VietNam Holding Limited ("VNH" or the
"Company")
Monthly Investor Report
A report detailing the activities of
the Company for the month of April 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: April's Movers
and Shakers
Vietnam's stock market weathered a
sharp correction in April with some expected profit taking after a
five-month rally. From the new KRX trading platform launch being
further delayed because of technical issues to the sudden
resignation of the Chairman of the National Assembly - a mix of
headline news rattled the market, 90% of which is driven by local
investors.
The changing global outlook to
'higher for longer' US interest rates also fuelled greater
volatility in the FX market, while growing global geopolitical
risks caused movements in crude oil and gold prices. With evolving
uncertainties around the wars and an unprecedented number of
national elections around the world this year, global stock markets
experienced declines as well - the Dow Jones (-5.0%), Nikkei 225
(-4.9%) and S&P (-4.2%) - adding to an already unsettling local
sentiment. Nevertheless, the VN-Index managed to recover nearly
half of the drawdown by the end of the month. Although down -5.9%
for the month, VNH still managed to outperform the index and
remains significantly ahead of the index year-to-date, and on a 1,
3, 5, 10 (and even 15)-year basis.
The 'made in Vietnam' theme
continued to propel the country's sustainable economic growth with
yet another record trade surplus, reaching US$8.4 bn in April.
Vietnam's exports to the US made a notable year-on-year increase of
19.1%, and its manufacturing PMI recovered to 50.3 from 49.9 in
March mainly due to a solid rebound of new orders which should pave
the way for further production and enhanced exports in coming
months. It is also worth noting that foreign direct investment
(FDI) implementation continued to rise for a 15th consecutive
month, resulting in a year-on-year (YoY) increase of 7.4% for the
first four months of 2024 (4M24). Disbursement in the Real Estate
sector surged by a whopping 100% YoY for the 4M24 period,
contributing the most to FDI implementation growth year to
date.
During the volatile trading month,
stocks tumbled across all sectors apart from Transportation,
Consumer Services and Technology. FPT and Gemadept, our top two
positions both made gains of 2.9%. FPT attracted additional
positive media attention in April having signed a MoU with Nvidia
to invest US$200m in building a cloud computing platform for AI
research and development in Vietnam. Narayana Murthy, the
billionaire co-founder of Infosys (and father-in-law of UK Prime
Minister Rishi Sunak) will visit Vietnam, and FPT, in May.
Gemadept reported better than expected first quarter results.
Despite high beta sectors such as Banks, Financial Services, Real
Estate and Construction performing poorly, most investee companies
reported Q1 2024 earnings growth in line with expectations. We took
the opportunity in the soft market to add to a couple of positions
where more foreign investor room became available.
The usual concerns about global
risks are bound to affect market sentiment in May but opportunities
will continue to emerge in Vietnam not least where FDI is
concerned. Vietnam continues to be a magnet for foreign enterprises
seeking investment opportunities and strategic partnerships across
sectors. According to the General Statistics Office, disbursed
foreign investment in Vietnam reached US$6.28 bn in 4M24, the
highest in five years. Vietnam also recorded over 51,000 newly
established enterprises during this period. So, considering the
significant 28.8% increase in the number of new projects in 4M24 -
totalling US$7.1 bn, a 73.2% rise in capital on the same period
last year - the mood in May could tell a different
story.
The National Assembly is also
meeting in May and will consider and decide on a raft of important
matters, including appointing a new Chairman, and a new President.
This may further strengthen domestic investor
confidence.
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