VietNam Holding Limited ("VNH" or the
"Company")
Monthly Investor Report
A report detailing the activities of
the Company for the month of February 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: The Sky's the
limit
Vietnam's trade surplus reached
another new high in February and its US$265 billion stock market
rallied for a fourth consecutive month. The resilient rebound in
exports was once again led by electronics, while sustained growth
in retail sales was driven mainly by hospitality and tourism amid
increased travel during the festive Tet season. The country's PMI
also expanded for a second month running, despite China's slowdown
causing some ripple effects in the region. Post-Tet investor
confidence remains high. In the opening session of Giap Thin Lunar
New Year, the VN-Index officially surpassed the 1,200-point mark,
paving the way for a more prosperous year for Vietnam's stock
market. In February, the bullish sentiment started in the banking
sector, which continues to maintain healthy liquidity, then spilled
over into other sectors - all together pushing Vietnam's indices to
their highest level since May 2022. Liquidity hovered around US$1bn
from mid-February, resulting in a whole month average of US$758m, a
month-on-month rise of +23%.
Recent media reports have touted
Vietnam's stock market a 'positive growth' market as it continues
to outperform neighbouring countries. Vietnam's consensus 2024 GDP
growth forecast of 6% is the highest in Southeast Asia thanks
largely to ongoing policy developments. The government continues
its effort in directing ministries, sectors, and municipalities to
focus on sustainable growth, for example, by creating favourable
conditions for businesses, spurring on a more open, transparent
market, and making improvements to HOSE. Improvements to address
the 'pre-funding' of brokerage accounts should allow Vietnam to be
upgraded to a FTSE Russell Secondary Emerging Market by
2025.
VNH's portfolio remains
well-positioned for such accelerated growth, with its NAV up +7.8%
in February due to our overweight in outperforming sectors,
particularly banks, telecoms, retail, and industrials. The Fund has
outperformed for 1, 3, 5 and 10 years.
VNH is also monitoring Vietnam's
green initiatives, including how it enhances its cooperation on
renewable energy development with other countries and foreign
businesses following the approval of the government's Power
Development Plan VIII (PDP8) last year. For instance, at the end of
February it formerly upgraded its already well-established trade
pact with Australia with more sustainability provisions. Vietnam's
green economy has significant growth potential due to its growing
middle class, business landscape, and natural resources, and the
two countries' national goals align with each other, with Vietnam
aiming for net zero emissions by 2050 and Australia reducing its
reliance on coal and gas exports. As part of this agreement, the
Australian government pledged funding to help Vietnam reach its
climate goals, with an A$105m package toward clean energy adoption
and infrastructure and A$94.5m dedicated for climate change
adaptation in the Mekong Delta. With foreign direct investment
(FDI) also rising sharply in Vietnam - registered FDI jumped 38.6%
year-on-year in February and dispersed FDI reached its highest
level in five years - we expect to see further sustainable
financing for ensuring the country achieves its energy transition
and meets its climate pledges.
We are hosting an online investor
webinar on March 26th at 10:00 UK time.
Join here.
For more information please
contact:
Dynam Capital
Limited
Craig Martin
Tel: +84
28 3827 7590
info@dynamcapital.com
|www.dynamcapital.com
www.vietnamholding.com
Cavendish Capital Markets
Limited
Corporate Broker and Financial
Advisor
Tel: +44 20 7220
0500