Vietnam Holding reports 1.9% NAV growth, tightens discount as economy surges
() , an investor in high-growth companies in Vietnam, announced its interim results for the 6 months to December 31, 2024.
reported record-breaking interims for 2H24 as NAV/share rose by 1.9% to US$5.234, surpassing the Vietnam All Share Index (VNAS), which gained 1.6% during the same period. 's share price increased by 1.2% in 2H24, reflecting a significant reduction in discount to NAV. As the fund's share price now closely reflects the value of its assets, was able to issue shares for the first time in a decade.
's strong 2H24 performance contributed to a full-year NAV/share growth of 16.5%, driven by strong performances across its technology, consumer, industrial, and bank holdings. The half also featured 's first annual redemption program, which saw shareholders redeem c. 12% of the fund's shares for cash. The initiative enhanced liquidity without destabilising the portfolio, further reinforcing investor confidence.
Accolades further highlighted 's strong performance and commitment to Environmental, Social, and Governance (ESG) values. During the period, won the Citywire Investment Fund of the Year award for single-country emerging market funds and two additional honors for excellence in investment management. As a long-time signatory to the UN's Principles for Responsible Investment (PRI), also received top scores in transparency and governance, strengthening its leadership in responsible investing.
Vietnam's economy achieved remarkable growth in 2024, with GDP rising by 7.09%, surpassing the government's 6.5% target and building on 2023's 5.05% increase. The strong growth was fueled by robust domestic consumption, resilient manufacturing, record public expenditure of US$26.5bn, and increasing FDI, which reached US$38.2bn. Vietnam aims for 8% GDP growth in 2025, with a focus on increasing productivity.
Looking ahead, expressed cautious optimism for Vietnam's economic outlook, buoyed by government support for private sector growth, stable inflation, and increasing FDI boosting the technology, manufacturing, and renewable energy sectors. Geopolitical risks, including uncertainties around the new US administration, should be offset by Vietnam's continued strong economic momentum and high-growth investment opportunities.
2025 should be another year of strong growth, underpinned by large-scale infrastructure development, a favourable regulatory environment, and continued FDI inflows. The consumer sector should be bolstered by rising disposable incomes and improved consumer sentiment while the industrials sector should continue to benefit from infrastructure spending, including renewables.
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