Monthly Investor Report

VietNam Holding Limited

24 December 2024

 

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

Monthly Investor Report

A report detailing the activities of the Company for the month of November 2024 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 and a summary of the report is included below.

Manager Commentary: Economic momentum and market moves

Vietnam's economic and stock market continued to make strides in November. Key highlights include a record high trade surplus of USD 24.3bn for the first 11 months of 2024, robust export and import growth, and resilient export performance across major markets.  Exports grew by 14.4% year-on-year (YoY), underlining Vietnam's ongoing sustainable recovery in global demand. Key export products such as computers, electronic products, phones, machinery, and textiles showed significant growth. This was complemented by exports to major markets like China, the US, Korea, Japan, and the EU recording substantial increases for the month. Imports grew by 16.4% YoY, further supporting economic activity.

Public investment also accelerated in November, achieving 73.5% of the annual target by November, with USD 22.9bn disbursed, reflecting a YoY rise of 2.4%.  Retail sales remained healthy thanks mainly to growth in hospitality, food services and tourism. While retail sales have performed strongly throughout 2024, the pace remains slower than before Covid.

November was also notably highlighted by the government's big plans to further fuel economic growth over the next five years, and this includes the approval of a USD 67bn high-speed railway project. Infrastructure is the backbone of the economy and society, and as we discussed in a recent article, 'Planes, trains, and automobiles', this new fast line linking Hanoi and Ho Chi Minh City in just five hours will be a game-changer for both cheaper and environmentally-friendly connectivity in promoting rapid economic growth.

The real high point is the attractive valuations for long-term growth that Vietnam's equity market continued to offer, despite foreign investors net selling. VNH's NAV per share saw a slight decline of 2.4% in November, underperforming the VNASTR index, but as awards season continues, we were proudly named as the winner in another magazine, accepting the UK Investor Magazine's Award for Best Emerging Markets Trust.

Additionally, the approval of the amended Securities Law by the National Assembly on November 29 marked a significant step forward for Vietnam's stock market, laying the groundwork for its long-term development and aspirations of achieving emerging market status.

The revised law introduces several pivotal provisions, including strengthening the responsibilities of issuers, advisory units, and auditors in the issuance licensing process. It is expected to enhance the responsibilities of market participants, improve transparency, and boost regulatory monitoring capabilities. These measures will not only strengthen investor confidence but also provide a robust foundation for the Ministry of Finance and the State Securities Commission to refine the legal framework and operational systems necessary for a market upgrade over 2025 to 2026.

Looking ahead to 2025, forecasts suggest continued economic growth of 6-8% and stable inflation. The World Bank projects a 6.5% GDP increase, while the International Monetary Fund anticipates a 6.1% rise, supported by strong external demand and resilient foreign direct investment. Global economic uncertainties and trade policy shifts, particularly given President-elect Trump's plans, will still pose challenges. Vietnam's Prime Minister has urged the U.S. to lift certain high-tech export restrictions, emphasising the importance of bilateral relations.

Overall, while Vietnam's economy and stock market have shown extraordinary resilience and growth in 2024, maintaining this momentum into 2025 will require navigating both domestic reforms and international economic dynamics. VNH portfolio is well-positioned for the year ahead, focusing on domestic consumption, urbanisation, and industrialisation, with top holdings in sectors like banking, retail, and telecommunications. Wishing you all happy holidays!

For more information please contact:

Dynam Capital Limited                  

Craig Martin                                                                                       Tel: [phone]

[e-mail] |www.dynamcapital.com

www.vietnamholding.com

Cavendish Capital Markets Limited

Corporate Broker and Financial Advisor                                         Tel: [phone]      

 

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