VietNam Holding Limited ("VNH" or the
"Company")
Monthly Investor Report
A report detailing the activities of
the Company for the month of June 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: New Era of
Growth
Vietnam enjoyed accelerated growth
during the second quarter of 2024 (2Q2024) with sustainable
recovery across sectors driving GDP up by 6.9%, the second highest
second quarter surge since 2019. In fact, June proved how the
country's economic growth has been bolstered by resilient rebounds
of exports in key products - not least in computers and
electronics, up 28.6% year-on-year (YoY) - across all major
markets.
GDP growth for the first half of the
year (1H2024) was +6.4% YoY thanks to sustained industrial
production, effective inflation control measures, and
ever-increasing foreign investment. Although the industrial
production index showed slower growth in the first quarter of 2024
compared to pre-pandemic levels, efforts to boost manufacturing
activities have only intensified throughout 1H2024 and we saw
Vietnam's PMI climb to a near record high in June. The Vietnamese
government and local authorities have been actively supporting
enterprises by facilitating access to new raw material sources and
markets, as well as implementing incentive policies for businesses
facing production and export challenges amidst the many global
economic uncertainties today.
As anticipated, foreign direct
investment (FDI) disbursement in Vietnam continued to flourish in
June, reaching US$10.8bn for 1H2024, up +8.2% YoY, the highest rise
for the first half of a year since 2012. Furthermore, disbursed FDI
is forecast to increase 10% per annum throughout 2024 to 2026 due
to large registrations recorded in 2023. Vietnam remains in an
increasingly attractive position in terms of location, its educated
workforce and growing middle class, plus the fact that
multinational companies continue to diversify supply chains from
China. Recent upgrades of diplomatic ties between Vietnam and the
US, Japan, and Australia, are also strengthening its role in global
trade.
Vietnam continued to reap healthy
retail sales in June, up +9.1% from May. This stems mainly from
hospitality, food services and tourism, with international arrivals
jumping a massive +58.4% YoY in 1H2024, +4.1% above the
pre-pandemic level. Indeed, Vietnam's wider consumer services
sector has been crucial to driving growth this year, contributing
43.4% of GDP in June, and thus reflecting a broad-based recovery in
domestic consumption and services. Increased public investment, up
4.8% for 1H2024, has played another instrumental part in the
country's growth story by enhancing connectivity and supporting
manufacturing activities. According to the Ministry of Finance,
there was a fiscal surplus of US$9.5bn in the first five months of
2024 (5M2024), further enabling the government to do more to
bolster economic recovery. We expect credit growth in 2024 to be
around 13-15% and the government to continue easing monetary and
fiscal policy throughout the second half of the year.
Vietnam's stock market showed an
overall solid performance in 2Q2024, with significant gains across
various sectors, particularly in technology which has been
dominated by digitalisation and AI developments. The VN-Index was
up 10.2% YoY in 2Q2024, outperforming the MSCI EM Index and
neighbouring markets and still offering attractive valuation for
long-term growth versus peers. In June, it briefly crossed 1,300
points for the first time since 2022, even though market indices
went sideways as most local investors were waiting for Q2 business
results. Investor enthusiasm in technology continues apace, not
least after a NVIDIA delegation visited the country and announced
various collaborations with companies, such as FPT, VNH's top
holding. Although the portfolio also went sideways in June given
local investors' sentiment, FPT performed exceptionally well as
investors were willing to pay a premium for Vietnam's fast-growing
IT sector and how it facilitates the world's rapid green and
digital transformations.
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