Title: URL Source: https://is.gd/ht4e6h Published Time: Thu, 08 May 2025 14:08:42 GMT Markdown Content: VinaCapital Vietnam Opportunity Fund (VOF) Monthly Report - March 2025 GBP USD NAV Per Share: 5.67 7.31 Net Asset Value (mn): 785.6 1,014.0 Share Price: 4.22 5.44 Market Capitalization (mn): 584.5 754.4 Premium/(Discount): -25.6% -25.6% GBP/USD exchange rate as of 31 March 2025: 1.2907 GBP/USD exchange rate as of 28 February 2025: 1.2389 Source: Bloomberg VOF VN Index 2025 Price-to-Earnings 10.2 10.6 2025 Earnings per Share Growth (%) 20.1 15.1 Beta 0.7 1.0 Sharpe Ratio 0.5 0.1 NAV Allocation By Sector³ NAV Performance Overview : VOF is a closed-ended investment company and FTSE-250 constituent whose shares are traded on the main market of the London Stock Exchange (ticker: VOF). Objective : VOF has the flexibility to invest in the best opportunities available in Vietnam's public and private markets, using the principles of private equity to generate superior risk-adjusted returns. VOF focuses on sectors benefitting from Vietnam’s rapidly growing domestic economy. Outreach : Portfolio Manager and Chief Economist will present at VinaCapital Investor Day in London hosted at Deutsche Numis on May 15th at 01:30PM. If interested to attend, please e-mail us to register for the event. Media : Investor Meet Company Presentation / Q1 2025 Vietnam Review and Outlook Webinar / VOF LinkedIn Page 3. Based on Global Industry Classification Standards (GICS) 1. Based on monthly total return, USD terms in 5 years; risk-free rate is the 5-year G-bond yield. VN Index is used as a reference; VOF is benchmark agnostic. Price And NAV Summary Key Metrics¹ Note: FY means Financial Year ending 30 June NAV By Entry Method 1M 3M FYTD CYTD 1YR 3YR 5YR Share Price (GBP) -5.5 -9.9 -13.9 -9.9 -6.5 -10.1 79.8 NAV Per Share (GBP) -4.7 -6.9 -2.6 -6.9 -4.5 -6.9 96.9 NAV Per Share (USD) -2.4 -4.2 -0.7 -4.2 -2.2 -8.6 105.1 VN Index (USD) 0.1 2.9 5.7 2.9 0.4 -17.7 97.4 MSCI EM (USD) 0.6 3.0 3.3 3.0 8.5 5.6 49.1 MSCI Vietnam (USD) 2.3 5.2 1.7 5.2 -7.8 -35.9 22.2 2. Inclusive of dividend distributions Cumulative Total Returns² (%) 3 Years 5 Years 19 Listed Companies 6 Private Companies with Top-10 accounting for 66% of NAV NAV By Asset Class GBP 785.6mn USD 1014.0mn Net Asset Value Portfolio Holdings 79.8% in GBP 5 Year Cumulative Share Price Total Return terms 14.5% in GBP 15.4% in USD 5 Year Annualized NAV Total Return terms Compounding Growth - NAV Long-term Share Price Performance GBP 427mn USD 592mn Share buyback since inception, equiv. to 57% of NAV GBP 72mn USD 92mn Share buyback in the last 12M, equiv. to 10% of NAV Share Buyback - Last 12 Months Share Buyback - Since Inception GBP 134mn USD 172mn Dividend paid out since inception 11.20 pence 14.25 cents Dividend declared in the last 12 months Dividends - Last 12 Months Dividends - Since Inception GBP 560mn USD 764mn Capital returned to investors since inception 2.6% in GBP Equivalent to circa 2% of NAV per share Dividends Yield Total Capital Returned > 44% 25% 8% 23% 0% 10% 20% 30% 40% 50% 60% Private Equity Private Placement & PIPE Government Privatization Stock purchased on Stock Exchange FY20 FY21 FY22 FY23 FY24 Khanh Vu Lead Portfolio Manager > 78.6% > 19.4% > 2.0% > Listed Equity (78.6%) > Private Equity (19.4%) > Cash & Others (2.0%) 2.0% > 2.5% > 3.6% > 6.0% > 8.7% > 8.8% > 12.9% > 13.5% > 20.6% > 21.4% > Cash & Others > Energy > Consumer Staples > Industrials > Information Technology > Healthcare > Consumer Discretionary > Materials > Real Estate > Financials > 0% 20% 40% 60% 80% 100% 120% 140% 31 Mar 20 30 Sep 20 31 Mar 21 30 Sep 21 31 Mar 22 30 Sep 22 31 Mar 23 30 Sep 23 31 Mar 24 30 Sep 24 31 Mar 25 VOF NAV VOF Share price -35% -30% -25% -20% -15% -10% -5% 0% 5% 31 Mar 22 31 Jul 22 30 Nov 22 31 Mar 23 31 Jul 23 30 Nov 23 31 Mar 24 31 Jul 24 30 Nov 24 31 Mar 25 # VinaCapital Vietnam Opportunity Fund (VOF) Monthly Report - March 2025 Portfolio Manager's Commentary Insights Into Vietnam's