VietNam Holding’s NAV up 10.8% as discount narrows – what’s working and what to watch
VietNam Holding Limited has posted a solid interim set of numbers for the six months to 31 December 2025. Net Asset Value (NAV) per share rose 10.8%, the share price climbed 12.6%, and the discount tightened from 7.4% to 5.9%. In a choppy year for Emerging Markets, that is a decent outcome, underpinned by resilient Vietnamese macro data and stock-specific wins.
The period also saw the second annual redemption window, with 18% of shares redeemed. That is a big ask for any closed-ended fund, yet management handled it “with little distortion” to the portfolio and kept the discount tight. The balance of performance, discipline and liquidity management is the crux here.
Key interim numbers at a glance
| Metric | Figure | Why it matters |
|---|---|---|
| NAV per share change (H1 FY26) | +10.8% | Underlying portfolio progress, net of fees and expenses. |
| Share price change (H1 FY26) | +12.6% | Shareholders did better than NAV as the discount narrowed. |
| Discount to NAV | 5.9% at 31 Dec 2025 (7.4% at 30 Jun 2025) | Narrower discount reflects demand and effective capital management. |
| Total comprehensive income | USD 13,580,708 | Driven by USD 14,683,816 net gains on investments. |
| Basic EPS | USD 0.62 | Per-share profit for the period. |
| Net assets | USD 106,434,073 | Fund size after redemptions and market moves. |
| Cash and cash equivalents | USD 5,749,567 | Liquidity to run the strategy and manage buybacks/redemptions. |
| Shares outstanding | 19,196,077 | Down from 23,505,035 after 18% annual redemptions. |
| Buybacks and redemptions | USD 523,749 buybacks; USD 24,245,688 redemptions | Planned tools to keep the discount in check and offer liquidity. |
Vietnam’s macro backdrop: resilient growth and reform momentum
Vietnam delivered 8% GDP growth in 2025 – the highest in Southeast Asia – despite tariff turbulence earlier in the year. The widely flagged import duties threat was negotiated down to 20% by July, and the country still posted a USD 20 billion trade surplus. Purchasing Managers’ Index (PMI) sat at 53 in December, exports were up 17% for the year, and FDI reached a five-year high of USD 27.6 billion. Public investment accelerated to USD 30.5 billion (83.7% of target).
Looking ahead, the government has set a 10% growth target for 2026. Inflation remains contained at 3.3%, and Vietnam has received notice of an FTSE Russell upgrade to Secondary Emerging Market status, with reclassification slated for 21 September 2026. That could be a meaningful catalyst for flows and market infrastructure over the medium term.
Risks are not absent. The post-period escalation in Iran has pushed up oil, and as a net energy importer, Vietnam may see some margin pressure and softer GDP if prices stay elevated. Management views these effects as cyclical rather than structural.
Portfolio drivers: banks, consumers and stock picking over index-chasing
Performance was stock-specific rather than macro-driven. Notable contributors included Vinhomes (VHM) up 20.9% on new launches and infrastructure ties, and Mobile World Group (MWG) up 11% as retail sales rebounded 9.8% in December. Banks did their bit too, with MB Bank up 9.1% and VietinBank up 5.8%, reflecting a strong system-wide year for credit growth at 19%.
The period was also a reminder of market concentration. Vingroup (VIC) surged 254.8% and, given its weight, drove a large chunk of index returns. VNH kept a measured position in the Vincom group, prioritising clearer earnings visibility and valuation discipline. That stance may have modestly held back relative returns in the short run, but it fits the fund’s stated playbook of sustainable, risk-adjusted returns rather than momentum-chasing.
On the flip side, several mid-sized property developers lagged as liquidity crowded into mega-caps. Management expects Vietnam’s residential market to broaden in 2026, particularly in affordable segments, which could ease that headwind.
Positioning, valuation and breadth
- Large-cap tilt: 75.6% allocated to companies above USD 1 billion.
- Concentration: 25 holdings, with top ten around 64% of NAV; MWG is 10% of the portfolio.
- Valuation: portfolio on 9.5x forward earnings, with estimated 18% EPS growth in 2026.
- Full-year context: NAV per share rose 5.9% in 2025; banks, MWG and Hoa Phat Group contributed; mid-cap property names NLG, KDH and HDG detracted.
Discount control: redemptions and buybacks doing their job
Two levers are in play: the annual redemption facility and ongoing market buybacks. In this window, 18% of shares were redeemed at NAV and cancelled. Separately, the fund repurchased USD 523,749 of shares in the market. Combined, these actions tightened the discount to 5.9% despite foreign outflows from Vietnam and sector-wide volatility in UK-listed investment trusts.
Jargon watch: NAV is the per-share value of the portfolio after fees. The discount is the gap between the share price and NAV. Buybacks and redemptions reduce the share count, which can support the share price and the per-share economics for remaining holders.
Costs, governance and ESG
Operating expenses were USD 2,016,810, including investment management fees of USD 1,058,751. No changes were made to the investment policy. ESG integration remains embedded, with ongoing engagement on governance, disclosure and climate readiness. In a market still deepening its capital markets, those stewardship efforts can be a differentiator over time.
My take: balanced progress with clear catalysts, but stay mindful of concentration risk
Positives: strong interim NAV advance, a narrower discount, bank and consumer names doing the heavy lifting, and a credible, disciplined stance on valuation. Liquidity management through a chunky 18% redemption while keeping the portfolio on the front foot is also noteworthy. The macro tone is supportive – 8% GDP in 2025, exports humming, and meaningful reform under the Doi Moi 2.0 umbrella.
Watch-outs: Vietnam’s index concentration can skew short-term comparisons, especially when a mega-cap surges. Foreign investors were net sellers during the period, and higher oil prices could pinch margins if sustained. The fund is smaller post-redemptions, which may help the discount but also reduces scale.
What matters next for shareholders
- FTSE Russell reclassification – 21 September 2026 is flagged as a potential inflection point for flows and liquidity.
- Market breadth – signs that property and mid-caps re-engage would help relative performance versus a mega-cap led tape.
- Energy prices – the Iran-related shock bears watching for its impact on inflation and corporate margins.
- Discount discipline – continued use of the redemption facility and selective buybacks should underpin the rating.
- Earnings delivery – management points to around 18% EPS growth in 2026 across holdings; hitting that matters more than headlines.
Bottom line
This is a steady, well-executed half for VietNam Holding. Stock selection, sensible risk control and proactive discount management are doing the work. With valuations undemanding at 9.5x forward earnings and big-picture catalysts on the horizon, the set-up remains attractive – as long as you accept the usual Emerging Market caveats and Vietnam’s tendency for index concentration. For patient investors, that combination can be an opportunity, not a threat.
