Vietnam Holding (VNH) , an investor in high-growth companies in Vietnam, announced its monthly investor report for July 2025, issued by VNH's investment manager Dynam Capital.
Dynam noted the continued strong momentum of the Vietnamese economy, driven by robust export growth, resilient domestic consumption, and investor-friendly policies. Equity markets rallied in July, with the VN Index rising 9% to an all-time high of 1,557, defying tariff headwinds. Record daily liquidity underpinned this momentum, with strong earnings and improved sentiment keeping valuations attractive.
July marked H1 GDP growth of 7.5% - the highest H1 figure in 15 years - propelled by a mix of manufacturing, services, and timely rollout of public investment. The economy remains on track for 8% growth this year. In addition, Vietnam saw its accumulated trade surplus increase further in July to US$10.2bn, alongside a 27.3% increase in foreign direct investment to US$24.1bn for the first 7 months of 2025.
Other economic indicators were similarly positive. Manufacturing PMI returned to expansion at 52.4, supported by the government's recently reaffirmed US$36bn public spending program and ongoing fiscal and monetary easing. While US tariffs remained a risk, the recent cap on most export tariffs at 20% has eased immediate concerns.
In July, Vietnam saw a significant administrative shift, with a consolidation of its previously 63 provinces into 34, creating a newly expanded Ho Chi Minh City that now accounts for over 25% of national GDP. This reclassification is expected to influence infrastructure priorities, inter-provincial connectivity, and the distribution of public and private investment flows in the months to come.
Overall, the economy's strong fundamentals and structural resilience continue to set it apart in the region, solidifying Vietnam's position as a leading China+1 destination for multinational corporations and outperforming many regional peers. Key macro indicators remain supportive of growth, with robust tourism, accelerating public investment, and steadily growing household consumption.
VNH performance:
Against this backdrop, VNH's NAV/share rose by 6.5% in July - a solid reflection of the portfolio's earnings-driven positioning. The fund maintains a concentrated allocation, with over 60% of NAV in its top 10 holdings, led by major banks Sacombank, MB Bank, and Asia Commercial Bank, as well as consumer staples like Mobile World and Hoa Phat Group. EPS growth remained the portfolio's primary driver.
VNH has now delivered 20% compound annual growth over the past 5 years, comfortably outperforming the market by around 500 basis points. A slight increase in exposure to larger-cap and higher-liquidity stocks positions it to benefit from index-tracking flows likely to follow ETF launches and an eventual FTSE upgrade.
Market sentiment in Vietnam has been steadily improving, reflected in daily trading volumes, which have been consistently around the $1bn mark. Domestic participation continues to expand, with over 10 million retail trading accounts now open, representing nearly 10% of the population. The prospect of locally listed ETFs and MSCI rebalancing, alongside longer-term potential for an upgrade to emerging market status, offers additional catalysts for a market re-rating.
Looking ahead, a supportive macro environment, strong earnings, and rising institutional investor interest, position VNH strongly for H2 2025.
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