Monthly Investor Report

RNS Number : 4923Q

VietNam Holding Limited

19 February 2019

 

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

Monthly Investor Report

A report detailing the activities of the Company for the month January 2019 has been issued by Dynam Capital 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's macro story remains strong, but this is not currently reflected in the performance of the mid-cap equities the Fund holds. Retail sales in Vietnam rose by 12.2% year-on-year in January, and the annual inflation rate in Vietnam slowed to 2.56% in January 2019, the lowest since July 2017.

The ongoing trade tussles between the US and China continue to bear down on regional economies, however the consensus view appears to be that Vietnam will be a rare winner with manufacturers investing in production capabilities to diversify risks. A broader manufacturing-for-export base will help Vietnam as it is quite concentrated around South Korea. Over the last two decades South Korea has emerged as the largest foreign investor in Vietnam, and Samsung's businesses alone are estimated to account for a staggering 25% of GDP.

This over-reliance may have impacted Vietnam negatively in January when lower sales of phones and accessories contributed significantly to a 1.3% decline in exports, and a trade deficit of USD800 million in the month, compared to a USD180 million surplus in the same month a year earlier.

The Fund's NAV/Share declined by 1.7% in January, underperforming all the indices. We see brighter prospects for the Fund's portfolio in the months to come: we remain committed to a mid-market strategy and believe that the companies in our portfolio have strong growth prospects.

This Lunar New Year heralds the year of the Pig, an animal representing good fortune and wealth. We wish this for all investors.

For more information please contact:

Dynam Capital Limited                  

Craig Martin                                                                                        Tel: [phone]

[e-mail] |www.dynamcapital.com

www.vietnamholding.com

finnCap

Nominated Adviser and Corporate Broker                                          Tel: [phone]      

William Marle / Giles Rolls

 

END

 

 

DOCSFFFSUFUSEIE