VietNam Holding Limited ("VNH" or the
"Company")
Monthly Investor Report
A report detailing the activities of
the Company for the month of March 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: Great
Expectations
Vietnam's economy continued its
exports-led growth story in March, posting a relatively impressive
GDP rise of 5.7% for the first quarter of 2024 (Q1 2024). While
this was the highest first quarter expansion in Vietnam since 2020,
it happened at a softer pace than expected with all main sectors
growing less than they did during the fourth quarter of 2023, when
GDP expanded by 6.7%.
AFF (agriculture, forestry, and
fishery), IC (industry and construction), and Services (information
and communications, financial and professional services) grew by
3.0%, 6.3% and 6.1% year-on-year (YoY) for Q1 2024, respectively.
These rates, albeit positive compared to other countries around the
world, highlight a divergence between domestic-oriented industries
and external-facing manufacturing sectors in Vietnam.
Despite the varied 'tides in March',
the country's ongoing recovery remains well on track as trade
prospects and foreign direct investment (FDI) continue to advance
extensively. First and foremost, FDI remains particularly strong
and sustainable, with a formidable 13.4% jump YoY for Q1 2024.
Moreover, manufacturing exports expanded by over 14% YoY for the
month and 17% YoY for Q1 2024, and we expect it to be the main
driving force behind our 2024 GDP growth forecast of 6.5% for
Vietnam. The robust export growth in Q1 2024 was largely due to the
continued upturn in computers and electronic products, up a
whopping 30.3% YoY, with Vietnam further benefiting as a key (and
increasingly attractive) hub to produce smartphones too.
Tourism also enjoyed more positive
momentum in March, with monthly inbound visitors exceeding
pre-pandemic levels thanks to a welcome surge in Chinese, Korean
and Taiwanese tourists. According to a recent report by the Vietnam
National Tourism Administration, the number of international
visitors for the quarter totalled more than 4.6 million, a massive
increase of 72% YoY and 3.2% over the same period in 2019 before
COVID-19 struck.
The International Monetary Fund
forecasts that Vietnam's economy could potentially reach US$470 bn
for 2024, underlining its status as an increasingly important hub
in Southeast Asia. As Vietnam enjoyed another record high trade
surplus in Q1 2024 - US$8.1 bn - we also must note the government's
commitment to enhancing trade agreements and modernising
infrastructure.
Vietnam's integrated role in the
global supply chain means it is affected by disruptions, including
the recent Red Sea shipping conflict and Baltimore bridge crash,
and the government showed that it is cognisant of the potential
implications as it focuses on improving its port logistics and
addressing businesses' changing needs given the accelerating
digital and green transformations.
In March, the Vietnamese Prime
Minister visited Australia and signed eleven cooperation documents
to expand their Comprehensive Strategic Partnership on energy
transformation and digital innovation, as well as building on
already established collaboration across cybersecurity, economic
engagement, and education. The advancement in bilateral ties with
Australia is the latest achievement for Vietnam's 'bamboo
diplomacy', as reported by Reuters in March. It reflects Vietnam's
successful enhancement of relations with major global powers in
recent years as the country navigates increasing global tensions
and tries to enhance corporate governance and trust.
Indeed, according to the General
Statistics Office, Vietnam witnessed a decade-high surge in new
business establishments during Q1 2024, with a total of 36,224 new
firms registered nationwide during the first three months of the
year. When factoring in enterprises resuming operations, the number
rose to 59,848. In Q1 2024, Vietnam granted investment certificates
to 644 new projects with a total registered capital of US$4.77 bn,
marking a notable increase of 23.4% in the number of projects and
57.9% in value YoY.
VNH's NAV rose +4.4% for March due
to the outperformance of our holdings in retail, telecoms, and
construction. The Fund has continued to outperform the Vietnam All
Share Index over 1, 3, 5, 10 and 15 years.
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