VietNam Holding Limited · LSE:VNH
VietNam — Vietnam: The Next Five Years webinar (February 2021)
26 slides from VietNam's conference presentation, Feb 26, 2021
Slide 1: Vietnam: The Next Five Years
Vietnam: The Next Five Years February 2021 The webinar will start shortly…
Slide 2: Vietnam Holding Ltd Overview
Vietnam Holding Ltd (LSE: VNH) Overview NAV c. £98.6m Closed-end fund Partner owned +10.4%* p.a. over 10 years £82.4m listed on LSE Manager with Market cap Main Market locally based team Vietnam All Share +7.4% ** p.a. Nimble stock selection, actively managed, high-conviction portfolio with integrat
Slide 3: Vietnam Country Profile
Vietnam Country Profile Population 97.6mn 32.5 years 85% Population Median age Ethnic Kinh 15th in the world Youngest in ASEAN Stable socio-political environment 98% >65% 36% Literacy rate Internet penetration Urbanization 2nd highest among top High growth in digital Japan 10 investible FM countries
Slide 4: Content: Vietnam: The Next Five Years
Content Vietnam: The Next Five Years 1. Vietnam opportunity: SUSTAINABLE GROWTH 2. Domestic consumption: SIZEABLE AND FAST-GROWING MARKET 3. Participation in global value chain: INCREASING VALUE-ADDED 4. Foundation for the next growth stage: ACCELERATING PUBLIC INVESTMENT 5. Digital exchange: FAVOUR
Slide 5: Vietnam Opportunity: The Virtuous Cycle
Vietnam Opportunity: The Virtuous Cycle 35 years ago, Vietnam implemented far-reaching policies that structurally transformed the economy and society and paved the way for the development of the country’s financial markets. Creating the Virtuous Cycle One-Party Political Stability/Central Planning T
Slide 6: Pandemic Winner becomes the growth engine of ASEAN
Vietnam Opportunity: Pandemic Winner becomes the growth engine of ASEAN 30 years of high growth in GDP Winner among 5 ASEAN countries in the year of the pandemic GDP growth of Vietnam (USDbn) GDP Growth (%) of five ASEAN countries in 2020 600 Vietnam 2.9% 500 -6.6% Thailand 400 -3.5% Singapore 300 5
Slide 7: Content: Vietnam: The Next Five Years
Content Vietnam: The Next Five Years 1. Vietnam opportunity: SUSTAINABLE GROWTH 2. Domestic consumption: SIZEABLE AND FAST-GROWING MARKET 3. Participation in global value chain: INCREASING VALUE-ADDED 4. Foundation for the next growth stage: ACCELERATING PUBLIC INVESTMENT 5. Digital exchange: FAVOUR
Slide 8: Domestic consumption: emerging consumer market
Domestic consumption An emerging consumer market with increasing disposable incomes Auto sales in Vietnam over the years (units) 300,000 250,000 • Car ownership doubled over last 5 years - only 23 cars per 200,000 capita compared to 205 across ASEAN and 200 in China, so 150,000 much more to come (ho
Slide 9: Low urbanization with high potential for growth
Domestic Consumption Low urbanization with high potential for growth 36% urbanization rate (Western Europe after WWII) Vietnam retail sales (USD bn) Urbanization 213 rate (2019) 90% 200 189 80% 173 11 % CAGR South Korea 160 155 70% 144 138 60% Vietnam (2030) China 124 120 112 50% Thailand 95 40% 80
Slide 10: Content: Vietnam: The Next Five Years
Content Vietnam: The Next Five Years 1. Vietnam opportunity: SUSTAINABLE GROWTH 2. Domestic consumption: SIZEABLE AND FAST-GROWING MARKET 3. Participation in global value chain: INCREASING VALUE-ADDED 4. Foundation for the next growth stage: ACCELERATING PUBLIC INVESTMENT 5. Digital exchange: FAVOUR
Slide 11: International trade
International trade Increasingly an important part of the global supply chain Increasing market share in global market Vietnam’s exports to the US market (USDbn) Vietnam’s market share of global exports 1.6% 90 83 1.4% 80 69 70 1.2% 60 1.0% 51 50 0.8% 42 40 38 0.6% 34 30 0.4% 20 13 0.2% 10 0.0% 1 20
Slide 12: Participation in the global value chain
Participation in the global value chain Increasingly value-added exports Vietnam’s value-added exports (USD bn) 80 69 70 • Vietnam’s value-added exports increased 17 times over last 30 61 60 54 54 years. 50 40 • Change from reliance on exporting agricultural products (rice, 30 30 25 coffee and fruit
Slide 13: Attracting foreign investment in technology and energy
Participation in the global value chain Attracting foreign investment in technology manufacturing and lower carbon energy Strong and sustainable influx of FDI (USD bn) Green Energy $10 bn (MOU), 40 38.0 Denmark Registered FDI Disbursed FDI 35.9 35.5 35 Green Energy $2.8 bn, US 30 28.5 25 24.4 21.7 2
