Vietnam Holdings Regulatory News (VNH)

VietNam Holding Limited ("VNH" or the "Company")

Monthly Investor Report

A report detailing the activities of the Company for the month of June 2025 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 fast and furious first half of 2025

June was a standout month for Vietnam, with the economy and equity markets delivering strength on multiple fronts. GDP growth for the first half of the year came in at 7.52% -- the highest H1 figure in fifteen years - and was propelled by a powerful mix of manufacturing, services, and timely rollout of public investment. Trade performance was equally robust in June, with exports up 16.3% and imports rising 20.2%, resulting in a trade surplus of $7.6bn year-to-date.

Despite the U.S. tariff saga continuing to cause unprecedented uncertainty globally in June, Vietnam's government demonstrated acclaimed diplomatic skill and economic resilience, negotiating effectively with the Trump administration to maintain a relatively favourable position compared to other countries in the region. However, the devil is in the details and market watchers are bracing for the next iteration of U.S. policy guidance expected before August 1. In the meantime, speculation continues over whether TACO - "Trump Always Chickens Out" - will actually materialise into significant headwinds for Vietnamese exporters, though we remain alert to both direct and second-order effects in export-heavy names and supply chain-sensitive sectors.

Tourism also shined bright with the number of tourists surging to a record-breaking 10.7 million in H12025, rising 20% year-on-year and including 2.7 million arrivals from China and 2.2 million from Korea alone. The remarkable rebound in services, particularly in tourism and retail, is now approaching pre-pandemic levels, fuelling consumption and investment confidence across sectors. While this resurgence brings many economic benefits, it also presents infrastructure and sustainability challenges, already prompting Vietnamese authorities to work with major domestic players to develop new destinations and reduce burden on existing tourist hubs.

July began with a significant administrative shift: Vietnam consolidated from 63 provinces to 34, creating a newly expanded Ho Chi Minh City (HCMC) that now accounts for over a quarter of national GDP. This reclassification isn't just symbolic - it is expected to influence infrastructure priorities, inter-provincial connectivity, and the distribution of public and private investment flows in the months to come. The continued rise of Vietnam's urban core offers tangible opportunities for long-term capital allocators, particularly in sectors tied to domestic demand, logistics, and financial services.

Unsurprisingly, market sentiment has been steadily improving and reflected in daily trading volumes, which have been consistently around the $1bn mark. Domestic participation continues to expand, with over 10 million retail trading accounts now open, representing nearly 10% of the population - a striking milestone in Vietnam's capital market development story. Foreign flows, while still mixed, have stabilised in recent weeks, and structural reforms such as the approval of international financial centres in HCMC and Danang are building an even more investable and transparent equity landscape.

Against this backdrop, the Fund returned 4.4% in June, outperforming the index by 1.0%. Our outperformance was driven primarily by positions in banks and retail. While the macro momentum continues to be strong, company-level resilience remains a priority for us. Names with pricing power, clear strategic direction, and balance sheet strength are favoured, particularly in consumer sectors where margin protection is becoming a differentiator. In banks, increased credit appetite and moderating policy rates have supported net interest margins, with leading institutions benefiting from their scale and distribution strength.

Looking ahead, our outlook for the rest of July is cautiously optimistic. Key indicators remain very supportive - tourism is robust, public investment is accelerating, and household consumption continues to recover. However, policy clarity around U.S. tariffs and regulatory developments will be closely monitored. As always, the Fund's positioning is grounded in selectivity and discipline, with a continued focus on quality growth and governance. Vietnam's structural story is ever so compelling, and June's performance all around reaffirmed the value of local knowledge, on-the-ground engagement, and a long-term view.

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