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LONDON - Vietnam Holding Limited (VNH), an investment company managed by Dynam Capital Limited, has released its monthly investor report, highlighting a strong economic performance for Vietnam in the first quarter of 2025. Despite the global market volatility triggered by new tariff announcements from former U.S. President Trump, Vietnam’s GDP growth rate hit 6.93%, the highest for a first quarter in the five-year period starting in 2020.
The Vietnamese government has been proactive in the face of these challenges, engaging in diplomatic efforts to negotiate a stronger bilateral trade agreement with the United States. Trade envoys were sent to Washington, with potential deals worth US$36 billion in agriculture, aircraft, and automobiles on the table.
Vietnam’s manufacturing Purchasing Managers’ Index (PMI) also rose to 50.5 in March, signaling continued economic expansion and keeping the country on track to meet its ambitious 8% GDP growth target for 2025. The government is pushing forward with policies to attract high-value manufacturing and enhance trade cooperation with regions such as India, the Middle East, Latin America, Central Asia, and Eastern Europe.
In the stock market, Vietnam saw moderate gains in March, bolstered by a booming tourism sector. VNH has adjusted its portfolio in response to tariff risks, increasing cash positions and investing more in retail, IT, and bank stocks, while reducing exposure to logistics. The portfolio is now strategically overweight in domestically oriented companies.
The report also notes that Vietnam’s equity markets have rebounded strongly and are trading at valuations not seen in two decades. VNH has maintained its outperformance compared to the Vietnam All Share Index (VNAS) over fifteen years. The recent underperformance is attributed to a bifurcated market, with foreign investors net-selling Vietnamese equities for over a year, impacting valuations. Meanwhile, domestic retail investors have been favoring certain key index stocks.
VNH’s portfolio boasts a single-digit price-to-earnings (P/E) ratio with an expected earnings per share growth of 20%. The investment manager expresses confidence in their stock picking and portfolio strategy, anticipating a robust performance once market clarity improves.
The company’s commitment to shareholder communication was reinforced with the publication of interim results in March and a recent webinar hosted on the London Stock Exchange (LON:LSEG) to discuss tariff responses from both VNH and the Vietnamese government.
This news article is based on a press release statement from VietNam Holding Limited.
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