Economy Michael Kokalari, CFA Chief Economist The tariff rate for Vietnam's exports was much worse than we (and others) had predicted and have sent shock waves inside Vietnam, as the U.S. is Vietnam’s largest export market. The tariff rate was driven by Vietnam large trade deficit with the U.S. and Vietnam's Government has few ways to reduce the trade deficit including purchasing LNG, aircrafts and defense products from the U.S. Full Insights' Report Access to March Macroeconomic Report “In the midst of chaos, there is also opportunity” - Sun Tzu, The Art of War VOF’s NAV declined by 2.4% in March, as some of our holdings succumb to sell - ing pressure from local investors on the headline news of global uncertainties. On April 2nd, the Trump administration announced the “reciprocal tariffs” on over 60 countries, including a potential 46% reciprocal tariff on Vietnamese imports to the US, effective from April 9th. This sharp escalation—far above the 10% rate market consensus expected—would, if implemented, have a sig - nificant impact to Vietnam’s economic outlook, which our Chief Economist and Head of Research discussed in detail on the April 16 th webinar . Vietnam’s Gov - ernment was one of the most pro-active and earliest countries to reach out to the US to indicate their willingness to negotiate. Vietnam’s negotiation levers include lowering existing tariffs on US imports and securing purchase agree - ments for key products to reduce the trade surplus. Prior to the tariff announce - ment, there was already momentum for Vietnam to purchase more US goods, with reports of secured deals for energy by PetroVietnam Gas (HOSE: GAS, not held) and aircraft by VietJet (HOSE: VJC, not held). On April 9th, the “reciprocal tariffs” were subsequently placed on hold for 90-days as countries seek to nego - tiate with the US; we believe Vietnam’s tariff rate will be negotiated to between 20-30%. Regardless of the ultimate rate, Vietnam will continue to focus on the growth of its domestic economy to drive economic growth. We expect strong fiscal stimulus policies, including increased public spending, tax reductions and other relief measures to further boost consumer spending, and support for sec - tors most affected by tariffs. At the time of writing, Vietnam’s stock market has sold off circa 8% since the tariff announcement. Nevertheless, March was a very good month for the stock market: the VN-Index (VNI) ended the month at 1,307, marking a 3.2% gain in USD terms year-to-date. Midway through March, the index hit a three-year high of 1,318. The stock market was driven by retail investors against a backdrop of continued foreign net selling. Trading value climbed steadily week-over-week, with average daily turnover value (ADTV) reaching USD 890 million—a hefty 27.3% month-on-month increase and the highest levels since June 2024. Our Research team is currently running a sensitivity analysis on the impact of tariffs on earnings growth. For our base case scenario (20% tariffs), we forecasts a 10.5% earnings growth for 2025 compared to the pre-tariff earnings growth of 16.6%. Nevertheless, valuations remain attractive with forward Price-to-Earn - ings multiple approaching circa 10x— more than one standard deviation below the historical average (14x). Credit growth rises significantly in early 2025 In just under three months, Vietnam’s credit growth accelerated at an impres - sive pace—nearly 10-fold greater than the same period last year. According to the State Bank of Vietnam (SBV), total system-wide credit expanded 3.9% by the end of March 2025 compared to the end of 2024. This stands in contrast to the modest 0.26% growth recorded during the same period in 2024. This up - tick signals a positive shift in the financial landscape, reflecting the SBV’s policy measures in stimulating lending activity. Our top holding, Asia Commercial Bank (HOSE: ACB, NAV: 12.3%) remains confident in its outlook and committed to its 2025 credit growth