VietNam Holding - Vietnam is navigating turbulent trade war

Vietnam Holding (VNH) delivered solid net asset value (NAV) per share growth of 16.5% in 2024, ahead of the Vietnam All-Share Index (VNAS), which rose 10.2%. The fund has outperformed the market over the long term, highlighting the manager's stock selection expertise, which is supported by the fund's relatively small size, allowing for great flexibility and nimbleness. After introducing the tender offer mechanism, the discount to NAV had largely closed by late 2024. In the first quarter of 2025, the political turmoil caused by US tariff announcements weighed on valuations across emerging markets, especially exporters to the US like Vietnam (the VNAS was down by 17% in a week). We note that Vietnam has undertaken a series of steps aimed at avoiding the worst-case scenario, and we believe VNH's agile investment approach may allow it to capture opportunities as they arise. At the same time, VNH's shares are currently available at a 7% discount, despite the already depressed NAV.

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