Vietnam Holding (VNH) has published its monthly investor report for May 2026, highlighting Vietnam's resilient economic performance despite ongoing geopolitical uncertainty, inflationary pressures and weaker equity markets.
The company noted that Vietnam continues to outperform many global peers, with first-quarter GDP growth of 7.8% and expectations for growth of between 7.5% and 8% in the second quarter. Retail sales rose 11.8% in May, exports increased 19.5% during the first five months of the year, while foreign direct investment remained strong as manufacturers continued expanding capacity.
Although inflation accelerated to 5.6% during May due largely to higher oil prices linked to Middle East tensions, VietNam Holding believes the pressure is temporary rather than structural. The company expects inflation to ease to about 4.5% by the end of 2026, paving the way for interest rates to begin normalising.
Vietnam's trade deficit of US$13.8 billion over the first five months of the year was also described as constructive, reflecting strong imports of machinery, electronic components and inventory rather than weakening demand. Meanwhile, the country's tourism sector remains on course to welcome about 25 million visitors this year, supporting consumption, employment and infrastructure investment.
Against this backdrop, Vietnam's equity market was more subdued during May. The VN All-Share Index edged lower, while VNH's net asset value (NAV) per share declined 1.9% during the month and is down 5.4% year-to-date. Banking holdings including VPBank and ACB delivered positive contributions, although these were offset by weaker performances elsewhere in the portfolio.
The company continues to see attractive value across many of its core holdings, noting that several quality companies are trading at historically low valuations despite solid earnings prospects and robust balance sheets. It has also begun deploying cash into high-conviction positions ahead of Vietnam's expected FTSE Russell market upgrade in September, which is anticipated to attract additional international capital into the country's equity market.
View from Vox
Vietnam Holding's latest update reinforces the long-term investment case for Vietnam despite short-term market volatility. Strong economic growth, rising foreign investment and the prospect of an FTSE Russell upgrade provide supportive structural tailwinds, while current valuations could present an attractive entry point for patient investors.