Monthly Investor Report

RNS Number : 1046P

VietNam Holding Limited

14 November 2016

 

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

Monthly Investor Report

A report detailing the activities of the Company for the month of October 2016 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

Government budget stress remains a theme of note in Vietnam. The respected newspaper Tuoi Tre reported on the central government's decision to "shake down" key cities for money. Thus, the percentage of revenues the cities are allowed to keep falls as follows: Hanoi from 42% to 28%, Ho Chi Minh City from 23% to 18%, Danang from 85% to 68%, and Binh Duong from 40% to 36%.

The National Assembly has thrown in the towel on its self-imposed limit of government debt to GDP of 50%, raising it this month to 55% - no real choice, given that 50% has now been breached. Another above 5% fiscal deficit is on the cards for 2016. The current course, if maintained, would see public debt ratios continuing to increase.

VNH Insights

The Vietnamese stock market paused for breath in October, experiencing resistance as the widely watched VN-Index neared the 700 level. VNH's NAV per share was 5.4% down in the month, to USD 2.774, while the free-float-weighted Vietnam All Share Index that we use as a reference yardstick was 3.3% down, to 649.2.

It is interesting to see that Habeco's market share - in the high teens - has been on a clearly falling trend - this prompts the thought of there being in many cases an additional spur to rapid divestment: there are many wasting assets and time is short. This might not yet be as obvious with big beer brother Sabeco in the south, but even here we smell the same theme.

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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