VietNam Holding Limited ("VNH" or the
"Company")
Monthly Investor Report
A report detailing the activities of
the Company for the month of May 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: April Showers,
May Flowers
After a stormy April, Vietnam's
stock market made a reasonable recovery in May, though performance
varied across sectors and volatility remains a given due largely to
ongoing global risks and uncertainties. Up +4.9% for the month, VNH
outperformed the VNAS again mainly because of its holdings in
Telecoms, Industrials and Retail. Vietnam's retail sector continued
to enjoy sustainable growth in May, driven primarily by buoyant
hospitality and tourism. Tourism revenue, from both domestic and
international travelers, surged 45.1% year-on-year (YoY); we expect
the rise in international arrivals will continue to drive retail
growth.
As anticipated, foreign direct
investment (FDI) disbursement also continued to climb. FDI
disbursement for the first five months of 2024 (5M) was up +7.8%
YoY, reaching the highest levels since 2012. Furthermore, disbursed
FDI is forecast to increase 10% per annum throughout 2024 to 2026
due to large registrations recorded in 2023. Vietnam is in a unique
position in terms of location, its educated workforce and growing
middle class, plus the fact that multinational companies continue
to diversify supply chains from China. Recent upgrades of
diplomatic ties between Vietnam and the US, Japan, and Australia,
are also strengthening its role in global trade.
In 5M 2024, Vietnam's exports and
imports increased by 15.2% YoY and 18.2% YoY, respectively,
resulting in a trade surplus of USD8.0bn. As around 94% of the
country's imports are materials for production, impressive import
growth in May 2024 painted an encouraging sign for exports. In
addition, Vietnam's latest PMI report showed solid growth of new
orders and signs of sustained recovery in global demand, which
should support exports in the coming months. According to the
Ministry of Finance, there was also a fiscal surplus of USD9.5bn in
5M 2024, further enabling the government to do more to bolster
economic recovery.
On the political front, Vietnam's
parliament elected police minister To Lam as the state president.
His election followed the appointment of Vietnam's National
Assembly's new chairman, former deputy Tran Thanh Man, also
considered as a step forward after two months of political
turbulence with the departure of three of Vietnam's top five
leaders over unspecified wrongdoings earlier in the year. Mr. Lam
vowed to "resolutely and persistently" continue to fight against
corruption and ensure transparency.
It was a busy month for the
country's environmental, social and governance (ESG) agenda too.
VNH spoke at and sponsored the second annual Vietnam ESG Investor
Conference, which focused on building resilient supply chains
through strategic, innovative and inclusive partnerships. This is
important to VNH in terms of mapping its investment criteria and
stewardship to the UN's 17 Sustainable Development Goals, not least
number 4 on quality education and number 17 on partnerships for the
goals. Foreign businesses are increasingly requiring more evidence
of ESG practices by Vietnamese companies and through its ESG
Initiative, Vietnam's government has been prioritizing the
implementation of its Green Growth Strategy for 2021 to 2030. The
annual Vietnam Business Forum, which also took place in May, saw
Prime Minister Pham Minh Chinh reiterating that sustainable
development is key to the country's economic restructuring and
transformation.
In May, VNH's portfolio management
team was awarded the coveted triple-A rating by CityWire for being
the top performer in Vietnam and commended for carefully
constructing a market-leading portfolio.
Lastly, we are pleased to announce
that VNH has been promoted to the FTSE Small Cap Index and will
therefore be a FTSE All Share constituent from Monday 24
June.
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