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 May 2022 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 - Made in Vietnam

Vietnam is fast becoming one of the main beneficiaries of shifting supply chains and in recent months has increasingly shown how the government's 'open for business' policies are paying off. In mid-May, Prime Minister Pham Minh Chinh rang the closing bell of the New York Stock Exchange (NYSE), proving how Vietnam has progressed its participation in the international capital markets to help its companies further finance growth. As the government continues to build on its economic story post-pandemic, by also focusing on improving regulatory and legal frameworks, we see how the 'Made in Vietnam' theme is making its mark on the global stage more than ever before. Later in May, Apple announced that for the first time it is moving some iPad production out of China and into Vietnam after strict Covid lockdowns in and around Shanghai led to months of severe supply chain disruptions. With iPads now the second major line of Apple products made in Vietnam, the announcement shined more light on the country's expanding role in global trade and manufacturing. Companies, such as Samsung and Intel, were some of the first foreign investors to help make Vietnam one of the world's top exporters of electronics and in recent years we have seen domestic brands add to that momentum. Now manufacturers from all over the world are looking at Vietnam as part of their relocation strategy to effectively diversify and reduce supply chain risks.

Unlike China, Vietnam has largely overcome the pandemic, having successfully rolled out a vaccination programme following the hard-hitting Delta wave last year. Speaking at the NYSE, Vietnam's Prime Minister emphasised the government's commitment to supporting 'sustainable, law-abiding development' as businesses move on from the Covid crisis. Legal action was taken again last month to remove corrupt officials, showing how the government intends to crack down on regulatory breaches that bruise the integrity and efficiency of its markets. Meanwhile, the Asian Development Bank confirmed its growth forecasts for Vietnam's economy: 6.5% in 2022 and 6.7% in 2023. As discussed in our recent webinar, 'Vietnam's Prominent Role in the Global Supply Chain', the country has not been as badly hit by higher fuel costs and increased fertiliser prices as others because as a food producer it can feed itself and export anything from fruit and vegetables to coffee. Fish and rice prices in Vietnam have been unaffected by the war in Ukraine, for example, with the cost of pork actually going down 20% due to a greater supply.

Although equities worldwide saw another bumpy month, given the escalating inflationary concerns and tighter central bank policies, the Fund outperformed the Vietnam All Shares (VNAS) index, falling by 6.3% vs the VNAS decline of 7.5%. Year-to-date the fund has outperformed the index by 6.7% due mainly to overweight positions in ports & logistics, retail and telecoms (FPT). There has been diverse performance among positions. Gemadept (GMD) and Hai An Transport (HAH) were top positive contributors, having continued to benefit from supply chain shifts and elevated freight costs. As almost all coronavirus restrictions are now lifted in Vietnam, retailers also continued to recover strongly with portfolio companies, Mobile World Investment Corporation (MWG) and Phu Nhuan Jewelry (PNJ), expanding their businesses through the opening of new stores. Despite 2022's nuances and difficult global risk environment, the Fund has demonstrated outperformance over 1, 3, and 10 years. Our size means we are nimble and able to take advantage of opportunities across small, medium and large companies as industry shifts and cultural transformations unfold. Valuations also have become more compelling following the correction in April when domestic retail investors faced margin calls, and the fund has cash to take advantage of this. Indeed, over the past month we have seen evidence of foreign flows returning to Vietnamese equities and expect long-term performance of the market overall to strengthen as the country emerges from the Covid era with increased resiliency, and renewed growth in consumption and modern industrialisation. Looking ahead into the second half of the year, we expect foreign direct investment to rise as well, particularly as travel resumes and demand for infrastructure development grows.

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

Corporate Broker and Financial Advisor Tel: +44 20 7220 0500

William Marle