Shares in the Vietnam Holding Investment Trust have dropped back amid a bout of profit-taking in Vietnamese stocks after a rip-roaring rally from the post-Trump tariff lows.
The VN Index of Vietnamese stocks surged over 50% from lows around 1,200 in April, reaching levels above 1,750 in October and again in December.
Naturally, such a strong run-up in the index has spurred a wave of profit-taking in Vietnamese shares, resulting in a pullback in the Vietnam Holding Investment Trust, which invests exclusively in shares listed in the country.
We would argue that this correction presents an entry opportunity for investors seeking exposure to Vietnam’s longer-term growth story, which is underpinned by sustained economic growth.
Indeed, recent economic data from Vietnam has been strong and supports the trust’s investment case.
Vietnam’s manufacturing sector maintained its expansion in November, though momentum eased slightly from October’s fifteen-month peak.
The S&P Global Vietnam Manufacturing PMI registered 53.8 in November, higher than most countries in the region and outstripping most developed countries.
Output rose for the seventh straight month, supported by expanding new orders.
While severe weather conditions constrained production activity and disrupted supply chains, the broader economy continued to accelerate. GDP expanded 8.23% year-on-year in Q3 2025, the fastest pace since Q3 2022. Growth was broad-based across all sectors: industry and construction advanced 9.46%, services rose 8.56%, and agriculture grew 3.74%.
Trade remained robust despite a 20% US tariff imposed in early August. Q3 goods exports surged 18.4%, whilst imports jumped 20.2%. Final consumption gained 7.79% year-on-year, with fixed investment rising 8.97%.
Prime Minister Pham Minh Chinh projects exports will climb by more than 12% this year, citing optimism about ongoing US trade negotiations.
As noted by the trust in a recent update: “Vietnam’s structural advantages – a young workforce, strategic geography, business-friendly reforms, and sustained FDI inflows – remain intact.”
Beyond the fundamental economics driving returns of Vietnamese stocks, investors should consider Dynam Capital’s stock-picking prowess.
This is demonstrated by how the trust’s managers have adapted to the changing face of the Vietnamese economy and by their careful consideration of individual company valuations.
For example, this year the trust has sold down holdings in its largest holding, FPT, to invest in other areas it sees as better value. VNH investors did very well from its FPT investment, but a sign of a good manager is not being married to a trade and the willingness to seek value elsewhere.
Over a 15-year period, VNH has delivered a CAGR of 9.9% compared to 7.1% for the benchmark.
There is also an opportunity in the NAV discount. At 370p, Vietnam Holding trades at a 7% discount to NAV, with much of the recent decline driven by an expansion of this discount rather than a reduction in overall NAV. The NAV has actually held up well.
Vietnam Holding traded at a premium not too long ago, and the trust is committed to managing the discount through innovative redemption offerings.
From a technical perspective, the 200-day moving average at 369p appears to be a sensible support level for those interested in charting.