VietNam Holding
Steady outperformance and solid fundamentals
19 August 2024
VietNam Holding (VNH) posted a solid net asset value (NAV) per share total return (TR) in the first seven months of 2024 (7M24) of 14.5% in US dollar terms, which was ahead of the Vietnam All Share Index’s (VNAS’s) return of 8.1%. Over the last 10 years, VNH has delivered a c 10% return pa and consistently outperformed VNAS by c 3pp pa. The index in turn performed ahead of both emerging and frontier markets averages. Vietnamese equities offer a combination of undemanding valuations (a 20% discount to 10-year historical average based on one-year forward multiples) and solid earnings outlook, with LSEG Data & Analytics consensus expectations of 28% EPS growth over the next 12 months for local equities and 6% GDP growth in Vietnam in 2024. VNH’s shares trade at a 10% discount to NAV. MORE »
Introducing redeemable shares
12 April 2024
VietNam Holding (VNH) posted a solid net asset value (NAV) per share total return (TR) in 2023 of 15.8% (22.4% in US dollar terms), outperforming the Vietnam All Share index (VNAS), which posted an 11.7% return, and its direct peers. The investment manager remains confident that 2024 will be strong for Vietnamese equities, underpinned by average 20% y-o-y expected earnings per share (EPS) growth. VNH recently introduced a share redemption facility (on top of regular share buybacks), which allows shareholders to redeem their shares at NAV each September. We believe that this has contributed to the recent narrowing of VNH’s share discount to NAV to 3.0% compared to its three-year average of 14.1%. MORE »
The next five years and beyond
28 June 2021
In early 2021, the 13th National Congress of the Communist Party of Vietnam elected a new politburo government for the next five years. There is strong continuity in the government’s structure and Dynam Capital (Dynam), which took over management of VietNam Holding (VNH) nearly three years ago, describes the government’s mandate as ‘pro-business’. Dynam states the government emphasises economic growth with a big push to develop domestic infrastructure, including a new international airport and urban metro systems in Hanoi and Ho Chi Minh City. Vietnam handled COVID-19 well and recorded 2.9% GDP growth in 2020 versus a decline in the world economy of 3.5% (IMF data). This growth paves the way for the continued expansion of domestic consumption and Dynam’s investment team chooses a tightly focused selection of businesses set to benefit from the positive demographic, industrial and urbanisation trends. MORE »
‘Bun Bo Biden’ prospects in Vietnam
15 December 2020
July 2020 marked the second anniversary of Dynam Capital (Dynam) taking over the management of VietNam Holding (VNH). Dynam’s portfolio team picks a tightly focused selection of businesses set to benefit from positive demographic, industrial and urbanisation trends. Vietnam is a vibrant Asian country with a sizeable population of c 100m, that has surprised the world with its strong economic performance in 2020, which could lead more international investors to take notice. Vietnam has made successful trading alliances in Asia and globally and its ability to attract foreign direct investment should help underpin growth prospects for its companies. MORE »
Weak sentiment provides opportunity
16 March 2020
VietNam Holding (VNH) aims to generate long-term capital growth through investing in companies listed in Vietnam, employing a fundamental approach. The fund has undergone significant changes since September 2017, including the appointment of a new board and management company, to address previous governance and performance shortcomings. The wide discount to NAV partly reflects these historic issues, and has been amplified by weak investor appetite for Vietnam equities due to uncertainties such as the impact of the coronavirus outbreak. The restructured VNH may provide long-term investors with the opportunity to participate in Vietnam’s strong medium- to long-term economic prospects, with the potential of a narrowing discount should some of the above concerns be alleviated. MORE »
Das umstrukturierte Unternehmen bietet neue Möglichkeiten
5 November 2019
VietNam Holding (VNH) aims to deliver long-term capital growth, primarily through investing in listed companies in Vietnam. The fund is also permitted to invest in unlisted companies, which in practice are those that have visible near-term plans to list. The fund has undergone significant changes since September 2017, including the appointment of a new board and manager, Dynam Capital Limited. These changes were implemented to address governance issues associated with the previous board and manager, which contributed to VNH’s wider-than-peers discount to NAV. Vietnam’s medium- to long-term economic outlook is one of the brightest in the Asia Pacific region and investors looking for exposure to its rapid growth may find the restructured VNH of interest. MORE »
Restructured company offers opportunity
9 October 2019
VietNam Holding (VNH) aims to deliver long-term capital growth, primarily through investing in listed companies in Vietnam. The fund is also permitted to invest in unlisted companies, which in practice are those that have visible near-term plans to list. The fund has undergone significant changes since September 2017, including the appointment of a new board and manager, Dynam Capital Limited. These changes were implemented to address governance issues associated with the previous board and manager, which contributed to VNH’s wider-than-peers discount to NAV. Vietnam’s medium- to long-term economic outlook is one of the brightest in the Asia Pacific region and investors looking for exposure to its rapid growth may find the restructured VNH of interest. MORE »
