Last checked at 
15 Dec 2023 07:01
VietNam Holding Limited ("VNH" or the "Company")
Monthly Investor Report
A report detailing the activities of the Company for the month of November 2023 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: A climactic end to an anti-climatic year
Vietnam saw advances on both economic and stock market fronts to help it wind down the year on a rising tide. Trade continued its road to recovery from ongoing post-pandemic global macro risks, hitting a new record trade surplus of US$25.8bn for the eleven months of 2023 (11M2023). Exports, up +6.7% year-on-year (YoY), rebounded for three consecutive months with electronics goods showing a particularly strong pace of growth in November. 'Made in Vietnam' is attracting more attention than ever on the global stage and foreign direct investment in Vietnam remains robust. 11 months' disbursed FDI rose by +2.9% YoY and registered FDI surged by 14.8% YoY. Indeed, public investment is also accelerating, as the government ramps up key transport infrastructure projects with commitments until 2026. Investment in energy infrastructure will also be promoted further after official approval of the US$22.8bn Power Plan 8. Public investment in 11M2023, up +23% YoY and accounting for 75% of the whole year target.
During a reception hosted by Vietnam's PM in Hanoi in November, the president of the US Semiconductor Industry Association (SIA) stated that Vietnam is the most appealing destination for US investors in his industry and could serve as a strategic partner in the supply of a talented workforce. With leaders from Intel, Qualcomm, Ampere, and ARM also in attendance, he said that US corporations are willing to develop ties and increase investment in Vietnam, particularly in training workers to the highest possible skill levels. Vietnam presently has 6,000 semiconductor engineers, with a target of training 50,000 by 2030. Vietnam is also the world's second largest exporter of mobile phones after China.
Vietnam recently welcomed Chinese president Xi Jinping for a state visit to Hanoi on the 15th anniversary of the establishment of a 'comprehensive strategic partnership' between the two countries. This followed US president Joe Biden's own visit a few months earlier when Vietnam upgraded its relationship with the US to the same partnership status. China is Vietnam's largest trading partner and second largest export market, after South Korea, and is now a major source of foreign investment in Vietnam. The historic visit set new tones for what is to come in 2024 as both countries agreed to build a 'shared future' and strengthen their bilateral relationship.
November also saw positive results for Vietnam's equity market, with the benchmark VN Index gaining +6.4%. This was mainly due to eased FX risk and ample liquidity despite the ongoing volatility stemming from recurring rumours about corporate investigations. The outlook for further stock market increases is promising. Vietnam's government has been paving the way for stronger domestic consumption in 2024 and has implemented multiple measures to support the economy, including lowering interest rates, deferring loan payment timelines and cutting value added tax. Plans to change the property laws in order to unwind the bottleneck in project development are also expected to set the ground for a new growth cycle.
VNH's NAV rose 12.7% in November, outperforming VNAS (+9.0%). Year to date the fund is the top-performing Fund in Vietnam, with the discount to NAV the narrowest of the three London-listed Vietnam funds.
VNH has convened an annual general meeting (AGM) and an extraordinary general meeting (EGM) for the 21st of December 2023 in Paris and would like to remind shareholders of the trust's five-yearly continuation vote and proposed annual redemption facility, which is aimed at further narrowing the discount of the company's share price to net asset value. The Company's notice of AGM and EGM, released on 27 November 2023, can be found 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
William Marle