Vietnam Holding tapped into urbanisation and consumerism themes

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  • Invested in 20-30 local companies
  • Themes are industrialisation, urbanisation and consumerism
  • Tangible focus on environmental, social, and governance investing

How it’s doing


In October, VietNam Holding Limited (LON:VNH) reported its net asset value (NAV) rose by 4% in September helped by increased exposure to the country’s banking sector.


In its monthly update, fund manager Dynam Capital noted that the benchmark VNAS Index performed well in September, rising 4.4% for the month, driven mainly by banks, food & beverage (F&B) and industrial goods.


Most of the listed banks achieved above market-expectation earnings for the third quarter, Dynam said, and F&B companies (VNM, SAB) are also likely to release surprise earnings growth considering the notable domestic retail sales increases.


“The Fund’s NAV rose by 4.0% led partly by our increased allocation to the banking sector: we have more than doubled our allocation this year to 20% (the index weighting is more than 25%).


“As listed banks tend to be large, a consequence of this higher allocation is that our median portfolio market capitalization has risen to cUS$833m. This has also resulted in a higher liquidity profile for the underlying portfolio.


“In our view, the banking sector stands out in Vietnam unlike in many developed countries right now. Banks are regulated more than other industries and as a result must adopt best practice standards, which pushes them to maintain healthier balance sheets and operational resilience.


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Inflexion points


  • Strong growth in Vietnamese economy continues
  • Share buy-back programme proposed

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