Vietnam Share Discussion Threads

[tigletpiglet] 16/9/2021 10:47

Hi, what price per share did you guys get for your tendered shares?

TY

[spangle93] 16/9/2021 09:28

HL activity, at last

Sold 51.6% of my 100% tendered shares, cash in account. Happy days.

Maybe recent strength is people using received cash to buy back shares sold, at a discount

[shaker44] 16/9/2021 07:32

If the major 3 holders, who own 40%, tendered and then buy back there will be some chunky purchases very soon

[chester] 16/9/2021 07:32

I managed to get 55% tendered. Paid on the 13th.

[shaker44] 16/9/2021 07:28

Similar at Iweb but they are usually pretty slow.

[spangle93] 16/9/2021 07:06

Exotic - no sign of anything in my HL account last night.
I expected it to be oversubscribed, so couldn't see why I shouldn't tender 100%. It will be interesting to see what I'm scaled back to

[exotic] 15/9/2021 23:18

Yes what a nice surprise, I had 51.65% tendered with Hargreaves. I guess a lot of Hargreaves clients didn't tender any.

No sign of the money yet, I really hope it's paid back into my Hargreaves account as it's an ISA.

[ceaserxzy] 15/9/2021 17:52

Tender money received. Got more than 50% tendered, a pleasant surprise. Will now buy back some from market when price is right.

[davebowler] 14/9/2021 10:01

Vietnam Holding Limited (VNH) Investor Report – August 2021

Tough Times for Urbanistas

The streets of Ho Chi Minh City and surrounding provinces became subdued during the month of August as rising Delta variant cases spread across much of Southeast Asia, significantly dampening Vietnam’s economic activities in the short-term. A strict lockdown, working-from-home and factory closures squeezed Vietnam’s manufacturing sector and caused a new level of domestic disruption in the global supply chains that have been driving its extraordinary export-led growth even in 2020 when most countries endured record recessions. Nevertheless, the sense of community and social responsibility underpinning Vietnam’s handling of the virus throughout the pandemic demonstrated once again why the country continues to stand out during these turbulent times. The Economist’s recent article, ‘The economy that Covid-19 could not stop’ discussed Vietnam’s unrivalled resiliency in this respect by putting its success story into context whilst also pointing out how “its successful diaspora” makes the country one of the largest recipients of remittances in the world with US$20bn flowing in last year, equivalent to 7% of GDP. Despite the Delta variant’s dent on exports and retail sales, the Fund was up +1.9% for the month, led partly by our profit-taking in the banking sector which had rallied in the last few quarters but has since become more uncertain in the short-term given the bad debts building up in some loan portfolios. Our overweight in brokerage firms was also a positive contributor. Being able to trade from home, domestic retail investors became even more active with daily trading volumes hitting US$1.5 bn per day, five times the levels in 2019. We expect the brokerage sector to continue to outperform given positive developments in the equity market, with high market liquidity and lower funding cost for margin lending activities. The Fund’s NAV is up 42.6% this year, leading the pack of Vietnam focussed funds.

Urbanisation is one of the key themes of our investment strategy and the communal mindset of Vietnamese citizens provides us with unmissable opportunities as responsible investors with well-defined environmental, social and governance selection criteria. The scenes in Vietnam’s cities are unique, for example, with the military efforts in distributing food to those in need rather than quelling unhappy crowds in other parts of SE Asia. Ironically, in commemorating International Clean Air Day in early September, our own ESG manager recalled a national survey about working from home to help reduce global warming before anyone ever heard of Covid-19 or thought about such a disruption forcing remote working. The notion was unpopular at the time, but we have seen the population embrace the Covid-19 situation by looking for ways to turn it into opportunities to pull together and build back better.

August saw a sharp contraction in industrial production, and a large drop in retail sales and yet The World Bank’s latest forecasts for Vietnam expect an overall expansion of 4.8% for 2021 and we remain optimistic for the long-term. By early September the number of Covid-19 cases had risen to more than 572,000, with 15,000 deaths. Although the vaccination rollout has not been as swift as in the West, tremendous progress was underway by early September, especially in HCMC where close to 90% of the adult population had received at least one jab. In addition, vaccination rates are increasing at a faster pace in other areas of the country as more jabs become available. Several provinces have started to ease restrictions, as a result, allowing economic activities to resume and negative impacts eventually wane.

