Vinacapital Vietnam Oppo... Share Discussion Threads

[essentialinvestor] 04/10/2021 08:21

Discount to NAV around 22% now?.

[shaker44] 30/9/2021 11:08

Vnh still on high discount despite recent tender which gave successful shareholders about 30p per share on about half their holding. (bought all mine back right away)

[andyj] 30/9/2021 10:58

Good news, the most severe lockdown in the world is being withdrawn tomorrow and restrictions going forward are minimal. Life and business will quickly bounce back to normal.

[dpmcq] 24/9/2021 15:18

For Information -

As Chinese markets continues their collapse, driven initially by the heavy-handed treatment of technology stocks by the authorities and more recently by a collapse in overleveraged property stocks, investors seeking for better alternatives in Asia should look at Vietnam. VinaCapital Vietnam Opportunities Fund (VOF) is a good way to invest in the market.
Previously regarded as a ‘frontier̵7; market, Vietnam has recently been upgraded to emerging status by MSCI as it treads the same well-worn path to prosperity as other Asian countries like Taiwan and South Korea. Thanks to the pace of technological change, the
transformation of Vietnam from frontier to emerging and ultimately developed market is likely to be much quicker.
Half of the population of 97 million people is under 35 years of age, and as this cohort joins the expanding middle class over the next five to 10 years the
potential for economic growth is vast. The country has attracted strong direct investment from companies in China and around Asia as well as from the US and Europe.
According to the World Bank the economy is expected to grow by 4.8% this year, although this is two percentage points lower than originally estimated as government measures to contain Covid have hit consumer spending.
While vaccinations have been accelerated, Vietnam has the strictest lockdown measures
in South East Asia with all nonessential businesses shut in the capital Ho Chi Min City.
This pause in growth, and in the sharp rise of the Vietnamese market since March last year, is an opportunity for investors to get on board before the next leg up in 2022 when the economy is expected to resume its prepandemic growth rate of 7%.
VinaCapital Vietnam Opportunities Fund mainly invests in companies which are geared to domestic growth and the rise of the middle class, for example property companies and consumer goods producers. As well as quoted stocks, the fund is plugged into unlisted companies and private equity opportunities. It has benefited from the move from private to public in various holdings, creating substantial gains.
Shareholders are also getting dividends, with a 2.1% historic yield.
Despite generating more than double the returns of the MSCI
index over the last five years, the shares are trading at a discount of
more than 20% to their net asset value, which is more a reflection
of investor nervousness towards Asia and emerging markets in general rather than a judgement on Vietnam or the fund. The ongoing charge is 1.72%, higher than most global funds and reflecting its specialist skills in finding opportunities in the country.

[essentialinvestor] 24/9/2021 14:57

Article in th today's FT - some manufacturing companies warning that unless
Vietnam begin to loosen restrictions they will have to move capacity elsewhere.

More likely a threat expressing frustration than likely action following would expect.

[shaker44] 24/9/2021 14:41

Unless something dramatically bad happens, covid numbers will have zero impact on share price now.

[dickbush] 24/9/2021 13:42

8537 infections today, the lowest number since August 10th.

[robow] 24/9/2021 09:58

Shares magazine has VOF as a Great Ideas tip
'Strong track record and trades on a wide discount which doubles the appeal'

[dickbush] 13/9/2021 15:09

At the current rate of vaccination it will take until the end of the year to give the over-15's a jab. Hopefully, the rate will pick up. The "good" news is that daily infections seem to have peaked. The market will discount ahead at some point.

[shaker44] 08/9/2021 08:58

Vnh nav increasing and discount widened to 17.1%.

[andyj] 08/9/2021 04:27

Ignore the regurgitated propaganda from Hydrogen Economy. Here is the truth of what is really happening here.https://www.aljazeera.com/news/2021/9/7/in-vietnams-covid-epicenter-everyone-is-struggling-to-survive

[dickbush] 01/9/2021 18:32

Based on the 4 RNS' this afternoon We should see the discount narrowing.

[shaker44] 01/9/2021 11:17

Interesting to see if vnh tender shrinks its discount later this month. Nice gain for its 2 major shareholders assuming they tendered like most other holders

[dickbush] 01/9/2021 10:50

Assuming in-line with the market performance today, the shares are selling on a 21.6% discount at £4.50. VEIL'S are on a 15.0% discount. Odd.

VNH is also on a 15.0% discount.

