Vietnam Enterprise Inves... Share Discussion Threads

[31337 c0d3r] 06/6/2025 07:51:46

Vietnam Enterprise Investments: New Research

05/06/2025

VEIL is positioned for Vietnam's new 'era of ascendence'…

The investment companies team at Kepler Trust Intelligence has produced a new piece of investment bank quality research about the trust, designed to provide a clear and comprehensive reference for long term investors. This note is free to read for UK investors.




Overview
Vietnam Enterprise Investments (VEIL) is positioned for strong domestic growth in the country as the reformist government targets GDP growth of 8%. While tariffs have caused some overseas concern on the outlook for the country, manager Tuan Le and his team have topped up their positions in real estate, banks, and high-quality consumption-linked businesses and are forecasting double-digit earnings growth for their domestically-focussed portfolio in 2025. The government has unveiled ambitious plans to grow the size of the private sector and have it drive development over the coming five years which it has dubbed an ‘era of ascendence’.

Tuan Le took over the lead manager role in February 2024 and delivered strong performance in his first year. A shift to mid-caps was among the factors driving the outperformance in 2024, while the Portfolio was tilted further to the domestic growth story. A raised position in real estate has started to perform well in 2025 too.

It is domestic flows which have supported the Vietnamese market over the past year and a half, with overseas investors withdrawing, and this was enough for the market and VEIL’s portfolio to post double-digit returns in 2024, adding to a strong long-term Performance record. However, Vietnam is expected to be upgraded to emerging market status by FTSE in September, which could see foreign inflows return and provide further stimulus.

The trust trades on a wide Discount which sits at 20% at the time of writing. The board has been buying back shares at a decent rate, while it has committed to a tender offer of 100% of the share capital if the company doesn’t outperform its index over the next five years. There is a discontinuation vote due at the AGM on 18/06/2025. On the same day, the company is hosting a forum open to shareholders and non-shareholders alike, hosted by Dominic Scriven OBE. You can register to attend in person or virtually at the following link.

Analyst's View
We think VEIL is an attractive way to get exposure to Vietnam’s extraordinary development path which seems likely to generate high GDP and corporate earnings growth for years to come. The authorities have committed to a series of reforms and policies which the Dragon Capital team compare to the 1986 Big Bang which saw market forces introduced into the Vietnamese economy. Notably, they aim to ensure the private sector drives growth and becomes a much larger share of the economy, which implies policies that should be supportive of free enterprise, an expansion of the stock market, and growth in domestic and overseas ownership of Vietnamese equities.

Overseas investors have clearly been concerned about the potential for high tariffs to hit Vietnam. While it is true that these tariffs may well be negotiated down significantly, this is unlikely to be a satisfying answer to an investor considering investment. More importantly, we think the strong domestic story is a reason to buy into Vietnam, a market trading at low multiples and with infrastructure spending, tax cuts, subsidies, and an emerging middle class all providing counteracting growth drivers. The inclusion of Vietnam in the FTSE Emerging Markets series should provide a boost to the market late this year, and with foreign ownership having reached record lows late in 2024, we think this, and any resolution to the tariff issue could see strong technical support behind the market.

Investors will shortly have the chance to vote against the discontinuation of the company. Assuming this resolution fails, there will be another vote in 2030 and an additional CTO if the NAV fails to beat the benchmark over the next five years. In the interim, the board are buying back considerable numbers of shares. This focus on shareholder value makes the current wide discount of 20% even more attractive in our view, while it is another layer of value which could reap returns as and when Vietnam comes back into favour.


Bull
Vietnam is an exciting structural growth story combining internal drivers from middle-class formation with external factors via capitalising on increasing global trade and connectivity
Dragon Capital is the largest foreign investor in the country, with connections and experience second to none
VEIL is trading on a double-digit discount, which could boost returns when market sentiment improves


Bear
US trade policy is uncertain and could have a negative impact on corporates and/or currency
Single-country funds bring both currency and political risk
High OCF (like the other specialist Vietnam trusts)

[31337 c0d3r] 29/5/2025 08:57:45

33.3% of the portfolio invested in banking, is that wise?

