Vietnam Holding (LON:VNH), the closed-ended fund that invests in high-growth companies in Vietnam, is celebrating its 15th anniversary today. The London-listed investment trust, launched in 2006, has followed the Southeast Asian nation through its astonishing transformation since its inception.
The fund got off to a strong start in 2006, however, it was soon greeted by the destructive global financial crisis in 2008, which put the world economy in a stranglehold. Following the crisis, Vietnam underwent massive changes, surpassing Brazil as the world’s largest coffee exporter in 2012, followed by high levels of growth in 2013 after years of stagnation.
Vietnam has liberalised its economy over the past few decades and has recorded high economic growth in the process. With the country’s ideal location for manufacturing and established trade deals, in addition to a young and increasingly literate population, this phenomenon shows no sign of letting up. Vietnam was one of the highest growing economies in the world last year at just under 3%.
Over the past five years, the Vietnam Holding share price, now at 246.90p, has risen by 44.1%. Since its inception, 15 years ago, it has added 55.42%.
Vietnam Holding Portfolio
The fund’s portfolio is concentrated with two thirds of its holdings in its top ten companies. Fianancial services, the top sector, makes up 41.06% of the fund’s portfolio, closely followed by technology and real estate at 18.32% and 14.31%. Its weighting towards industrial goods and real estate play towards the aforementioned processes of industrialisation and urbanisation in Vietnam.
UK Investor Magazine Conference
Vietnam Holding presented at the UK Investor Magazine Virtual Conference in March.
Craig Martin, Chairman of Dynam Capital, the manager of Vietnam Holding, presented the case of investing in Vietnam and provided detailed insight into the Southeast Asian economy.