Vietnam Holding Ltd (LON:VNH) has reported a rise in its net asset value (NAV) in November as the closed-ended fund hailed “exceptional export growth” and a “significant come back” in retail sales in Vietnam.
For the period to November 30, 2020, the fund reported a NAV of 221.6p per share, a month-on-month increase of 11.1% and a 6.7% rise in the year-to-date. The firm’s monthly rise in value also beat out the Vietnam All Share Index (VNAS), which rose by 8.5%.
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Reviewing the period, the fund’s investment manager Dynam Capital noted that consumption and manufacturing in Vietnam have “gained momentum month after month since May”, with exports increasing 8.8% year-on-year alongside a 13.4% rise in imports despite what it said were “setbacks for many manufacturers due to the extreme storms and flooding”.
Dynam also said retail sales in the country had made a “significant come back in November”, rising 8.5%.
The investment manager continued by saying that the fund has benefited from its increased weighting in banks as well as a balanced allocation in industries and “some profit-taking“ from its telecoms investments.
Vietnam Holding reported strong growth in the largest investments in its portfolio, with its fourth-largest holding, shipping firm Gemadept Corp, reporting an 18.8% increase in NAV, the biggest rate of increase among the fund’s ten biggest investments.
The company’s largest holding, IT group FPT Corp, reported a 7.8% increase in NAV, while the second and third biggest investments, steel firm Hoa Phat Group and Vietin Bank rose 16.5% and 15.8% respectively.
Looking ahead, Dynam said they “could not be more positive about Vietnam moving into 2021” despite the lingering risks of coronavirus (COVID-19).
“The country has stood out for its handling of the crisis and strong macro conditions are paving a good foundation for future growth”, the investment manager said, adding that they expected “strong money inflows” into Vietnam going forward from foreign direct investment.
Shares in Vietnam Holding rose 0.6% to 176p in late-morning trading on Monday.
