VietNam Holding Limited ("VNH" or the
"Company")
Monthly Investor Report
A report detailing the activities of
the Company for the month of November 2024 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: Economic
momentum and market moves
Vietnam's economic and stock market
continued to make strides in November. Key highlights include a
record high trade surplus of USD 24.3bn for the first 11 months of
2024, robust export and import growth, and resilient export
performance across major markets. Exports grew by 14.4%
year-on-year (YoY), underlining Vietnam's ongoing sustainable
recovery in global demand. Key export products such as computers,
electronic products, phones, machinery, and textiles showed
significant growth. This was complemented by exports to major
markets like China, the US, Korea, Japan, and the EU recording
substantial increases for the month. Imports grew by 16.4% YoY,
further supporting economic activity.
Public investment also accelerated
in November, achieving 73.5% of the annual target by November, with
USD 22.9bn disbursed, reflecting a YoY rise of 2.4%. Retail
sales remained healthy thanks mainly to growth in hospitality, food
services and tourism. While retail sales have performed strongly
throughout 2024, the pace remains slower than before
Covid.
November was also notably
highlighted by the government's big plans to further fuel economic
growth over the next five years, and this includes the approval of
a USD 67bn high-speed railway project. Infrastructure is the
backbone of the economy and society, and as we discussed in a
recent article, 'Planes,
trains, and automobiles', this new fast
line linking Hanoi and Ho Chi Minh City in just five hours will be
a game-changer for both cheaper and environmentally-friendly
connectivity in promoting rapid economic growth.
The real high point is the
attractive valuations for long-term growth that Vietnam's equity
market continued to offer, despite foreign investors net selling.
VNH's NAV per share saw a slight decline of 2.4% in November,
underperforming the VNASTR index, but as awards season continues,
we were proudly named as the winner in another magazine, accepting
the UK Investor
Magazine's Award for Best Emerging Markets
Trust.
Additionally, the approval of the
amended Securities Law by the National Assembly on November 29
marked a significant step forward for Vietnam's stock market,
laying the groundwork for its long-term development and aspirations
of achieving emerging market status.
The revised law introduces several
pivotal provisions, including strengthening the responsibilities of
issuers, advisory units, and auditors in the issuance licensing
process. It is expected to enhance the responsibilities of market
participants, improve transparency, and boost regulatory monitoring
capabilities. These measures will not only strengthen investor
confidence but also provide a robust foundation for the Ministry of
Finance and the State Securities Commission to refine the legal
framework and operational systems necessary for a market upgrade
over 2025 to 2026.
Looking ahead to 2025, forecasts
suggest continued economic growth of 6-8% and stable inflation. The
World Bank projects a 6.5% GDP increase, while the International
Monetary Fund anticipates a 6.1% rise, supported by strong external
demand and resilient foreign direct investment. Global economic
uncertainties and trade policy shifts, particularly given
President-elect Trump's plans, will still pose challenges.
Vietnam's Prime Minister has urged the U.S. to lift certain
high-tech export restrictions, emphasising the importance of
bilateral relations.
Overall, while Vietnam's economy and
stock market have shown extraordinary resilience and growth in
2024, maintaining this momentum into 2025 will require navigating
both domestic reforms and international economic dynamics. VNH
portfolio is well-positioned for the year ahead, focusing on
domestic consumption, urbanisation, and industrialisation, with top
holdings in sectors like banking, retail, and telecommunications.
Wishing you all happy holidays!
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