The Vietnam Holding Investment Trust has had a tremendous 2023 as Asian markets recovered from the pandemic and Vietnam continued to grow as an economy.
Despite this year’s rally, Vietnam Holding still presents a solid opportunity for investors seeking to gain exposure to one of South-East Asia’s fastest-growing economies.
Trading at 308p Vietnam Holding has a discount of 14% and represents great value for investors seeking to buy into Vietnam’s future growth story.
The Vietnam Holding Trust invests in high-growth Vietnamese-listed equities and the portfolio is weighted towards companies that both benefit and facilitate Vietnamese growth.
Banks make up around 29% of the portfolio while Telecommunications accounts for 15%. These two sectors naturally enjoy enhanced economic activity and are crucial for ensuring the wider Vietnam growth story.
One of the big themes for the trust is the digitisation of Vietnam. Banks and Telecoms are at the forefront of the drive to boost Vietnam’s adoption of technologies and improve efficiencies.
In addition to technological adoption, manufacturing is a major factor in Vietnam’s growth trajectory and is attracting overseas interest and capital.
Manufacturing and exports are integral to wider economic expansion and are making an attractive investment destination. Vietnam’s government is targeting GDP growth of 6% this year as exports start to pick up after a period of decline.
There is a significant opportunity in the Vietnamese manufacturing sector as multinationals increasingly choose Vietnam over China. Indeed, some Chinese companies are even choosing Vietnam for major plants and facilities to avoid the tension between the United States and China.
Although this foreign investment is targeted at manufacturing, the benefits will ripple through the economy and play into Vietnam Holding’s investment thesis.
