Vietnam Holding saw its share price soar by 60% this year
Vietnam Holding (LON:VNH) released a statement on Monday that said Vietnam was the best performing stock market in the world during May, while the investment firm’s performance surpassed the national benchmark.
The trust’s largest holding, FPT, saw its share price soar by 60% during this year, according to a report issued this month by Dynam Capital, the manager of the trust.
Dynam said that its recent success in Vietnam can be put down to the spread of the internet, which reached 69% of the population in 2020, which rose to 73% in 2021.
“For FPT, fast internet means customers can stream content over their rapidly growing Pay TV business …[and] contribute greatly to economic growth,” Dynam said.
“Considering Vietnam’s software engineers on average cost one third of the level of those in India and China, the opportunity for a Vietnamese company, such as FPT, to be internationally competitive is also immense. FPT already serves many Japanese and US companies, which are trying to move their activities to the cloud and upgrade their technologies to adapt to new customer usage patterns.”
The digitisation of the country has benefitted other industries too, as banks propped up the country’s economy as they have been more able to connect with customers online.
Dynam said that banks in its portfolio have risen in value following strategic decisions by the management team.
“Other drivers in the digitalisation momentum currently taking place in Vietnam include education and government regulations… The government is also pushing hard for digital technologies as a way to scale Vietnam’s development as a modernising industrial nation and is planning to promote e-payment and e-government.”
“Soft infrastructure is as important as hard infrastructure, and both can have a multiplier effect on economic growth, in our view.”
“Digitalisation is helping Vietnam stay on course to reach its 30-year track record of 6.5% growth.”
Vietnam Holding presented at the UK Investor Magazine Virtual Conference on 23 March.
 released a statement on Monday that said Vietnam was the best performing stock market in the world during May.){kind=link}