(Alliance News) - Vietnam Enterprise Investments Ltd on Wednesday reported a rise in net asset value for January, as the company noted an improvement in sentiment globally and in Vietnam.
The closed-end fund primarily investing in Vietnamese-listed equity said NAV as at January 31 rose 11% to USD8.70 per share from USD7.85 at December 31.
Looking ahead, the company noted challenges for 2023 but said it was optimistic on retail investor sentiment.
"2023 may well be a year of selective opportunities where we see greater divergence between quality stocks and those that are struggling in a tighter economic climate. While domestic and global risks still remain, loosening Government policies can minimise their impact. This, encouragingly, could create opportunities in a more navigable domestic macro environment," it said.
Portfolio Manager Dien Vu said: "VEIL started the year with a solid 10.8% increase, albeit 0.4% behind its reference index, the VNI. This double-digit gain was despite Vietnam's President resigning from his position midway through the month, just two days before the start of the Tet (Lunar New year) holiday. This resignation took responsibility for the shortcomings of two deputy prime ministers, which demonstrates in the investment manager's view that accountability is being taken at all levels of government. Furthermore, we observe that obstructions in public infrastructure investment appear to have been cleared, and the tightening of capital markets (including the corporate bond and property markets) has been easing."
Vietnam Enterprise shares were 0.5% higher at 582.09 pence each in London on Wednesday morning.
By Tom Budszus, Alliance News reporter
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Vietnam Enterprise Investments (VEIL)