[tag57] 28/5/2025 09:36:33

Aleman, totally agree. A good number of my holdings are in the process of buybacks and it is having zero effect on the share price I would much prefer the management teams to just concentrate on building the portfolio and growing the dividend, leave the share price to the market.

[31337 c0d3r] 28/5/2025 07:31:39

28 May 2025

Vietnam Enterprise Investments Limited

("VEIL" or the "Company")

VEIL is a London-listed investment company investing primarily in listed equities in Vietnam and is a FTSE 250 constituent.

We are pleased to invite you to join us at VEIL's Vietnam Forum on 18 June 2025 in London, which will include the Company's AGM.

The event will include presentations from Dominic Scriven OBE, and Tuan Le, the Lead Portfolio Manager of VEIL, followed by a Vietnamese buffet lunch. VEIL's Board of Directors will also be attending the event and will be available for questions.

Shareholders who wish to attend the event in person and vote in the AGM should register in advance by using the following link:





Event: Vietnam Forum and VEIL Annual General Meeting 2025

Date: 18 June 2025

Time: 12:00 PM - 3:00 PM

Location: Stationers' Hall, Ave Maria Lane, London EC4M 7DD

RSVP: Kindly complete your registration by Sunday, 15 June 2025



The Forum will include:



· Insights from Dominic Scriven OBE, Chair of Dragon Capital Group, on Vietnam's latest economic and policy developments;

· An interactive presentation from VEIL's Lead Portfolio Manager, Tuan Le, on the equity market and VEIL's positioning;

· The opportunity to cast your vote in this year's AGM proceedings and;

· Connecting over a relaxed Vietnamese buffet lunch with fellow shareholders, VEIL Directors, and Dragon Capital's senior management.



Agenda:



12:00 PM



Welcome Remarks and AGM Proceedings

Sarah Arkle, Chair of Vietnam Enterprise Investments Limited (VEIL)

12:20 PM

Presentation

Dominic Scriven, Chair of Dragon Capital Group, Vietnam

12:35 PM



Presentation

Tuan Le, VEIL Lead Portfolio Manager

12:50 PM

Questions and Answers with the VEIL Board and Tuan Le

1:15 PM

Vietnamese Buffet Lunch



Attendance and Registration


If you have colleagues who also might be interested in attending, please forward this invitation to them and encourage them to register directly via the link above. Both existing VEIL shareholders and individuals keen to learn more about investing in Vietnam are welcome to attend.



Please note numbers at the venue are limited, so please ensure you register. Furthermore, if you have registered and then can't make it, please can you kindly let us know by emailing [e-mail].

Shareholders who wish to attend the AGM remotely should register for the event in advance by using the following link to the Investor Meet Company platform:



Important Notice

Please note that the AGM circular has been dispatched to all shareholders. We strongly recommend submitting your votes via proxy as early as possible. Online voting will not be available during the AGM via the platform.



2025 AGM CIRCULAR


We look forward to welcoming you to this important event.

[novision] 25/5/2025 15:17:57

interesting video on Vietnam dynamics.

[aleman] 29/4/2025 09:06:55

How can an investment fund grow by constantly selling off its assets? It makes it worse that so many are doing it at the same time, depressing the prices received. It largely seems to be failing to reduce discounts and NAVs would be higher if everyone stopped selling. Vote against buy-backs for investment funds.

There are slightly different issues with buy-backs in trading companies but they also have negatives for the individual companies and the wider economy. I suggest investors vote against those, too, unless the benefits on a case by case basis to the shareholders are clear.

[31337 c0d3r] 29/4/2025 08:13:39

Financial Report is out.

Buying back shares increased the NAV by just 1.8%, and the discount is still at a historically high level. Was it worth the $121m we spent on this?

The 5-year tender mechanism doesn't seem tough enough to address the discount.

[tag57] 09/4/2025 22:22:31

Could see a big bounce tomorrow although the tariff problem will pop up again in a few months.

[amt] 09/4/2025 22:09:47

Blimey Aleman that IC article headline turned out well.

[novision] 14/3/2025 18:19:09

Some more interesting thoughts on Vietnam

[aleman] 13/3/2025 09:59:27

It's interesting that IC see a Vietnam trust as a potential beneficiary of the trade war rather than a victim.



