Vietnam Holding reports resilient Q1 amid tariff tensions as Vietnam eyes 8% GDP growth in 2025
Dynam highlighted the strength of the Vietnamese economy as the nation nears the 50th anniversary of its reunification on April 30th. The milestone comes as Vietnam posts a robust 6.93% GDP growth in Q1 2025, its strongest first-quarter performance in 5 years, and sees its manufacturing PMI rise to 50.5 in March. The figures underscore Vietnam's progress toward its ambitious 8% GDP growth target for the year, solidifying its position as a rising economic power despite global trade uncertainties.
While US tariffs hit Asian exporters hard, the Vietnamese government sent trade envoys to Washington to strengthen its bilateral trade relationship with the US, where $36bn in trade agreements are under active negotiation. Simultaneously, Vietnam is advancing policies to attract high-value manufacturing while prioritising free trade negotiations with India, the Middle East, Latin America, Central Asia, and Eastern Europe.
Regarding Vietnam's equity markets, stocks made moderate gains in March, buoyed by the country's booming tourism sector. Markets recovered strongly after Trump's 90-day pause announcement, and are trading at attractive valuations not seen in 2 decades.
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A positive report from on its Vietnamese equity portfolio that showed resilience in March 2025 despite global trade headwinds. finished March underweight in export-related sectors, and has since rebalanced its portfolio to protect against tariff risks by increasing cash, investing more in retail, IT, and bank stocks, while reducing some logistics stocks. The portfolio is currently overweight domestically-orientated companies, while maintains its vision for continued high growth in domestic consumption, digitalisation, urbanisation, and industrialisation in Vietnam.
Vietnam's economy continues to deliver high growth - on track for 8% this year - despite recent trade uncertainty, which is likely to resolve quickly and favourably for the country. Vietnam maintains high-growth targets for the next decade, supported by ongoing initiatives to cut red tape, broaden economic diversification, and stimulate private sector growth. As the US-China trade war unfolds, tech suppliers still consider Vietnam an attractive China+1 alternative as they advance supplier realignment strategies.
has now outperformed the Vietnam All Share Index (VNAS) for 15 years. notes the March and YTD underperformance are function of a bifurcated market - foreign investors have been net-selling Vietnam and other emerging market equities for the past year, pulling down valuations in certain high-conviction large-cap stocks to single-digit P/E ratios. At the same time, Vietnam's 9 million domestic retail investors have been allocating more to certain key index stocks, which is intentionally underweight in.
The portfolio is on a single-digit P/E ratio, with forecast earnings per share growth of 20%. Once clarity on tariffs and greater certainty returns to markets, 's mid-term strategy should deliver.
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