Vietnam Holding Ltd said July was a volatile month for the country, as the economic growth streak of the past 12 months was affected by the spread of the Covid-19 delta variant and regional disruption.
The fund’s net asset value (NAV) was down 2.6% for the month but outperformed the VNAS and other indices in Vietnam, which saw their biggest equity market declines since the pandemic.
FPT remained a top positive contributor in VNH’s portfolio as demand for technology and IT services continue to thrive throughout the pandemic.
In response to the rising infections, the Vietnamese government plans to vaccinate 70% of the population in the capital Ho Chi Minh City, where most of the cases in the country were concentrated, by the end of August.
Dynam Capital, the fund’s manager, also highlighted Vietnam’s position in the electric vehicles market following the UN climate change report earlier this month.
Vietnam’s first-ever domestic car manufacturer, VinFast, a subsidiary of Vingroup, sold 50,000 e-motorbikes in 2019, it points out, and has partnered with Austria-based battery tech provider, Kreisel Electric, to make batteries for electric cars and buses.
Collaborations such as this offer “opportunities in logistics and industrial real-estate, which are sectors we are invested in, and we see as primed for longer-term growth”, said Dynam.
VNH also reminded investors that on August 3, it announced a tender offer for 30% of the company’s shares at a 2% discount to August 31 NAV.
Shareholders on the register at August 2 may participate in the tender by 26 August and all are reminded to vote prior to the August 31 EGM.