VietNam Holding (VNH ) reported a 10.9% year-to-date rise in NAV per share at end-September, aided by continued strength in banks, financials and the recovering real estate sector.
The September update comes as Vietnam secures a major market milestone. On 7 October, FTSE Russell confirmed the country’s upgrade from Frontier to Secondary Emerging Market status, effective September 2026 subject to a March review. The decision follows key market infrastructure enhancements, including the removal of pre-funding for foreign investors and the launch of the KRX trading system.
Analysts estimate the reclassification could draw between US$4 billion and US$10 billion of portfolio inflows over the next 12 to 18 months, with some projecting up to US$25 billion by 2030. Increased global participation is expected to deepen liquidity and support valuations for well-governed companies.
Vietnam’s macro backdrop remains supportive. The economy is on track for 8% GDP growth in 2025 after expanding 6.93% in Q1, 7.96% in Q2 and an estimated 8.23% in Q3. Exports are robust, led by electronics and agriculture. Foreign direct investment disbursements rose 8.5% year-on-year to US$18.8 billion in the first nine months, while a US$36 billion public-investment programme continues to underpin infrastructure activity. In September, the government launched an International Financial Centre framework focused on Ho Chi Minh City and Danang to attract international capital and align regulations with global standards.
VietNam Holding’s portfolio performance was supported by continued strength in banks and financials, alongside a recovering real estate sector. Within financials, MBB remains a leader in digital banking adoption and efficiency. The Fund took prudent profits in FPT, balancing long-term conviction with near-term caution amid AI-driven shifts in the IT sector, softer United States outsourcing demand and regulatory uncertainty following changes in FPT Telecom’s ownership structure.
Domestic trading activity has reached record levels, making Vietnam the most liquid market in Southeast Asia and enabling the fund to meet a 17.9% annual redemption request with ease. Retail flows can heighten short-term volatility, but the broader trend remains upward, supported by reforms, foreign interest and strong local participation.
View from Vox
The 10.9% year-to-date NAV gain is well-timed with Vietnam’s step up to Secondary Emerging Market status. Looking ahead, the step up broadens Vietnam’s investor base and could catalyse a re-rating. VietNam Holding’s focus on earnings growth, governance quality and market-leading franchises positions the portfolio to capture structural gains as the market transitions further into the global mainstream.