Monthly Investor Report

RNS Number : 2320W

VietNam Holding Limited

17 August 2015

 



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

Monthly Investor Report

A report detailing the activities of the Company for the month of July 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 and a summary of the report is included below.

Investor Report Summary

Vietnam News

July was an exciting month for Vietnamese stocks, with the local-currency Vietnam All Share Index putting on a vigorous 4.1% to 599. Enthusiasm has emanated from three main sources. First, the coming foreign ownership limit (FOL) increases. These will likely take effect at various points from September onwards, with many companies being able to go "limitless". Second, high hopes for the recent Trans-Pacific Partnership (TPP) negotiating round in Hawaii, though post-month end news arrived that the talks have not yet reached a conclusion. Third, the continued strong near term economic prospects, supported by good recent data releases, such as credit growth (up 6.3% ytd by June), industrial production (up 9.6% yoy in 1H15), disbursed foreign direct investment (USD 7.4bn ytd through July, up 9% yoy), and real retail sales (up 8.3% yoy in 1H15). All of these indicators are running at multi-year highs.

VNH Insights

VNH's NAV per share rose 3.4% to USD 2.164 over the month, making a 5.1% gain for the calendar year to date. The good reasons for being positive on the market continue to exist, and recent market action has reflected this. The foreign limit increases are good in themselves, but also because they increase the chance of a market upgrade to emerging market status, from frontier, by MSCI. The TPP, if and when it happens, is great news for Vietnam's growth rates, but also for the imposed reform and modernisation it implies. Near term economic data is likely to continue accelerating; 7% GDP growth is looking more and more likely within 12 months.      

We are not worried about the trade deficit: it is of modest size and its drivers are largely concomitant to the economic acceleration. The fiscal deficit is of greater concern, although we note that difficulties in financing it are in themselves positive, in that, willy-nilly, they will force greater fiscal discipline over time. The idea of government borrowing from the central bank is a repulsive one and loud commentator disapproval will lead to a quick death for this wholly retrograde idea.

The FOL and TPP themes still have a ways to run and push the stock market sharply higher.

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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