Last checked at 
10 Oct 2019 10:45
VietNam Holding Limited ("VNH" or the "Company")
Monthly Investor Report
A report detailing the activities of the Company for the month September 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 and a summary of the report is included below.
Investor Report Summary
The Fund's NAV per share increased by 1.9% in September (+8.3% fiscal year-to-date), underperforming the Vietnam All Share Index which rose by 2.3% but outperforming the MSCI EM Index which rose by 1.7%. Positive contributors were led by FPT (12.3% NAV, +8.7%) and Mobile World Corp (8.4% NAV, +7.9%), both of which reached historical highs during the month, and Dat Xanh Group (5.4% NAV, +12.6%). Detractors in the portfolio included Vincom Retail (4.4% NAV, -3.9%) and Phu Nhuan Jewelry (9.8% NAV, -2.2%).
Gia Lai Electricity, (GEG, 3.2% NAV), listed on the Ho Chi Minh City Stock Exchange on 19 September. GEG is a leading developer of renewable energy in Vietnam and is backed by the IFC (part of the World Bank) and Armstrong Energy, a Singapore-based renewable energy specialist. GEG's portfolio includes 200MW of grid-connected utility solar and 85 MW of run-of-river Hydropower. To-date 10% of Vietnam's electricity generation is through wind and solar power, and the Government plans to triple renewable energy capacity to 15 GW by 2030. GEG is well positioned to develop more solar and wind 'farms', subject to the finalization of new Feed-In-Tariffs and securing additional project finance. Once operational, solar farms are relatively low maintenance, with strong cash-flow potential. Wind farms are much more complex but are more efficient than solar. Renewable energy plants do face some curtailment risk, as Vietnam's electricity grid needs further investment, but GEG can mitigate this to a certain extent as its portfolio is diversified across many projects and locations.
Vietnam's macroeconomic position remains strong and it has the highest manufacturing and processing growth rate in ASEAN, contributing to a 9.6% year-on-year rise in Industrial Production (a four-year high). GDP growth reached the highest level in nine years at 7.0% year-on-year, led by manufacturing (+11.4%), retail (+8.3%), and transportation and logistics (+7.8%). The trade surplus at 30 September was USD 5.9bn, based on preliminary GSO data. Overall exports rose 8.3% year-on-year, and exports to the US rose 28% to USD 45bn as Vietnam gains from the ongoing trade-war. The VND has been relatively stable this year.
For more information please contact:
Dynam Capital Limited
Craig Martin Tel: +84 28 3827 7590
info@dynamcapital.com |www.dynamcapital.com
www.vietnamholding.com
finnCap
Nominated Adviser and Corporate Broker Tel: +44 20 7220 0500
William Marle / Giles Rolls