Report Summary

Vietnam News:

Vietnam's equity markets went into consolidation mode during April, after the rallies of recent months, with domestic retail investors taking their cues from some foreign institutional selling.  The VNI index decreased by 3.4% ending April at 474.5, taking the YTD gains to 15.7%. In Hanoi, the HNX also declined by roughly 4% to end April at 58.4, a drop of 1.3% YTD.

FDI inflow pledges of US$8.22bn have been approved in the first four months of 2013, which is over half the target figure for the full year.  Roughly 60% of these pledges are for new projects, and 40% are for the expansion of existing projects.  In terms of actual FDI disbursements in the first four months of the year, the figure of US$3.75bn has been cited.

Inflation was benign at just 0.01% MoM in April, taking the YoY figure to 6.02%. But there was no lowering of interest rates, despite continued weakness in credit growth.  Government bond yields hit a new low of 7.73% (for the benchmark three-year paper) in April; the lowest level seen since late 2007.  The VND continues to hold steady against major global currencies, and was trading at 20,840 to the USD at end-April. 

Export performance also remains strong, with substantial YoY growth seen in mobile phones and components, garments and footwear, electronics and crude oil.  Overall, exports in the first four months of 2013 are 20% greater than the same period last year.  The foreign invested sector is in the driving seat, now accounting for about 65% of all the country's exports.  This sector achieved a positive net trade surplus of US$3.8bn in the first third of the year, while domestic firms continue to be net importers overall.

VNH Insights:

During the month of April the VNH NAV per share retreated by 2.3% to USD 1.524 which brought the year-to-date performance to +15.5%.

The overall market correction in Vietnam after an impressive start into 2013 can be mostly attributed to selling pressure from ETFs unloading index heavy weights. This underlines our thesis of the dichotomy between large and small/mid caps in terms of market share and valuations. The ETFs' focus on relatively few and liquid shares can substantially increase the volatility of the large caps in an already volatile market.

VNH's focus on solid medium sized enterprises such as Hung Vuong Corporation (+5.4%), Thien Long Group (+3.6%) or Bin Minh Plastic (+1.5%) has again lead to an outperformance of the market as the share prices of these companies among our top 10 positions closed the month in positive territory. It is also worth mentioning in this context that Vinamilk (VNM), one VNH's few real large cap investments managed to gain 6.9% in April. Even though VNM is the second largest company in Vietnam in terms of market capitalization it is usually not covered in ETF portfolios due to its foreign room being constantly full.

For more information please contact:
VietNam Holding Asset Management Limited
Gyentsen Zatul	Telephone: [phone]
- Investor Relations
Oriel Securities Limited (Nominated Adviser and Broker)
Gareth Price	Telephone: [phone]

 

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