VietNam Holding Limited · LSE:VNH
VietNam — VietNam Holding Webinar 8 June 2022
22 slides from VietNam's conference presentation, Jun 8, 2022
Slide 1: The Webinar will start shortly
The Webinar will start shortly.. 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Dynam Capital, Ltd. ("Dynam"). This presentation is for information and discussion purposes only and should not be considered to be an offer or solicitation of an offer to buy or sell shares in the Vietnam Holding Limited (the ‘Company’), nor an offe
Slide 3: Contents
Contents 1. Introduction 2. Vietnam’s Macroeconomy and Equity Market 3. A sustainable portfolio in Vietnam 4. Gemadept: logistics champion 5. Summary and Q&A 3
Slide 4: Dynam Capital
Dynam Capital Vietnam focused fund manager Closed-end fund Open-end fund Partner owned Manager +16.0%* p.a. over 10 years listed on LSE (c.$30m) with Main Market ($140m) locally based team Vietnam All Share +12.3% ** p.a. Nimble stock selection, actively managed, high-conviction portfolio with integ
Slide 5: Made in Vietnam
Made in Vietnam Asia’s Emerging Champion Population 98.5mn 32.5 years 85% Population Median age Ethnic Kinh 15th in the world Youngest in ASEAN Stable socio-political environment 98% >77% 37% Literacy rate Internet penetration Urbanization 2nd highest among top 30% per annum growth in Japan rate 10
Slide 6: Vietnam's Macroeconomy and Equity Market
1. Introduction 2. Vietnam’s Macroeconomy and Equity Market 3. A sustainable portfolio in Vietnam 4. Gemadept: logistics champion 5. Summary and Q&A 6
Slide 7: Vietnam Macro: One of the Highest GDP Growth Countries
Vietnam Macro One of the Highest GDP Growth Countries in the World High and stable GDP growth over last 30 years GDP per capita accelerating (USD) 3000% 10% GDP per capita growth 9% 2500% 8% Malaysia Philippines 7% 2000% Thailand Vietnam 6% 1500% 5% 4% 1000% 3% 500% 2% 1% 0% 2008 1990 1991 1992 1993
Slide 8: Favorable Demographics Driving the Opportunities
Vietnam Favorable Demographics Driving the Opportunities Among highest Employment to Population Ratio (%) in the world 80% 76% 65% • Young and large population 58% 58% 60% 54% • Industrious workforce 40% • Manufacturing labor cost is just about half of China and two- 20% thirds of Mexico 0% Vietnam
Slide 9: Supportive Policies for A More Open Economy
Vietnam Supportive Policies for A More Open Economy Increasing foreign trade thanks to FTAs 2018 2022E • Total trade as of percentage of GDP doubled to >200% since 2007 2014 CPTPP (previously Join WTO Vietnam-Chile FTA RCEP 2000 TPP) • Newly signed CPTPP (Comprehensive and Progressive Agreement of T
Slide 10: Macro Review: Rapidly Recovering After Covid-19
Macro Review Rapidly Recovering After Covid-19 The manufacturing sector continued to bounce back in Q2-2022 Trade keeps its growth momentum 30% 65 Import Growth (%) 26.5% Export Growth (%) 25% 60 US, 57.5 Vietnam, 54.7 55 20% 19.0% EU, 54.4 Japan, 53.3 16.5% 15.7% Korea, 52.1 50 15% China, 49.6 45 1
Slide 11: Strong Macroeconomic Conditions Supporting Corporate Earnings Growth
Vietnam Strong Macroeconomic Conditions Supporting Corporate Earnings Growth Record high FX reserve (USD bn) Healthy current account 120 4.0 5 16 USD bn Current Account Balance (LHS) 8% 4.3 13.9 FX Reserves (LHS) Current Account as % of GDP (RHS) 12.8 100 3.7 110 12 Foreign reserves in months of imp
Slide 12: Vietnam Equity Market: Rise of the Retail Investor
Vietnam Equity Market Rise of the Retail Investor Market capitalization (USD bn) Liquidity expanding rapidly 1,613 1,637 1,710 US$ mn 400 1,800 1800 2000 Total Market Cap (LHS) 1,545 1,634 350 Number of stocks (RHS) 1,600 1600 Liquidity (RHS) 1800 338 1600 1,400 1400 VNIndex (LHS) 300 1,418 290 1,20
Slide 13: A sustainable portfolio in Vietnam
1. Introduction 2. Vietnam’s Macroeconomy and Equity Market 3. A sustainable portfolio in Vietnam 4. Gemadept: logistics champion 5. Summary and Q&A 13
Slide 14: Sustainable Portfolio: Investment Philosophy and Approach
Sustainable Portfolio Investment Philosophy and Approach • Combining top-down and bottom-up strategies for a balanced portfolio • Top-down: Portfolio structuring process integrating macroeconomic Top down – Bottom up forecasts into asset allocation • Bottom-up: Extensive analysis and disciplined inv
Slide 15: Leading edge of responsible investing in Vietnam
Dynam Capital Leading edge of responsible investing in Vietnam Responsible investing drives sustainable growth and manages downside risk Integrated into established investment process: • Initial Screening with Dynam’s ESG exclusion list • Proprietary ESG scoring matrix and database • Detailed ESG du
Slide 16: VNH Portfolio
VNH Portfolio High Conviction/Concentrated Portfolio Across Key Themes of Domestic Consumption, Urbanization and Industrialization Top Ten Holdings Sector Allocation Company % NAV Banks 20.5% FPT 11.5% Industrial Goods and Services 17.9% Mobile World 8.7% Gemadept 8.5% Retail 16.1% Phu Nhuan Jewelry
Slide 17: Strong portfolio performance
Strong portfolio performance 10-year NAV per Share Performance vs. VNAS Index (May 2012 – May 2022) 350% VNH's NAV per share (USD) VNIndex (USD) 300% Vietnam All Share Index (USD) MSCI EM 250% MSCI FM 200% 150% 100% 50% 0% -50% May-12 May-13 May-14 May-15 May-16 May-17 May-18 May-19 May-20 May-21 Ma
Slide 18: Gemadept: logistics champion
1. Introduction 2. Vietnam’s Macroeconomy and Equity Market 3. A sustainable portfolio in Vietnam 4. Gemadept: logistics champion 5. Summary and Q&A 18
Slide 19: Gemadept Corporation: Logistics Champion Investment Case
Gemadept Corporation(GMD: HOSE) Logistics Champion Investment Case Investment summary Stock information • Gemalink, a deep-water port in the South of Vietnam, commenced operations in January 2021 Date of investment Aug-19 Market cap (USD mn) 725 • Gemadept (GMD) is now the second biggest seaport ope
Slide 20: Summary and Q&A
1. Introduction 2. Vietnam’s Macroeconomy and Equity Market 3. A sustainable portfolio in Vietnam 4. Gemadept: logistics champion 5. Summary and Q&A 20
Slide 21: Why Vietnam and why now?
Why Vietnam and why now? Expanding capital markets, increasing liquidity, inflection point in economic growth 120% VNIndex MSCI China Index • Top Performing Stock Market Globally: Vietnam’s stock 100% MSCI India Index market has outperformed China and India over the last five MSCI Emerging market ye
Slide 22: Contact us
Contact us Craig Martin Vu Quang Thinh Chairman CIO craig@dynamcapital.com thinh.vu@dynamcapital.com www.dynamcapital.com
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