target of 16–18%. With limited exposure to FDI and large import/export corporations— around just 1% of its loan book—the bank is relatively insulated from trade- related risks. ACB has proactively engaged with clients, many of whom have well-diversified businesses across markets, further minimising potential im - pact. As a result, ACB achieved approximately 3% credit growth in Q1 2025, a solid performance despite being slightly lower than the 3.8% growth recorded in Q1 2024. Asset quality also improved, with the NPL ratio easing to 1.35% from 1.39% in Q4 2024. Additionally, the recovery in the southern real estate market is expected to continue supporting the bank’s asset quality. Leveraging its strengths in the retail and SME segments, ACB remains well-positioned to drive growth in the year ahead. Another new banking stock in our portfolio is VietinBank (HOSE: CTG, NAV: 2.0%) , one of Vietnam’s “Big Four” banks and the second-largest bank in Vi - etnam in terms of asset base, and recognized for its strong corporate client base and active role in financing state-owned enterprises. In 2024, the bank reported robust credit growth of 16.8% year-on-year, outperforming the sec - tor average of 15.1%. The bank delivered a return on equity (ROE) of 18.5%, in line with other state-owned banks. Its trailing P/B ratio stands at 1.50x, above its 5-year average of 1.40x, yet still below BID and VCB, which trade at 2.03x and 2.62x, respectively. The bank targets 16% credit growth in 2025 and a 30% increase in profit before tax, reflecting the strong credit growth potential and the expectation of lower credit costs. This growth will be largely driven by rising credit demand amid economic expansion. CTG is also expected to benefit from increased government infrastructure spending. Amid a backdrop of easing borrowing costs and favourable lending terms, prop - erty ownership is becoming increasingly accessible to a broader segment of the population. This shift in affordability tends to stimulate housing demand, creating a tailwind for leading developers like Vinhomes (HOSE: VHM, NAV: 4.4%) . According to CBRE, Vinhomes has maintained a dominant market share, capturing 39% of the high-end condominium segment from 2016 to 2024 and 38% of the mid-end segment from 2019 to 2024. The company has entered 2025 with the highly anticipated rollout of two major projects: Wonder City in Hanoi (133 ha) and Green City in Long An (197 ha). Sales promotional activities have met with positive interest, setting the stage for robust presales, which will help the company reach its proposed target of 20% growth in net profit. With a track record of delivering large-scale, master-planned communities, the com - pany is likely to see stronger sales volumes and may accelerate the rollout of new projects to meet rising demand. VHM stock has increased 24.5% in March alone and has crept into top-10 holdings of the portfolio. Top 10 Holdings > Company (Ticker) Sector Market Cap > (USD bn) > % > NAV > 1M Price > Change > L12M Price > Change Description > Asia Commercial Bank (ACB) Financials 4.6 12.3% 0.0% 8.6% Leading local bank, focused on affluent retail segment and SME banking > Khang Dien House (KDH) Real Estate 1.3 10.4% -2.7% -5.1% Leading townhouse developer in Ho Chi Minh City > FPT Corporation (FPT) Information Tech. 7.0 8.7% -13.8% 21.1% Largest IT company, focused on software outsourcing and internet services > Hoa Phat Group (HPG) Materials 6.7 7.8% -4.5% -2.7% Largest local steel producer > Airports Corporation of Vietnam (ACV) Industrials 8.5 5.4% -6.8% 16.7% Largest airport operator with 22 airports nationwide > Tam Tri Hospital Healthcare Private Equity 5.1% Private Equity Private Equity Leading private healthcare service companies in Vietnam > Vinhomes (VHM) Real Estate 8.3 4.4% 24.5% 19.7% Largest real estate developer > Phu Nhuan Jewelry (PNJ) Consumer Discret. 