Slide 14: Content: Vietnam: The Next Five Years
Content Vietnam: The Next Five Years 1. Vietnam opportunity: SUSTAINABLE GROWTH 2. Domestic consumption: SIZEABLE AND FAST-GROWING MARKET 3. Participation in global value chain: INCREASING VALUE-ADDED 4. Foundation for the next growth stage: ACCELERATING PUBLIC INVESTMENT 5. Digital exchange: FAVOUR
Slide 15: Accelerating Public Investment
Accelerating Public investment Public Investment Disbursement ($bn) 2021-2025 120 2016-2020 73.7 • Over the next five years, Vietnam plans to mobilize $120bn in public investment projects. • New Law on Public Investment (2019) to 2011-2015 47.6 encourage private investors to join in via Public- Priv
Slide 16: Transportation infrastructure projects needed for long-term growth
Accelerating Public Investment Transportation infrastructure projects needed to maintain long-term growth Long Thanh Airport Stage 1 Metro Ha Noi Line 5 Investment: $4.7 bn Investment: $2.8 bn Completion: 2025 Completion: 2025 North – South Expressway Metro Ho Chi Minh Line 1 Investment: $13.4 bn In
Slide 17: Content: Vietnam: The Next Five Years
Content Vietnam: The Next Five Years 1. Vietnam opportunity: SUSTAINABLE GROWTH 2. Domestic consumption: SIZEABLE AND FAST-GROWING MARKET 3. Participation in global value chain: INCREASING VALUE-ADDED 4. Foundation for the next growth stage: ACCELERATING PUBLIC INVESTMENT 5. Digital exchange: FAVOUR
Slide 18: Transformation to a Digital Economy
Transformation to a Digital Economy Young and dynamic population enabled by digital transformation Vietnam digital economy 2019-2025 ($bn) >60% 45 $43bn Internet penetration 4 40 35 7 1,000,000 Employees in IT 30 +3.3x 9 25 80,000 IT graduates per year 20 $13bn 15 30,000 1 3 23 10 Businesses in the
Slide 19: Content: Vietnam: The Next Five Years
Content Vietnam: The Next Five Years 1. Vietnam opportunity: SUSTAINABLE GROWTH 2. Domestic consumption: SIZABLE AND FAST-GROWING MARKET 3. Participation in global value chain: INCREASING VALUE-ADDED 4. Foundation for the next growth stage: ACCELERATING PUBLIC INVESTMENT 5. Digital exchange: FAVOURA
Slide 20: Vietnam Equity Market: Healthy Market Development
Vietnam Equity Market Healthy Market Development Market capitalization (USD bn) Equity market liquidity when compared to MSCI EMs (USD mn) 1,613 1,637 12,000 1,800 Total Market Cap (LHS) 1,545 229 210 1,418 1,600 Number of stocks (RHS) 10,000 180 191 1,400 172 8,000 150 1,200 1,015 155 1,000 6,000 1
Slide 21: Investment Approach and Themes
Investment Approach and themes Growth at A Top-down and bottom-up Reasonable Price investment approach (GARP) Key themes Industrialization Consumption Urbanization Financials International trade Retail Real-Estate Banks Logistics FMCG Clean energy and Financial services clean water Infrastructure Do
Slide 22: VNH Portfolio: High Conviction/Concentrated Portfolio
VNH Portfolio High Conviction/Concentrated Portfolio Across the Key Themes Top Ten Holdings Sector Allocation Company % NAV Banks 25% FPT 9.9% Industrial Goods & Services 23% Hoa Phat Group 8.4% Real Estate 16% VietinBank 7.8% Telecommunications 10% Vinhomes 7.1% Retail 9% VP Bank 5.7% Food & Bevera
Slide 23: VNH outperforming the Vietnam Index
VNH Portfolio A proxy for the growth of Vietnam VNH outperforming the Vietnam Index Fiscal YTD Inception Feb 2021 YTD 2021 (30 Jun 2020 - (30 Jun 2006 - 19 Feb 2021) 19 Feb 2021) VNH NAV/Share 11.61% 9.65% 52.08% 82.72% VN-Index (USD) 11.23% 6.70% 43.39% 58.21% Source: Dynam Capital, Bloomberg; Data
Slide 24: VNH liquidity and performance
LSE: VNH Discount narrowing, share price increasing, liquidity increasing VNH liquidity and performance Liquidity VNH NAV per share (GBP) VNH share price (GBP) 3.0 2,500,000 2.6 2,000,000 2.2 1,500,000 1.8 1,000,000 1.4 500,000 1.0 0 1 1 21 20 20 20 20 20 20 20 20 20 20 20 20 20 0 0 2 2 -2 -2 b- n-
Slide 25: Disclaimer
Disclaimer This presentation includes information on Vietnam Holding Limited (the "Company") and 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 sel
Slide 26: Contact us
Contact us www.vietnamholding.com Craig Martin Vu Quang Thinh Chairman CIO craig@dynamcapital.com thinh.vu@dynamcapital.com www.dynamcapital.com 26
Vietnam Holding — Vietnam: The Next Five Years webinar (February 2021) on 6ix