VietNam Holding’s 2025 scorecard – what changed and why it matters
VietNam Holding Limited has published its 2025 Annual Report. It is a meaty update that blends a tricky market backdrop, solid underlying economic momentum in Vietnam, and a portfolio that is tilted to domestic winners. The headlines: NAV fell modestly, the discount widened again post-April’s tariff shock, and the fund’s ESG credentials moved further ahead of peers.
Key numbers investors will care about
| 30 Jun 2025 | 30 Jun 2024 | |
|---|---|---|
| Total net assets | USD 117.6 million | USD 140.2 million |
| NAV per share (USD) | USD 5.004 | USD 5.137 |
| NAV per share (GBP) | 406.4p | 406.4p |
| Share price | 338.0p | 396.0p |
| Discount to NAV | 7.4% | 2.6% |
| Ongoing charges | 3.04% | 2.97% |
Since year end, the discount widened further to around 10.5% as at 26 September 2025, with an estimated NAV of 437.80p and a share price of 392.0p.
Performance in context – the index roared, the fund lagged
NAV per share fell by 2.5% over the year, while the Vietnam All Share Total Return Index rose 9.8%. The share price moved from 396.0p to 338.0p, reflecting both the NAV slip and a wider discount.
Why the gap? The manager calls out a bifurcated market: foreign investors sold over USD 2 billion of Vietnamese equities in the past year, often targeting liquid blue chips the fund holds, while a large domestic retail base crowded into a handful of index heavyweights the fund does not own. That set-up punished relative returns despite strong underlying progress in several holdings.
Redemptions and buybacks – discount control vs shrinking size
The trust’s annual redemption facility is doing its job in giving shareholders an exit at NAV and in helping control the discount. About 12% of shares were redeemed in September 2024. A further 17.9% of shares were validly tendered for the 2025 window (announced 2 September 2025, priced off 30 September 2025 NAV, with payments expected by end-October).
Alongside this, the company has run selective buybacks and, from February 2025, may hold repurchased shares in treasury. The flip side of this toolbox is a smaller fund – net assets dropped to USD 117.6 million – and ongoing charges edging up to 3.04%. If the discount tightens sustainably, the board wants to issue shares again to rebuild scale.
Portfolio positioning – banks leading, retailers rebuilding
The portfolio is focused on domestic growth themes: industrialisation, urbanisation and consumption. Banks are the largest sector at 35% of NAV (underweight the index), and several core positions did well:
- Techcombank (TCB) +42.8% during the period, now the largest position at 10.7% of NAV; expectations are building around an IPO of its brokerage arm.
- Sacombank (STB) +58%, MB Bank (MBB) +30%, VietinBank (CTG) +31.8%.
Retail remains a conviction overweight despite sector underperformance. Mobile World Group (MWG) – 8.9% of NAV – staged a strong operational comeback in 2024, with revenue of USD 5.1 billion and NPAT of USD 142.9 million as its Bach Hoa Xanh grocery chain reached profitability.
Hoa Phat Group (HPG) – 7.1% of NAV – is benefiting from infrastructure demand, with the Dung Quat 2 complex targeting full completion by end-2025 to lift crude steel capacity to 15 million tonnes per year.
The fund has little exposure to the hot-and-cold Vingroup ecosystem beyond a position in Vinhomes, by design.
Macro backdrop – tariffs, reforms and a possible market upgrade
April’s US tariff shock dented sentiment, but subsequent negotiations reduced headline rates to around 20% on most items and 40% on transhipped goods. Meanwhile, the domestic growth story has been resilient: GDP growth hit 7.52% YoY in the first half to 30 June 2025, FDI disbursements rose 8.1% to USD 11.7 billion, and public investment is accelerating.
Importantly for foreign investors, the new KRX trading system went live in May. The manager sees this as a key catalyst for Vietnam’s potential move from Frontier to Secondary Emerging Market in FTSE Russell’s framework – possibly as early as October 2025. An upgrade would be a meaningful liquidity and flows event.
ESG leadership – hard data, not just slogans
VietNam Holding leans into responsible investing, and the numbers back it up.
- PRI Transparency Report: three 5-star scores, with 92% for Policy Governance and Strategy, 93% for listed equity (active), and 100% for confidence-building measures.
- Portfolio carbon intensity: estimated Scope 1 and 2 emissions 65% below benchmark; WACI at 59.23 vs 124.32 for the VNAS.
- Avoided emissions estimated at 9,536.53 tCO₂e vs the benchmark equivalent, as at 31 December 2024.
The manager has partnered with MSCI to enhance climate analytics and TCFD alignment, and is engaging portfolio companies to measure and disclose emissions and set decarbonisation roadmaps. Six holdings are included in HOSE’s Vietnam Sustainability Index.
Risk, liquidity and governance notes
The trust is ungeared and invested entirely in listed Vietnamese equities and cash. Liquidity is a clear focus: the board notes that, under current conditions, more than 95% of the portfolio could be liquidated in under 30 days. The viability horizon is set to June 2028, with the continuation vote due at the 2028 AGM.
Ongoing charges are 3.04% using AIC methodology. No dividends were declared. The audited loss for the year was USD 2.85 million, driven by lower investment income and an unrealised hit from the market wobble.
What could move the shares next
- FTSE Russell upgrade decision – a step up to Secondary Emerging Market could be a powerful re-rating catalyst.
- Tariff clarity – resolving US trade uncertainty would likely support valuations and foreign flows.
- Discount dynamics – disciplined buybacks and the annual redemption facility have helped; sustained demand could see issuance return.
- Banking cycle – with undemanding valuations and improving credit growth, the sector can drive earnings momentum.
My take – the opportunity and the trade-off
This is an active, research-led play on Vietnam’s domestic champions with strong ESG integration. Near term, the discount of roughly 10% looks interesting, but remember the structural trade-off: the redemption facility helps control the gap to NAV yet shrinks the fund and can nudge up costs until issuance resumes.
If you buy into the Vietnam story – reform momentum, infrastructure build-out, and a potential market status upgrade – VietNam Holding is a focused way to express that view. The underperformance versus the index this year is frustrating, but the five-year record and the current positioning in banks and quality retailers suggest the ingredients are there for a catch-up when foreign flows normalise.
Bottom line: a high-conviction Vietnam trust with real ESG chops, decent liquidity, and a discount that offers some cover if you are patient. Just keep an eye on fund size, ongoing charges, and the FTSE watchlist.