At the EGM on 31st August 2021 shareholders approved the Market Purchase of 30% of the Fund’s shares pursuant to the Tender Offer announced on 3rd August. The Tender price of US$4.4528 per share was announced on 7th September. The 31st August NAV includes sufficient cash to fund the Tender.

[shaker44] 13/9/2021 08:22

'we remain optimistic for the long term' could be taken as a hold but for me it's a buy, at 18% discount!

[spangle93] 13/9/2021 07:20

Money should be in accounts this week

"Payment under Tender Offer announced: Cheques dispatched and payments made through CREST in the week commencing 13 September"

Monthly investor report this morning reads more like a HOLD than a BUY?

[shaker44] 03/9/2021 02:42

I believe the 3.9% is of the excess tendered. In your example of 70k.
maybe I am wrong.
Unless the nominee makes a mistake, I believe they should only have tendered those held before cut off. If any did get it wrong and that was not picked up by VNH (seems unlikely surely) then that will have reduced the excess allocation over 30% down to 3.9% from something higher.
I am not expecting to have 'sold' less than 30% + 3.9% of 70% through Iweb.
Maybe I will be disappointed.

[exotic] 02/9/2021 22:47

A couple of minor corrections to what I posted earlier -
a. The tender offer was for 30%, not 1/3.
b. According to post 222, it was Interactive Investor ("ii") allowing late comers to take part in the tender offer, not Hargreaves (though I'm sure ii were not the only broker doing it).

Back to my original point. Say nominees in ii were holding a combined total of 100,000 shares on the cut-off date (6pm 2nd August) then ii would have 33,900 shares eligible for the tender offer (30% + 3.9%). However, it became known that you could buy through ii after the cut-off date and still participate in the tender offer. So for example, if ii were now holding 200,000 on the 26th August, the most ii could tender is still the 33,900 shares based on their holding on the 2nd August. In this simplistic example, ii nominees would be holding 200,000 and only able to tender 33,900 or 16.95% of shares.

[shaker44] 02/9/2021 02:10

I don't understand. How do you think you may get less than 1/3 purchased? You mean if say only 1/4 were tended by HL in aggregate, you will only get proceeds of 1/4?? Surely not.

[exotic] 01/9/2021 21:55

Looks like some nominee holders might not even get the 3.9% extra. Previous posts indicated Hargreaves were allowing anyone to purchase right up until 25th August - and still be eligible for the tender offer.

As a Hargreaves customer myself, I'd be surprised if even the full 1/3 of my holding is purchased in the offer.


Meanwhile, 4 x RNSs over on VOF. Seems there is good value in all 3 Vietnam funds (VNH, VOF and VEIL), and efforts to unlock it continue.

[shaker44] 01/9/2021 09:34

Unless investors reinvest to replace those tendered, the fund will shrink by 1/3 to about £80m.small beer
Morning star show vnh fees as 3%.
fee income may reduce much faster than expenses.
What is the fund managers end game. Rinse and repeat, wrap it up, or milk it, just doing essential admin and little analysis, marketing etc?
Maybe better to reinvest in vof?

[shaker44] 01/9/2021 09:22

Any thoughts on how this changes the investment case post tender? And merits of buying to replace those tendered now, or after mid september?

[hiddendepths] 01/9/2021 08:47

I was hoping for a bit more than the 3.9% extra, but it's free money so not grumbling!

[shaker44] 01/9/2021 07:48

Thanks spangle. Better outcome than I expected. I thought more would be tendered. NAV currently 331.4p. Nice

[spangle93] 01/9/2021 07:28

Not many excess shares issued - everyone wanted to cash their allocation in



28,736,221 Shares (representing 67.5% of the Shares outstanding) were validly tendered of which 12,356,927 Shares were in respect of Basic Entitlements and 12,087,126 Shares were in respect of Excess Applications.

As a result, all valid tenders will be satisfied in full up to the Basic Entitlement and, following application of the scale-back mechanism (as set out in the circular sent to shareholders on 3 August 2021 (the "Circular"), tenders in excess of the Basic Entitlement will be satisfied to the extent of 3.9% of the excess Shares tendered (each such satisfied entitlement being rounded down to the nearest whole number of Shares).

