VietNam Holding Limited
(a non-cellular company limited by shares registered in Guernsey under the Companies (Guernsey)
Law, 2008, on 25 February 2019 with registered number 66090)
Interim Report
VietNam Holding Limited is pleased to announce its Condensed Interim Unaudited Financial Statements for the six-month period from 1 July 2024 to 31 December 2024
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"). Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain
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More information on the Company is available at
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www.vietnamholding.com LEI 2138006MNA9HTDYDJ975 |
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Investment Manager Dynam Capital Ltd. Craig Martin
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Tel.: +84 28 3827 7590
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Cavendish Capital Markets Limited |
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Corporate Broker |
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Trading: Johnny Hewitson |
Tel: +44 20 7220 0558 |
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Sales: Pauline Tribe |
Tel: +44 20 7220 0517 |
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Corporate Finance: Tunga Chigovanyika |
Tel: +44 20 7397 1915 |
Contents
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Chairman's Statement |
1 |
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Investment Manager's Report |
3 |
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Interim Report of the Directors |
6 |
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Statement of Directors' Responsibilities |
10 |
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Condensed Interim Unaudited Statement of Financial Position |
11 |
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Condensed Interim Unaudited Statement of Comprehensive Income |
12 |
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Condensed Interim Unaudited Statement of Changes in Equity |
13 |
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Condensed Interim Unaudited Statement of Cash Flows |
14 |
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Notes to the Condensed Interim Unaudited Financial Statements |
15 |
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Director Profiles |
21 |
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Key Parties |
22 |
Chairman's Statement
Dear Shareholders,
As we close the first half of the financial year, I am pleased to present this interim report covering the period 1 July 2024 to 31 December 2024. This year has been marked by significant strides both within Vietnam's macroeconomic landscape and the performance of VietNam Holding Limited (the "Company" or the "Fund"). The convergence of favourable policy measures, market sentiment, and our sustained strategic focus has created a fertile environment for the growth of your investment.
Fund NAV and Shareholder Returns
The share price and Net Asset Value ("NAV") hit historic highs during the period under review and the discount to NAV narrowed. In the period under review, the Fund's NAV per share rose by 1.9% to USD 5.234. This compares to the Vietnam All Share Index ("VNAS") gain of 1.6%. During the period the Fund's share price rose by 1.2%.
First Annual Redemption and Positive Impacts
This period also saw the successful implementation of the Fund's first annual redemption feature, which allowed shareholders to redeem a portion of their shares for cash during the period. Approximately 12% of the Company's shares were redeemed. The positive results of this process demonstrated both investor confidence and the Fund's proactive approach to providing liquidity to shareholders. The orderly nature of the redemption, coupled with continued strong performance, highlighted the stability of our underlying portfolio and its appeal among long-term investors.
Reduction in Discount to NAV
Perhaps one of the most significant achievements this period has been the significant reduction in the discount to NAV, a factor that continues to plague most closed-end investment companies. The share price now closely reflects the true value of the Fund's assets, and for the first time in over a decade, during periods in which the Fund has traded at a premium to NAV, the Fund has been able to issue new shares. This milestone is not only a reflection of improved investor sentiment, in part driven by the Company's strong performance but also underscores the effectiveness of our active shareholder engagement strategy and disciplined portfolio management. We are well-positioned to seize emerging opportunities in Vietnam's vibrant market, particularly in sectors poised to benefit from structural growth drivers such as urbanisation, industrialisation and the burgeoning middle class.
Award-Winning Performance
The Fund's achievements have not gone unnoticed. During the reporting period, we were honoured to receive multiple awards that recognise our dedication to delivering consistent returns, our Environmental, Social, and Governance ("ESG") commitment, and our investment excellence.
Specifically, we won the prestigious Citywire Investment Fund of the year award under the category of single country emerging market fund. We also received the Investment Week Investment Trust of the year award and the UK Investor Magazine country fund of the year.
The Fund has been a signatory of the UN's Principles for Responsible Investment ("PRI") since 2009, just three years after the UN established the PRI framework. We were the first Vietnam-focused fund to be a signatory. In the latest PRI Transparency report, the Fund scored three 5 stars, way above the median in all reported categories with scores of 92% for Policy Governance and Strategy, 93% under the listed equity (active) category, and 100% for confidence building measures.
These accolades are a testament to the quality of our team, our disciplined approach to value investing, and the long-term relationships we have built in Vietnam's dynamic economy. We are proud of these accomplishments, and they further motivate us to continue seeking out the best opportunities for our shareholders.
Outlook for 2025
Looking ahead, we remain cautiously optimistic about Vietnam's economic trajectory. The government's continued commitment to fiscal discipline, coupled with measures to support private sector growth, provides a strong foundation for growth in the year ahead. Inflation appears to be under control, and the central bank's policies suggest a manageable interest rate environment, which should be conducive to business expansion.
Furthermore, with the government prioritising foreign direct investment ("FDI") and infrastructure development, we expect to see substantial growth in key industries, such as technology, manufacturing, and renewable energy. That said, geopolitical and other external risks continue to loom on the horizon. It is too early to say what the new US administration (Trump 2.0) will mean for Vietnam. The board and the investment manager will keep a close eye on developments and the different scenarios that they pose.
As always, we remain focused on building a resilient portfolio capable of navigating both opportunities and challenges. We believe that Vietnam's long-term growth story remains intact, and our approach will continue to focus on identifying undervalued businesses that contribute meaningfully to this narrative.
In conclusion, the first half of the financial year has been a time of considerable achievement for the Company. I would like to extend my sincere gratitude to all our shareholders for their continued support and confidence. The progress we have made this period is a testament to our commitment to enhancing shareholder value and seizing the opportunities that lie ahead in one of the world's most exciting growth markets.
Yours sincerely,
Hiroshi Funaki
Chairman
VietNam Holding Limited
21 March 2025
Please refer to the attached PDF document to view the full announcement.
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