VinaCapital Vietnam Opportunity Fund Reports FY2025 Results with NAV Decline and Board Changes

FY2025 at a glance: a tough year, a better start to FY2026

VinaCapital Vietnam Opportunity Fund (VOF) has released audited results for the year to 30 June 2025. A tariff shock in April and weakness in a handful of holdings kept returns down for the period, but the Board reports a strong post year-end rebound as domestic confidence returned.

• NAV total return (USD) -2.2%; share price total return (USD) -5.3%.
• NAV per share fell 4.0% to USD7.13; share price ended the year at USD5.77.
• Dividends maintained at 14.5 US cents for the year, with 7.25 US cents declared on 23 October 2025 (payable on or around 3 December 2025).
• Big buyback: 16.8 million shares repurchased for USD96.78 million, adding about 21.3 US cents per share to NAV.
• Board changes: Huw Evans to retire at the 3 December 2025 AGM; Kathryn Matthews to become Chair; Charlotta Ginman to chair the Audit and Management Engagement Committees.
• Revolving credit facility increased to USD60 million and extended to 30 May 2027.
• Q1 FY2026 update: the Chairman cites a 12.4% NAV rise and 13.3% share price gain in USD terms in the first three months after year-end.

Key numbers shareholders care about

Metric	FY2025	FY2024
NAV per share (USD)	USD7.13	USD7.43
NAV per share (GBP)	£5.20	£5.88
Share price (USD)	USD5.77	USD6.26
Share price (GBP)	£4.21	£4.96
NAV total return (USD)	-2.2%	7.8%
Share price total return (USD)	-5.3%	17.6%
Total dividend per share (US cents)	14.5	14.25
Cash and cash equivalents	USD48.7 million	USD36.8 million
Total shareholders’ equity	USD964.2 million	USD1,129.2 million

Performance context: why VOF lagged the VN Index

The VN Index delivered a 9.8% USD total return in the year, driven mainly by a narrow group of large caps. VOF didn’t chase those names on valuation grounds, so it missed that concentrated surge. The April announcement of US tariffs on imports from Vietnam sparked a sharp correction mid-year. While an agreement was announced on 2 July 2025 with an average headline tariff of 20%, management expects the ultimate impact to be “fairly muted”.

On the private markets side, there was a net write-down of USD6.8 million at year-end, with IN Holdings reduced by USD23.0 million, partly offset by increases at NovaGroup (+USD10.6 million) and DXS (+USD4.1 million). These adjustments, plus public market swings, contributed to a FY2025 loss of USD47.6 million.

Where returns came from: winners, laggards and position sizing

• Big positive: Vinhomes (VHM) returned 82.2% and contributed 2.4% to performance as sentiment improved in real estate and reforms progressed.
• Solid contributors: Asia Commercial Bank (ACB) +6.9%; VPB +9.2%; MB Bank (MBB) +6.7%; Thu Cuc Healthcare +8.5%.
• Drags: Khang Dien Homes (KDH) -8.4%; Hoa Phat Group (HPG) -6.4%; FPT -5.3%; PNJ -13.1%.

The top holdings at year-end included ACB (11.5% of NAV), KDH (9.7%), HPG (8.1%) and FPT (7.1%). Notably, VHM rose into the top ten on strong price performance during the year.

Active moves: deploying into banks and consumption, exiting legacy assets

VOF put USD183 million to work, leaning into Vietnam’s domestic demand story:

• Consumer: Mobile World Group (MWG) for grocery expansion; Kido Group (KDC), alongside its acquisition of Tho Phat.
• Financials: New or larger positions in MB Bank (MBB), VietinBank (CTG), VIB and SSI Securities.

Realisations unlocked capital:

• Hung Vuong Plaza fully exited after a 20-year hold, delivering a 12.3% USD IRR and over 4.8x money multiple.
• Quang Ngai Sugar (QNS) sold to a strategic investor (USD IRR 8.1%, 1.7x money multiple).
• Private equity exit from Tam Tri Medical to a regional financial investor.

Income, buybacks and balance sheet discipline

The Board is sticking with its policy to pay dividends of roughly 1% of NAV twice yearly. After March’s 7.25 US cents, a further 7.25 US cents was declared on 23 October 2025, payable on or around 3 December 2025.

Buybacks were used aggressively to manage the discount. Repurchasing 16.8 million shares (11.05% of the opening share count) at attractive discounts was accretive, adding about 21.3 US cents per share to NAV. Cash closed at USD48.7 million, and the revolving credit facility was increased to USD60 million and extended to 30 May 2027, providing flexible liquidity for private deals and settlements.

Macro backdrop: tariffs, reforms and an upgrade catalyst

Vietnam’s economy grew 7.1% in 2024 (GSO). The April 2025 US tariff announcement caused a wobble, but an agreement followed in July. Management’s view: Vietnam’s competitive advantages – workforce quality, costs and location – should remain intact if tariffs aren’t more than 10% above regional peers.

Domestically, the government plans nearly 40% higher infrastructure spending in 2025, is working to unfreeze real estate markets, and set out Resolution 68 to double the number of private firms to 2 million and build national champions by 2030. FTSE Russell has confirmed Vietnam will be classified as an Emerging Market from September 2026 (subject to final review), a potential medium-term flow catalyst.

Governance and Board changes you should note

• Chairman Huw Evans will retire at the AGM on 3 December 2025. Kathryn Matthews will become Chair.
• Charlotta Ginman, appointed in January 2025, will chair the Audit Committee and Management Engagement Committee from the AGM.
• Administrator and Company Secretary moving from Aztec to NSM Funds Limited from close of business on 4 November 2025; the AGM will be held at NSM’s offices.

What I think this means for investors

• Short-term: FY2025 was a bump in the road. A tariff scare, a narrow index rally and a couple of private asset adjustments did the damage. But the post year-end update shows renewed momentum – that matters.
• Medium-term: the strategy remains clear – use scale and on-the-ground networks to negotiate private terms, back domestic demand (banks, consumer, real estate) and recycle capital from legacy assets. The FTSE Russell upgrade and policy push at home are supportive tailwinds.
• Discount management: this Board is using buybacks proactively, and the 2025 programme was materially accretive. If sentiment keeps improving, that could help narrow the discount, though there are no guarantees.
• Risks: frontier market volatility, private asset valuation risk (evidenced by IN Holdings), and any unfriendly detail that might emerge from the US tariff regime. The revolving credit facility helps with liquidity, but private market execution always needs patience.

Overall, this reads as a frustrating year that ended better than it began. With dividends maintained, buybacks adding value, and a double-digit NAV bounce early in FY2026, VOF enters the new year with a fair wind. As ever, sizing and patience are key in Vietnam – but the structural story remains intact.

Useful link

For monthly factsheets and updates, visit the Company’s site: vof.vinacapital.com.