It is expected that the Tender Price will be announced the week commencing 6 September 2021.

[shaker44] 23/8/2021 13:02

Cut off with Iweb is close of play today 23/8.

[exotic] 20/8/2021 11:36

Discount to NAV is now -13.53%, thought it would have been smaller by now.

Deadline on Hargreaves is noon Wednesday.

[exotic] 17/8/2021 21:08

For anyone who missed it, the FULL monthly investor report is on the website:





The following is a summary only:

RNS Number : 7206I
16 August 2021
VietNam Holding Limited ("VNH" or the "Company")

Monthly Investor Report

A report detailing the activities of the Company for the month of July 2021 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.

Opportunities in times of uncertainty

July was a volatile month in Vietnam. Its economic growth streak of the past 12 months slowed due to the spread of the Covid-19 delta variant and consequential disruption to much of the country and its neighbouring nations. The government responded as expected with strict social distancing rules to constrain the more contagious wave. Yet while retail sales suffered, -19.8% YoY, and manufacturing contracted for a second consecutive month, Vietnam's trade growth maintained its momentum and the government managed to accelerate its vaccination rollout, with heightened plans to jab 70% of the population in HCMC, where most of the cases in the country were concentrated, by the end of August. The Fund's NAV was down -2.6% for the month but outperformed the VNAS and other indices in Vietnam, which saw their biggest equity market declines since the coronavirus crisis first struck in Q1 2020. FPT remained a top positive contributor in VNH's portfolio, reporting revenue and NPATMI growth of 19.2% and 17.2%, respectively, for 1H2021, as demand for technology and IT services continues to thrive throughout the pandemic. MWG, which is issuing a 50% stock dividend with ex-right date on 30 August 2021, is another one of our sustainable growth stories both before and during the Covid-19 era. Its Bach Hoa Xanh chain is expected to report a record high revenue per store per month in July despite the delta disruption. As an active, selective manager with high conviction and responsible investment principles at its core, we are always eyeing opportunities that meet our strategic criteria and appetite for risk, and the United Nation's Intergovernmental Panel on Climate Change's (IPCC) report released in early August was the latest stark warning of the role investors can play in addressing the existential threats the world is facing by turning them into opportunities.

Electric vehicles is a prime example, and although the market in Vietnam is in its infancy it is one that we have been researching for some time. Like digitalisation it is an irreversible trend, especially given's Vietnam's growing and more conscious-consuming urban middle-class population. On top of this demand potential, is the fact that Vietnam's first-ever domestic car manufacturer, VinFast, a subsidiary of Vingroup, is well on the electronic vehicle path having sold 50,000 e-motorbikes in 2019. We expect more foreign private entities to promote this market in Vietnam as collective action for reducing global warming increases. VinFast has partnered up with Austria-based battery tech provider, Kreisel Electric, to make batteries for electric cars and buses. LG, the South Korean conglomerate corporation, also has a joint venture with VinFast to produce batteries for both electric cars and scooters. Other international companies have become more energetic about the potential in Vietnam for both domestic sales, particularly of e-motorbikes and e-scooters, and efficient manufacturing sites. Mitsubishi Motors, for example, has had a MoU with the Ministry of Industry and Trade on R&D for electric vehicles for three years now, and we expect to see more international start-ups, such as Modmo, an electric bicycle maker, setting up factories in Vietnam for more efficient product creation and supply chain management. Modmo joins PEGA and Dat Bike aiming to put Vietnam on the global e-bike map. Although we might not invest directly in these manufacturers, the business linkages supporting such value-added 'clusters' may generate opportunities in logistics and industrial real-estate, which are sectors we are invested in, and we see as primed for longer-term growth.

NB: On August 3rd, VNH announced a tender offer for 30% of the Company's shares at a 2% discount to August 31st NAV. Shareholders on the register at August 2nd may participate in the tender by 26th August and all are reminded to vote prior to the August 31st EGM.

[shaker44] 13/8/2021 13:23

Sure but still only supposed to be those individual holdings on 2/8. Interesting pull-back today?

[888icb] 12/8/2021 14:32

It will be because of how the big brokers are treated as one shareholder aggregating the holdings of the individual shareholders.