Monthly Investor Report

RNS Number : 4393V

VietNam Holding Limited

12 December 2013

 



VietNam Holding Limited (the "Company")

Investor Report

A report detailing the activities of the Company for the month of November 2013 has been issued by VietNam Holding Asset Management Limited, the investment manager of the Company. Electronic copies of the report have been made available to shareholders on the Company's website at http://www.vietnamholding.com/latest-publications.aspx and a summary of the report is included below.

Investor Report Summary

Vietnam News

The VNI ended November at 507.8, up ten points for the month, taking its rise to +21.4% YTD, but still well off the 533 high attained in mid-June 2013.  The Vietnam Dong was broadly unchanged in November, ending the month at 21,100 to the dollar and 28,700 to the Euro.  There was no change in indicative interest rates during the month.

At a recent public speech Vietnam's Prime Minister announced that this year's GDP growth was expected to be 5.4% which would bring the average GDP growth for the period of 2011-2013 to 5.6%. By end of 2013 Vietnam's GDP is expected to reach US$176 billion and average income per capita is expected to be US$1,960. According to the Prime Minister GDP growth forecasted for 2014 and 2015 is 5.8% and 6% respectively.

Overall inflation in November was estimated to be 0.34%, taking the YoY figure to 5.78%.  Food prices rose 0.88% in November, due in part to the heavy flooding and typhoons that north and central Vietnam experienced last month.  Inflationary forces are likely to increase in the coming two months, as the 'Tet' lunar new year holiday approaches, year-end staff bonuses are paid, and retail spending tends to rise substantially.

VNH Insights

VietNam Holding's NAV per share increased by 2.71% during the month of November, which brought the year-to-date outperformance against the USD-adjusted Vietnam Index to 17.45%, taking into consideration the adjustments of the dilution effects resulting from the warrants exercises during the year.

The Investment Team continued to deploy the additional capital raised through the new shares issued from the VNH warrants program which was finalized in October. With 96.8% of the total NAV invested in Vietnamese equities as per month-end the target investment level has been reached. Besides allocations to existing portfolio companies, a number of new investees were added to the list as well, including Hoa Phat Group (HPG) which ranked as the seventh largest investment as the end of the month.

HPG is a leading industrial manufacturer in Vietnam specializing in construction steel, industrial production and real estate. It is the second largest steelmaker in Vietnam with 13.7% market share in 2012 and 14.7% in 1H2013. HPG pursues a vertical business model to make steel from iron ore and coking coal, which helps it maintain the highest gross profit margin among other domestic peers.

VietNam Holding Asset Management Limited
Gyentsen Zatul	Telephone: [phone]
- Investor Relations
Oriel Securities Limited (Nominated Adviser and Broker)
Stewart Wallace / Neil Winward	Telephone: [phone]

 

END

 

 

MSCNKBDQABDDQBD