VietNam Holding Limited ("VNH" or the "Company")

Monthly Investor Report

A report detailing the activities of the Company for the month of May 2023 has been issued by Dynam Capital Limited, the investment manager of the Company. Electronic copies of the report have been made available to shareholders on the Company's website and a summary of the report is included below.

Manager Commentary - May's green shoots of improvement 

Greater awareness of environmental, social and governance (ESG) issues in Vietnam was blooming in May and the momentum continued into the first day of June, with the inaugural Vietnam ESG Investor Conference in Ho Chi Minh City. We were a key supporter and lead sponsor of the event, a first of its kind for Vietnam, attracting over 350 business leaders, investors, government officials and delegations from overseas. The consensus was that while there is a way to go in getting companies to act on ESG issues, changing stakeholder expectations are forcing them to better define and drive their strategies. Listed companies have been required to report their corporate objectives for managing environment and social impacts, including their GHG emissions, since 2021, and we remain focused on supporting our investee companies on this.

Craig Martin, in his keynote speech, advised investors to use ESG as a screen for separating 'the great companies from the good, and the good from the bad' in their selection criteria and called on companies to 'do more, measure more, and report more' if they are to achieve their goals. Indeed, only a week earlier, Vietnam approved its new power plan, which aims to boost wind and gas energy while also reducing reliance on coal. The plan, known as, PDP8, requires nearly US$135 bn of funding for new plants and grids, and follows the establishment of the Just Energy Transition Partnership (JETP) with G7 countries at the end of 2022. It is an important step forward for Vietnam's net-zero transition because it not only sets out the country's electricity roadmap to 2030 but also gives investors more clarity about the projects the government is likely to back moving forward. Although the government's commitments are becoming clearer, many challenges remain for Vietnam's transition to a green, low-emission economy.  For one, its demand for electricity has been rising exponentially due to the booming middle class and ongoing urbanisation, which have helped stimulate the country's remarkable growth over the past few decades. The need for investment to keep pace, therefore, is only intensifying. As Vietnam could be one of the countries hardest hit by climate change, collaboration in progressing the transition will be key. While the global economic slowdown still poses the biggest threat to manufacturing growth in Vietnam, the country's domestic macro story paints a prettier picture. Foreign trade picked up slightly in May, inflation remained relatively low and port activity strengthened. Retail sales was also upbeat, mainly thanks to the tourism recovery which saw international arrivals jump +12.6 times YoY. Additionally, public investment is up 18% YoY for 5M2023 and on track accounting for 26% of the whole year plan.

Vietnam's equity market also sustained a gradual recovery in May, with trailing price-earnings-ratios up almost 50% from six months ago and the Vietnam All Share Index (VNAS) up 8% for 5M2023. Liquidity further improved as locals remain active and valuations attractive. VNH's NAV rose 3.1% in May, outperforming the VNAS for the month, though slightly below the index for the year to date at +7.7%. The Fund has been nimble during recent volatile periods, adding to IDS - the leading industrial zone developer in Vietnam - and HPG - the biggest steel maker in Southeast Asia - at better prices. Our move into PV Technical Services earlier in the year has been rewarded with a 22.4% increase in May. This is a company in transition: historically a contractor and leading operator of offshore support vessels for the Oil and Gas industry, it is pivoting to become a key supplier to the offshore wind energy sector, as well as to gas power projects. This sector is poised to get a significant boost domestically under the PDP8 plan, and the company has also entered into an initial agreement to support the export of renewable energy in the future to Singapore, which would involve building one of the world's longest undersea power cables.

For more information please contact:

Dynam Capital Limited                  

Craig Martin                                                                                       Tel: +84 28 3827 7590

info@dynamcapital.com |www.dynamcapital.com

www.vietnamholding.com

finnCap

Corporate Broker and Financial Advisor                                            Tel: +44 20 7220 0500      

William Marle