Monthly Investor Report

RNS Number : 0532O

VietNam Holding Limited

16 September 2013

 



VietNam Holding Limited (the "Company")

Investor Report

A report detailing the activities of the Company for the month of August 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

With external debt levels in emerging markets gaining attention recently, it is useful to review Vietnam's current position.  Between 2008 and 2012, Vietnam's aggregate external debt doubled, from US$32.1bn to US$64.2bn, and will probably creep up further to close to US$70bn by end-2013, according to HSBC.  As a consequence, its external debt as a proportion of total GDP has also risen, but less dramatically, from 32.4% in 2008 to 41.2% last year, and probably 40% in 2013. Of this, short-term external debt, as a percentage of international reserves has risen from 17.7% in 2008 to 34.7% at present, although this figure will likely drop below 25% in 2013.  Vietnam's private sector has relatively modest external debts of around US$17.1bn (equivalent to 11% of GDP), up from a mere US$6.6bn in 2008.  Most of the external debt is sovereign, and a large part is in the form of soft loans, borrowed from various multilateral development agencies at heavily discounted rates of interest.  A few of the larger SOEs have been able to access foreign loans, but most of their credit is sourced domestically.

VNH Insights

Vietnam's equity markets were down in August, with little good news to shake investors out of their summer stupor.  The VNI ended the month down 3.89% at 472.70, taking the YTD performance to +14.25%. VNH's NAV per share decreased by a lesser 2.02% last month but the YTD performance was still at a comfortable 28.71% at the end of the month.

With the final exercise date of the VNH Warrants approaching rapidly (25 September 2013) it is worth taking a look at the impact which the creation of the new shares could have for our shareholders. Assuming that all the remaining 17.9 million VNH warrants are exercised on the final exercise date, the diluted NAV per share would have been US$ 1.570 as at 30 August 2013. This would have resulted in a share price discount of 17.68% as opposed to the 23.93% discount to the undiluted NAV.

After peaking at a 5-year high of USD 1.34 in mid-August the VNH share price closed the month down 0.5% at USD 1.29. As we are getting closer to the expiration of the VNH Warrants there was some increased selling pressure on the VNH Shares. Thus, VNH has continued to buy back its own shares to be held in treasury. Last month an additional 350,000 shares were repurchased.

VietNam Holding Asset Management Limited
Gyentsen Zatul	Telephone: [phone]
- Investor Relations

 

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