Vietnam Holding (VNH) , an investor in high-growth companies in Vietnam, announced its monthly investor report for April 2025, issued by VNH's investment manager Dynam Capital.
Dynam noted that Vietnam's economy remained resilient, though not immune to the geopolitical uncertainty that affected equity markets in April. Exports and imports were up 13% and 18.6% respectively year-on-year for the first 4 months of 2025, generating a trade surplus of US$3.8bn. Foreign direct investment also increased by 39.9% year-on-year to US$13.8bn for the 4 months.
Vietnam's stock market gradually rebounded in late April and early May after suffering a 17% decline immediately following Trump's tariff announcement. According to Dynam, retail investors bought the dip, building up sentiment and liquidity, with the latter recently hitting US$1bn/day. Strong banking earnings and positive signs from Vietnam's AGM season also contributed to the recovery.
Dynam remains confident in Vietnam's long-term momentum, driven by robust export growth, resilient domestic consumption, and investor-friendly policies that position the economy to effectively navigate the short-term volatility. Dynam notes that 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.
View from Vox
Another positive report from VNH on its Vietnamese equity portfolio that showed resilience in April amid the global trade headwinds, and a broad recovery so far in May, buoyed by the underlying strength of the Vietnamese economy. As of May 14, the fund was up 8% despite the downturn in April, with a 5-year performance of 16% in USD terms (after fees and forex), showing a 6% compound outperformance against the Vietnam All Share Index (VNAS). VNH has now outperformed the VNAS for 15 years.
The portfolio trades on a single-digit P/E ratio for 2025, yet with forecast EPS growth of more than 20%. Once clarity on tariffs and greater certainty return to markets, VNH's mid-term strategy should deliver. Despite short-term geopolitical uncertainty, VNH is staying true to its long-term themes and positions in consumer goods, industrialisation, banking and technology, especially in small and mid-cap companies, that are in line with Vietnam's urbanisation and growing middle class. Therefore, we expect the May rebound to continue and see further upside ahead.
VNH attributes its long-term outperformance vs. the VNAS to its agile approach and preference for structural growth themes like sustainability, logistics, and consumption. Additionally, VNH places an emphasis on ESG, having recently supported the 3rd annual Vietnam ESG Investor Conference while actively supporting its portfolio companies for ESG practices, and more recently working with MSCI to raise the bar further. As Vietnam strengthens its exports to the EU, the ESG factor will become increasingly relevant.
Vietnam's economy continues to deliver high growth - on track for 8% this year - despite the recent trade uncertainty, which is likely to resolve favourably for the country. Vietnam maintains high-growth targets for the next decade, supported by ongoing initiatives to cut red tape, broaden economic diversification, and stimulate private sector growth. As the US-China trade war unfolds, tech suppliers still consider Vietnam an attractive China+1 alternative as they advance supplier realignment strategies.
In short, Vietnam was able to withstand the tariff turbulence of April thanks to its diverse export base, stable macroeconomic policy, and rebounding domestic consumption. Strong fundamentals were evident, including the ongoing global demand for textiles, electronics, and agricultural products, as well as the rapid expansion of its services sector, which was supported by tourism and sustained retail sales. As mentioned, FDI jumped by 40% to US$13.8bn YTD.
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