Monthly Investor Report

RNS Number : 9947B

VietNam Holding Limited

12 October 2015

 



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

Monthly Investor Report

A report detailing the activities of the Company for the month of September 2015 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/publications/investor-reports and a summary of the report is included below.

Investor Report Summary

Vietnam News

Vietnam's markets held up well in September, with the VNAS down only 0.3% month-on-month, versus falls of 3% for frontier markets, 5% for emerging markets, and 6% for world markets according to the MSCI indices. The global investment environment is at a remarkably uneasy juncture, but Vietnam's resilient calendar year-to-date performance - 1.2% down (VNAS) in local currency and 6% down in dollars, versus a 19% fall for MSCI Frontier - is bearing out Vietnam's relatively well-sheltered position amidst the commodity price-, China-, and US interest rate- driven global uncertainties.

Strong economic data in September has borne out this distinctiveness: third quarter GDP growth of 6.8%, above expectations and accelerating; retail sales growth and industrial production both running at +10% year-on-year; inflation running at nil (or 2.2% ex- food and energy); and credit growth of 10.8% year-to-date. Also note that this GDP performance has been achieved despite the trade deficit with China having risen in 2015 to date by 21% to USD 24bn.                 

VNH Insights

VietNam Holding's NAV per share rose 3.2% in the month to USD 2.054, driven by good gains in newly listed yarn producer STK which was bought pre-listing (+23.1%), ship and port operator VSC (+13.1%), mid-market residential property developers KDH and DXG (+10.8% and +12.0% respectively), plastic pipe maker BMP (+12.1%), and pen maker TLG (+9.1%). Performance drags included property developer PDR (-10.0%) and pharma group DHG (-5.7%). Calendar year-to-date, risers in the existing portfolio outnumber fallers by about two-to-one, making for a calendar year-to-date performance of the fund up just a shade by 0.5%.

Despite the challenging global environment, it is encouraging that Vietnam's growth outlook remains good (6.5-7% being widely forecast, best in Asia), inward FDI strong (+8% year-to-date at USD 9.7bn), and export growth resilient (+10% year-on-year, the best export growth in Asia). Foreign ownership limit changes and the Trans-Pacific Partnership trade agreement (the latter now initially signed) remain big events that are likely to cause sustained buoyancy for the Vietnamese market over the coming one to two years. Vietnam remains a good story, both for its low correlation to global storms and its durable structural growth outlook.

For more information please contact:

VietNam Holding Asset Management Limited	Tel: [phone]
Gyentsen Zatul - Investor Relations [e-mail] www.vietnamholding.com
Altium Capital Limited (Nominated Adviser)	Tel: [phone]
Tim Richardson
Winterflood Investment Trusts (Broker)	Tel: [phone]
Joe Winkley / Neil Langford
Buchanan Communications	Tel: [phone]
Charles Ryland / Vicky Watkins

 

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