Vietnam Holding posts 21.3% YTD gain, citing strong tech and banking performance in September report
( ) , an investor in high-growth companies in Vietnam, has announced its monthly investor report for September 2024, issued by 's investment manager Dynam Capital.
Dynam noted that Vietnam remained resilient despite damage caused by Typhoon Yagi in early September that affected the agricultural sector. In his first international visits, new president To Lam toured the world with significant visits to China, the US, Cuba and France. Lam continued to maintain Vietnam's 'bamboo diplomacy' approach, trying to balance relations between the US and China. Lam's visits to both countries were significant for strengthening economic ties and attracting FDI.
Lam's actions contributed to keeping Vietnam's GDP growth momentum strong, with 2024 projections in the range of 6-7%. The IMF is currently forecasting 6.1% growth, driven by strong external demand, resilient FDI, and supportive fiscal and monetary policies. HSBC recently raised its forecast to 7%, highlighting strong Q3 performance.
Likewise, equity markets reflected this growth in September as they began to price in a more positive macro outlook, boosted by a weaker US dollar and the Fed rate cuts.
View from Vox
Vietnam's economy remained robust and kept its momentum in September, with strong GDP growth projected for Q3 and 2024 by the IMF and top-tier investment banks.
's investments reflected this, with the fund up 21.3% for the first 3 quarters of 2024, compared to the VNAS benchmark's 15% growth for the same period.'s outperformance was largely due to its largest holding FPT, one of Vietnam's leading technology companies. Its stock surged by c. 60% during the period, demonstrating the strength of Vietnam's rapidly growing digital sector. Within financial services, Sacombank (4.1%) and Techcombank (6.4%) were notable, seeing large buy-ins. STB reported a 12% increase in profits for H1, while TCB reported a pre-tax profit reflecting 18.4% annual growth.
maintains selective overweights in banks and retails, expecting they will continue to outperform in H2 2024. Dynam expects strong EPS growth in H2 while maintaining a forecast of c. 20% EPS growth for 2025. 's discount-to-NAV remains the narrowest by far of the 3 UK-listed Vietnam funds.
In its recently issued annual report to June 30, 2024,
reported a significant increase in NAV during the period of 25.5% to US$86.7m, attributed to its high-growth portfolio featuring Vietnamese tech, real estate, and renewables companies. recorded an impressive total return of 38.5%, significantly outperforming the tamer US and Chinese markets during the period. We expect continued double-digit NAV growth in the coming years.Additionally,
has adopted stringent ESG investment criteria, particularly in the area of sustainability through its investments in solar and wind, supporting Vietnam's commitment to net-zero by 2050.Follow News & Updates from Vietnam Holding:
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