[essentialinvestor] 25/8/2021 16:26

The above also has some financial commentary.


Had a small amount today with a view to adding lower, if available. Luck to holders

[shaker44] 25/8/2021 09:16

I agree with all of the above.
We are schooled in the belief that communism is bad but it ain't necessarily so.
So called democracies, such as thailand, are actually military dictatorships with rigged constitutions to keep incumbents in power.
I regard Vietnam as a sweet spot for investors, with a clear sighted government which drives its agenda forward, attracting foreign investment, and companies.
Even allowing for current covid issues, economic growth is expected to be higher than that achieved by most other nations

[hydrogen economy] 25/8/2021 08:51

Johnwig

Considering political complexion and authoritarianism, the Government risk for Vietnam is generally considered by foreign companies as very low relative to most emerging markets (and some developed markets). The CP ensures policy continuity compared with many countries in the region like Thailand, Phillipines, Cambodia, Malaysia, Indonesia and Myanmar. Several of these could teach Vietnam something about authoritarian rule.

Vietnam started well behind most of SEA thanks to US sanctions and pre 1989 policies, but have made rapid improvements in poverty, education and health. Since 1989 the government has been committed to the private sector and selling SOEs albeit with glacial bureaucracy.

If the Vietnam CP ever gave way to a pluralistic democracy, I doubt it would lead to a much more favourable environment for long term foreign investment and guess it would not be long before the military stepped in. They don't need to now as they have such a big say in the CP.

[hpcg] 24/8/2021 17:47

Companies are long duration assets and we've seen in developed markets that deep pocketed investors have looked through C19. On a macro level it looks like Vietnam is coping pretty well all things considered. NAV and share price are telling us that for now at least investors remain committed.

[shaker44] 24/8/2021 16:08

At last a return to investment matters. Thank you. I concur with your views. If not I would sell and move on.

[johnwig] 24/8/2021 16:02

Here's my take on all this. VEIL and VOF have been super shares for me. Some I had before Covid, others, most, I bought after March last year. Of course Covid has had a horrendous effect on everbody's life, and stock exchange movements have been extremely disturbing. However, specifically with Vietnam investment trusts, what we have is a secular investment in the fortunes of one country. This is a country rising up from some horrific circumstances. Don't forget that the market is still classified as a Frontier Market.

There are several assumptions that we have to make, not least that the securities held in both trusts represent a broad spectrum of the country's fortunes, its economy as a whole, and that the character of its people is as generally portrayed: worky and ingenious. There are other assumptions too.

However, if you can be hard-headed and hard-hearted, long-term in purely investment terms Covid should have very little effect on VOF and VEIL. It's fruitless to bicker about daily statistics. They don't in this context really matter. We have to assume that Covid will pass eventually for the whole world and that the rewards for hard work and ingenuity will accrue. A classic investment case.

I have deliberately not mentioned the political complexion of the current regime. For many its basically authoritarian bent is anathema. I share some fastidiousness. My own view, for what it's worth, is that the veritable material success of its people will soften regime attitudes. It's already happening...

[dpmcq] 24/8/2021 15:41

I have some similar experiences EssentailInvestor, as I guess do most.
The ICU unit really is a very frightening place for patients in there with Covid.
I am sure your wife has some very harrowing experiences with Covid patients.

People should not underestimate Covid as left uncheck it will and has killed hundreds of thousands of people worldwide. It is critical vaccines are shared around the world sooner rather than later. It takes one variant to be resistant to current vaccines and we are all back to square one....new pandemic.

I to hope 2022 brings us new medicines.

[essentialinvestor] 24/8/2021 15:17

My better half works in frontline healthcare and a number of friends work in
hospitals in both Surrey and the SE, it's been apparent for months that reinfections are happening.

Hopefully 2022 will bring new treatment options.
We may reach a stage where antivirals in tablet form can be prescribed
on diagnosis as an adjunct to vaccinations.

My partner has been with 7 people who have passed from COVID and it's not a nice way to go, however need to keep some perspective. Sepsis kills approx 50,000 in the UK alone each year, and hardly ever hits the headlines.

[essentialinvestor] 24/8/2021 14:06

I don't need to have a pop at other posters - good fortune.

[shaker44] 24/8/2021 14:00

Dpmcq: I doubt that is news to anyone on the planet but I am sure you were trying to be helpful. So, thank you.
Essential investor (what a misnomer) filtered long since, happily.