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HANOI - Vietnam has demonstrated economic resilience amid global geopolitical tensions, maintaining stability and achieving a trade surplus in April 2025, according to a monthly investor report by Dynam Capital Limited, the investment manager for VietNam Holding Limited (VNH). The country’s exports and imports for the first four months of the year increased by 13% and 18.6% year-on-year, respectively, resulting in a trade surplus of $3.8 billion.
Despite a sharp 17% drop in the stock market following tariff announcements by President Trump, Vietnam’s market began to recover towards the end of April and into early May. This rebound was supported by strong banking earnings and positive developments during the annual general meeting (AGM) season. Liquidity in the market also improved, with trading volumes exceeding $1 billion per day.
Vietnam’s diverse export base, which includes textiles, electronics, and agricultural products, along with a rapidly expanding services sector, has contributed to its economic stability. The country has also seen a 39.9% increase in registered foreign direct investment (FDI) for the period, totaling $13.8 billion, bolstering its position as a favorable location for multinational corporations looking to diversify their supply chains.
VNH’s fund performance reflects Vietnam’s economic narrative, with an 8% increase as of May 14, despite the April downturn. Over a five-year period, the fund has outperformed the Vietnam All Share Index (VNAS) by approximately 6% on a compound basis, after accounting for fees and foreign exchange impacts.
The investment strategy of VNH remains focused on long-term growth themes such as sustainability, logistics, and consumption, aligning with Vietnam’s urbanization and expanding middle class. The fund’s philosophy incorporates environmental, social, and governance (ESG) factors, which are seen as crucial for identifying strong, forward-thinking businesses and creating shareholder value, particularly in the small and mid-cap sectors.
Additionally, VNH and Dynam have supported the third annual Vietnam ESG Investor Conference, emphasizing the importance of tracking carbon footprints and adhering to best practices, especially as Vietnam aims to strengthen exports to the European Union.
Despite current global uncertainties, VNH maintains a positive outlook for Vietnam’s economy for the remainder of 2025, citing the country’s export dynamism, domestic consumption, and investor-friendly policies as factors that will help it navigate short-term volatility while maintaining long-term growth. The report is based on a press release statement from Dynam Capital Limited.
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