Vietnam Holdings highlights growing ESG commitment within portfolio

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VietNam Holding Limited (LON:VNH) has highlighted the growing trend and commitment among Vietnamese companies for environmental, social and governance (ESG) issues.

The trust notes the approval of a free trade agreement between the European Union (EU) and Vietnam signed during lockdown.

“It is unique because it includes certain ESG provisions, for example: property protection, labour rights and sustainable development,” said VNH.

“The inclusion of labour rights and sustainability criteria will ultimately strengthen the value of ESG measures in Vietnamese companies and lead them to think more long-term.”

Investee company Vinamilk (VNM was an early adherent of good corporate governance and has involved foreign specialists as supervisory and main board of directors for more than 12 years now.

VNM has attracted significant investment from regional strategic investors largely due its long-term performance and increasingly robust ESG reporting methodology, said the trust.

The value of the fund rose by 10% in August, reported VNH, helped by strong performances within its top ten holdings.

Vietnam’s All-Share Index rose as 10.2% as local investors returned to the market, said VNH, despite more short-term disruptions caused by a second wave of COVID-19.

Further targeted restrictions and travel bans will hamper the economy as COVID-19 lingers and GDP growth forecasts for Vietnam have been trimmed to 2.5%.

“In our view, Vietnam will also remain an attractive destination for international companies looking to relocate from China because of the trade war with the US and growing geopolitical uncertainties.

“The way Vietnam dealt with the first wave of the virus has given the world a lot of confidence in the country, and it can bank on that moving forward.”

Shares were unchanged at 150.5p.

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