Monthly Investor Report

RNS Number : 2228I

VietNam Holding Limited

07 December 2015

 

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

Monthly Investor Report

A report detailing the activities of the Company for the month of November 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 had a poor month, with the VNAS off 4.2% on the month to 565.7, with a fragile dong adding another circa 1% to the erosion in dollar terms. Locals mostly talked about over-stretched margin loan totals (USD1bn or so - small beer really) being to blame, but to us this does not explain anything. Rather, we would instead point to two more fundamental explanations for recent weakness.

First, Vietnam is - at least near-term - disappointing on its delivery of higher foreign investment limits: the grand announcement is now months old, the key proclaimed finalization date for a sector-by-sector list of limits was missed twice (September then October), and the SCIC's plans to get out of ten leading stocks don't yet seem to be much more than pie in the sky.

Second, an ad-hoc data point that came out on SOE indebtedness rather stuck in the craw: NPLs in that sector up 19% YoY, stated as a 4.6% NPL rate - which by government-reported standards for NPLs is high, meaning the true figure is of course much higher.

VNH Insights

VNH has tended to overcome these difficulties by being more focused than most on the Vietnamese mid-cap space (micro caps, globally speaking). Thus, our NAV per share lost 1.6% in November to USD2.186, another clear outperformance of the major Vietnamese indices.

Vietnam remains in a phase of solid 6-7% annual economic growth, largely unaffected by slowdowns elsewhere. Foreign direct investment inflows are headed for USD14-15bn this year, a multi-year high as the country's attractiveness is further burnished by the recent signing of the Trans-Pacific Partnership.        

For more information please contact:

VietNam Holding Asset Management Limited	Tel: [phone]
Investor Relations Gyentsen Zatul [e-mail] www.vietnamholding.com
Smith & Williamson Corporate Finance Limited Nominated Adviser	Tel: [phone]
Azhic Basirov / Ben Jeynes
Winterflood Investment Trusts Broker	Tel: [phone]
Joe Winkley / Neil Langford
Buchanan Communications Financial Public Relations	Tel: [phone]
Charles Ryland / Vicky Watkins

 

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