1.1 3.9% -11.4% -14.0% Largest jewelry company > Vietnam Prosperity Bank (VPB) Financials 5.9 3.9% -1.6% 1.3% Leading retail bank, providing lending, brokerage, insurance services > Thu Cuc Hospital Healthcare Private Equity 3.8% Private Equity Private Equity Private hospital in Hanoi, specializing in outpatient and corporate medical services > Total 65.7% Investor Relations/Communications ir@vinacapital.com +84 28 3821 9930 www.vinacapital.com Joint Corporate Broker Barclays Bank PLC +44 207 623 2323 BarclaysInvestmentCompanies@barclays.com Deutsche Numis +44 20 7260 1000 funds@numis.com Marketing Cadarn Capital +44 20 7019 9042 info@cadarncapital.com Important Information This document, and the material contained therein, is not intended as an offer or solicitation for the subscription, purchase or sale of securities in VinaCapital Vietnam Opportunity Fund Limited (the “Company”). Any investment in any of the Companies must be based solely on the Admission Document of that Company or other offering document issued from time to time by that Company, in accordance with applicable laws. The material in this document is not intended to provide, and should not be relied on for accounting, legal or tax advice or investment recommendations. Potential investors are advised to independently review and/or obtain independent professional advice and draw their own conclusions regarding the economic benefit and risks of investment in either of the Companies and legal, regulatory, credit, tax and accounting aspects in relation to their particular circumstances. The securities of the Companies have not been and will not be registered under any securities laws of the United States of America nor any of its territories or possessions or areas subject to its jurisdiction and, absent an exemption, may not be offered for sale or sold to nationals or residents thereof. 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Board of Directors VinaCapital Investment Management Ltd VOF’s Board of Directors is composed entirely of independent non-executive directors: Investment Manager's senior management team: Name Role Name Role Huw Evans Non-executive Chairman Don Lam Group CEO Julian Healy Non-executive Director Brook Taylor Group COO Kathryn Matthews Non-executive Director Alex Hambly Group CIO Peter Hames Hai Trinh Charlotta Ginman Non-executive Director Non-executive Director Non-executive Director Khanh Vu Dieu Phuong Nguyen Managing Director Deputy Managing Director Fund information LEI 2138007UD8FBBVAX9469 ISIN GG00BYXVT888 Ticker VOF Fund summary Fund Launch 30 September 2003 Term of Fund Five years subject to shareholder vote for liquidation (next vote to be held by December 2028) Fund Domicile Guernsey Investment Manager VinaCapital Investment Management Ltd, with sub-delegation to VinaCapital Fund Management JSC an entity regulated by the State Securities Commission of Vietnam Joint Corporate Brokers Barclays Bank PLC, Deutsche Numis Management and Incentive Fee (Effective From 01 July 2023) A tiered management fee structure has been introduced, with the following annual rates applied to net assets: - 1.30% of net assets, levied on the first USD1,000 million of net assets - 1.00% of net assets, levied on net assets between USD1,000 million and USD1,500 million - 0.75% of net assets, levied on net assets between USD1,500 million and USD2,000 million - 0.50% of net assets, levied on net assets above USD2,000 million The incentive fee is 10% of any increase in NAV above an 10% per annum hurdle rate, with the cap on in - centive fees paid out in any year at 1.5% of weighted average of month-end net assets. Excess fees are still carried forward, but can be clawed back if NAV declines after the year end. The Investment manager must use 25% of any incentive fee paid to buy VOF shares via open market purchases, subject to a minimum holding period of 5 years. ESG VinaCapital's Responsible Investment Policy , alongside details of VOF's ESG Reporting and Voting, and other publications are available on the Company's website .