This trust is ready to take advantage of the trade war

There are a handful of funds that invest in trade war beneficiary Vietnam – but one in particular looks promising

Published on March 6, 2025
by Dave Baxter

[31337 c0d3r] 07/3/2025 20:00:23

Up 1.51% today, seems to be working already.

I wonder if this was partly to stave off Bill Gates' recent VEIL purchase, keeping in mind the upcoming discontinuation vote.



For future reference:
The Company announces that, at its close of business on 6 March 2025 its unaudited net asset value was USD 1809.2 million or USD 9.94 per share (Sterling equivalent at that date was GBP 1403.5 million or GBP 7.71 per share).

Yesterday's close:
596p

Discount to NAV:
22.69%

[31337 c0d3r] 07/3/2025 07:14:45

7 March 2025



Vietnam Enterprise Investments Limited

("VEIL" or the "Company")



100% Conditional Tender Offer



The Board of VEIL is pleased to announce that the Company proposes to introduce a five-year performance-related 100% conditional tender offer (the "Conditional Tender Offer").



The Conditional Tender Offer will be conditional on the Company's net asset value ("NAV") total return underperforming against its reference index, currently the Vietnam Ho Chi Minh Stock Index ("VN Index"), over the five-year period from close of business on 31 March 2025 to close of business on 31 March 2030 (the "Performance Period").



The Board has confidence that the Company's Investment Manager will outperform the Company's reference index over the next five years. Nonetheless, in consultation with the Investment Manager, the Board has decided that, should performance be below the reference index, there should be a mechanism for shareholders to realise up to 100% of their interests in the Company.



Accordingly, if the Company's NAV total return fails to meet or exceed the reference index total return (both in USD terms) over the Performance Period, and subject to the Discontinuation Resolutions (as such term is defined below) not being passed at the Company's 2025 and 2030 annual general meetings, the Board will put forward proposals to shareholders to undertake a tender offer for up to 100% of their interests in the Company. Any such tender offer will be at a price equal to the realisation proceeds of a tender pool created by reference to the then prevailing NAV less the costs of the tender offer. The allocation of the Company's assets to the tender pool will be undertaken with the aim of ensuring that continuing and exiting shareholders are treated fairly. The return of capital from the realisation of assets in the tender pool may take place in more than one tranche, with the timing of returns of capital dependent on the number of shares tendered, the composition of the tender pool and prevailing market liquidity at that time.



In accordance with the Company's articles of association (the "Articles"), the Company is required to propose a special resolution for the winding up of the Company at its annual general meeting in 2025 and every five years thereafter (a "Discontinuation Resolution"), such resolution becoming effective on the 31 December in the second year after the passing of the Discontinuation Resolution. The purpose of the Discontinuation Resolution is to enable shareholders to reflect, on a reasonably regular basis, on the continued existence of the Company.



If the Conditional Tender Offer is triggered, the Company intends to seek shareholder approval for the requisite share buy-back authority at the Company's annual general meeting in 2030. The Conditional Tender Offer will be conditional upon obtaining this approval, meaning shareholders will ultimately decide whether the Conditional Tender Offer proceeds. The Conditional Tender Offer will also be conditional on the Discontinuation Resolution not being passed at the Company's 2030 annual general meeting.



If the Discontinuation Resolution is passed at the 2030 annual general meeting, shareholders would ultimately receive the proceeds from 100 per cent of their investment through the winding-up process. However, in accordance with the Articles, the winding-up would only take effect on 31 December 2032, and the process of realising the portfolio and distributing proceeds to shareholders may take longer, depending on market conditions and the liquidity of the Company's portfolio. The Board therefore expects that, if triggered, the Conditional Tender Offer would provide an alternative mechanism for shareholders seeking a shorter timeframe for the return of their capital.



The introduction of the Conditional Tender Offer will not affect the Board's current approach to discount management, and the Board will continue to exercise its authority to buy back shares when it believes this to be in shareholders' interests, and with the aim of managing the discount at which the Company's shares trade relative to the NAV per share.



