Vietnam Enterprise Investments up 13% over benchmark in first half of the year

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Vietnam Enterprise Investments Limited added another 5% to its net asset value in June, bringing its NAV gain to 42% for the first half of the year – over 13% ahead of the country’s benchmark index.


The FTSE 250-listed investment trust said its performance for the previous month was driven by double-digit gains in Vietcombank (VCB), Vinhomes (VHM) and Novaland (NVL), even though its two largest holdings, HoaPhat Group (HPG) and VPBank (VPB) both fell over the month.


VCB played catch-up in June, noted the trust’s investment manager Dragon Capital, with the bank registering the biggest monthly gain among the listed banks as investors anticipated regulatory approval for a dividend payment.


“The bank remains one of the safest in the system as well as the most profitable, having posted the highest 1Q21 profit, a position that it will likely retain throughout 2021,” said deputy portfolio manager Tuan Bui Minh.


Sentiment in VHM also improved noticeably following the setting of an ambitious 24% profit growth target for the year, which if achieved, “would cement VHM’s position as one of the most, if not the most, profitable listed companies in Vietnam”, he added.


On the downside, HPG, VPB and TCB consolidated after performing exceptionally well in May, with HPG expected to be impacted by two price reductions in June in order to support a softening of selling volume.


“That said, the 2Q21 outlook and guidance for all three companies remain strong and could boost sentiment when the results are announced,” said Tuan.


The investment manager also noted that the Vietnam Equity UCITS fund (VEF) rose 6.8% in June, slightly outperforming the FTSE VN Index’s 6.4% rise, and thereby extended its outperformance over the index to 13.8%.


Brokerage stocks contributing the most to the fund’s active return in June, Dragon said in the report.

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