Chair Sarah Arkle said: "The Board remains confident in the Company's future prospects. However, we are disappointed with the level of the discount at which the Company's shares have been trading, which has widened in common with other listed investment company discounts. In recognition of this, and to give shareholders an opportunity to exit their holding if the Company underperforms, and with the full support of the Investment Manager, the Board is introducing a 100% Conditional Tender Offer, allowing shareholders to realise up to 100% of their investment if the Company's NAV performance underperforms its reference index over the next five years. This ensures that, in the event of underperformance against the reference index, shareholders who wish to exit have a structured option, while long-term investors can continue to benefit from Dragon Capital's investment process and commitment to active fund management, which will remain unchanged. We believe this strikes the right balance between confidence in our future performance and our commitment to shareholder value."

[tag57] 15/2/2025 23:49:05

That last sentence is why I am invested here. ATM just a small allocation though but intending to build on it over the medium term.

[dickbush] 15/2/2025 23:26:50

GMO is pleased to announce the launch of an exciting new investment capability, the GMO Beyond China Strategy.

A seismic realignment of global manufacturing is underway, as companies around the world are shifting supply chains away from China to other countries. We believe this is the beginning of a multi-year, possibly multi-decade, trend that will reshape the global economy.

GMO Beyond China aims to capture this opportunity by investing in the most attractive countries, sectors, and companies we believe are positioned to benefit from this capital reallocation.

Arjun Divecha, Founder of GMO Emerging Markets Equity, and Warren Chiang, Portfolio Manager, describe the compelling investment case for Beyond China in our latest Insights.

We are excited to make this Strategy available through our newest ETF, the GMO Beyond China ETF (BCHI), which launched today and is now trading on the NY Stock Exchange.

Note that Vietnam is the most attractive country to invest in.

[aleman] 22/1/2025 11:48:06

Saba to try shake up UK-listed trusts which trade at large discounts.

[31337 c0d3r] 30/12/2024 17:42:14

Finally back up to where we were 6 months ago. Hopefully this momentum will continue.

[aleman] 05/12/2024 09:34:14

Breaking out?


free stock charts from uk.advfn.com

[31337 c0d3r] 27/11/2024 09:38:53

Around 20 years ago many of these boards were buzzing with speculation Bill Gates was building a stake. It was always just ramping.

Fast forward 20 years, and we discover Bill Gates has actually built a hefty 15% stake in VEIL yet nobody seems to notice.

[shaker45] 13/11/2024 03:18:48

Very good overview

[31337 c0d3r] 12/11/2024 15:19:08

Doesn't seem right the director purchased £59,246.76 worth of shares the day before releasing this update.

[31337 c0d3r] 12/11/2024 15:04:08

RNS Number : 8660L
Vietnam Enterprise Investments Ltd
12 November 2024

12 November 2024

Vietnam Enterprise Investments Limited

("VEIL" or the "Company")

Quarterly Insights

VEIL is a London listed investment company investing primarily in listed equities in Vietnam and a FTSE 250 constituent.

Vietnam's Opportunities and Challenges in the Wake of Trump's Election Victory

Mr Tuan Le, Lead Portfolio Manager

The implications of Donald Trump's re-election for Vietnam's trade-driven economy are complex, with a potentially accelerated shift in US economic policy toward national competitiveness likely to inject volatility and uncertainty into emerging markets.

Equity Market Outlook

In the years leading up to the pandemic under Trump's first term, Vietnam's equity market delivered strong performance, with net profit growth reaching 19.1%. However, the unpredictability of Trump's policies and public statements heightened market volatility, leading to a discount on valuations despite underlying earnings growth. During this period, the VN Index achieved a compounded return of around 15%, slightly trailing profit growth due to those volatility concerns.

While Vietnam's economic and trade outlook remains relatively positive, supported by pro-growth domestic policies, the potential strengthening of the dollar could increase foreign selling in emerging markets in favour of US equities. Emerging markets, including Vietnam, may continue to see valuation discounts, as was the case during Trump's previous term.

Consequently, expected returns in Vietnam's equity market may lag earnings growth. While this risk is notable, the valuation of our Top-80 universe of stocks remains at 11.6x based on projected 2024 earnings, compared to the five-year historical average of 13.9x, suggesting limited room for further de-rating due to support from domestic investors seeking value. The extent to which Vietnamese investors can offset the potential continuation of foreign outflows, already over US$3 billion year-to-date, will be an important factor in the medium term.

Domestic interest rates can also play an important role in supporting local equity flows. Retail deposit rates for 12-month terms are at near all-time lows of approximately 5.7%, making term deposits less attractive compared to potential equity market gains, likely encouraging investors to favour equities. While rates are expected to stay stable as the government supports economic growth through a lower rate environment, potential shifts in Trump's renewed agenda could introduce additional uncertainties.

Currency Concerns

Exchange rate stability has been a focal point of US monitoring in recent years. In 2020, the US Treasury labelled Vietnam a currency manipulator, citing Vietnam's high trade surplus, a strong current account, and foreign exchange interventions. Although this designation was removed in 2021, Vietnam remains on the US Treasury's monitoring list.

To counter concerns about competitive devaluation, the Vietnamese government has taken clear steps to prevent excessive devaluation of the dong. Since 2022, the State Bank of Vietnam has deployed over US$20 billion in reserves to stabilise the currency, signalling its commitment to exchange rate stability and allay concerns over competitive devaluation.

Potential Impact of New Tariffs

Trump's election could reintroduce high tariffs and renegotiations of trade agreements, thereby amplifying market volatility but simultaneously enhancing Vietnam's role as an alternative manufacturing hub.

Trump's economic agenda, including tax cuts, deregulation, and increased deficit spending, may strengthen the dollar, which presents a mixed scenario for Vietnam's capital markets and export-oriented sectors. These sectors may face heightened trade barriers but could also benefit from redirected trade flows due to shifts in global manufacturing.

Among Trump's proposed policies are a 60% tariff on Chinese imports and an additional 10-20% tariff on imports from other trade-surplus nations. While a blanket tariff on all imports is unlikely given the potential impact on US consumers, we believe targeted tariffs on sectors with high export volume to the US may become a reality. Vietnam, with a strong presence in industries like electronics and textiles, may be at risk of such targeted measures.

To offset potential trade restrictions, Vietnam could work toward narrowing its trade surplus with the US by increasing imports of high-value goods such as aircraft, energy, and technology, contributing to a more balanced trade relationship. The government is also actively addressing transhipment risks, particularly for goods suspected of being re-routed through Vietnam to bypass US tariffs on Chinese products. For instance, Vietnam's Ministry of Industry and Trade has launched investigations into steel imports from China and South Korea to deter illegal re-export practices and reinforce its commitment to legitimate trade.

Implications for the Road Ahead

With China accounting for 32% of global manufacturing and Vietnam at 2-3%, Trump's re-election may prompt further shifts in supply chains away from China. As new trade barriers pressure Chinese exports, countries like Vietnam are positioned to benefit, much as they did during Trump's first term. However, this opportunity comes with a likely increase in scrutiny of Vietnamese goods, particularly in sectors with strong FDI links to China or those at risk of transhipment issues.

On balance, the outlook appears positive for Vietnam, with opportunities to capture a larger share of the global supply chain as production diversifies. Vietnam's government is expected to take proactive steps, drawing on experience to implement pre-emptive measures. This environment could provide momentum for key policy shifts, such as formal agreements with the US to clarify rules of origin, address transhipment concerns, and promote accelerated localisation within Vietnamese industries. Greater localisation would strengthen supply chain resilience and create the potential for domestic firms to move beyond OEM manufacturing toward capturing more value in direct-to-consumer markets.

[Table does not tabulate correctly in ADVFN posts. See original news article here]


Top Ten Holdings (59.4% of NAV)

Source: Bloomberg, Dragon Capital

NB: All returns are given in total return USD terms as of 30 September 2024



For further information, please contact:

Vietnam Enterprise Investments Limited

Rachel Hill

[31337 c0d3r] 12/11/2024 14:58:41

PDMR Notification


The Company has received notification that Sarah Arkle, a director of the Company, purchased 10,304 ordinary shares in the Company on 11 November 2024 at an average price of £5.74988 per share (for an aggregate price of £59,246.76).

Following this purchase, Sarah Arkle holds 20,000 ordinary shares in the Company.