PYN Elite +1.8% in June, beating VN-Index’s sluggish performance -1.3%. Our aviation stocks continued to rally, ACV +18% and HVN +19%.
The National Assembly passed in the annual meeting the extension of the Value-added tax cut from 10% to 8% until the end of 2024 and the public sector’s wage reform. They also approved a change in the effective date of three amended Land, Housing, and Real Estate Business laws to August 1st this year, which will accelerate the real estate sector’s recovery.
President Putin was in Vietnam negotiating over cooperation in various fields including oil and gas, energy, and agriculture. A few days later, the U.S. assistant secretary of state also visited to reaffirm the Comprehensive Strategic Partnership between the U.S. and Vietnam.
The VND has depreciated 4.7% against the USD from the beginning of 2024, and keeping the exchange rate stable is now a top priority of the SBV.
Macro: In Q2, Vietnam’s GDP grew strongly +6.9% YoY, lifting first-half growth to +6.4%. The industrial and construction sector took the lead, increasing +8.3% YoY. The service sector followed, rising +7.1% YoY. The S&P Global Vietnam Manufacturing PMI jumped to 54.7 in June, from May 50.3. New orders recorded the sharpest increase since March 2011. Exports in Q2 +12.5% YoY and imports + 19.8% YoY. The U.S. has been the biggest exporter partner of Vietnam.
THE PYN Elite Stock of the Month: HVN
Vietnam Airlines (HVN) is the national flag carrier of Vietnam. The State still owns over 86% of HVN and recently allowed HVN to extend state-backed loan repayment of $160m for 3 more years at favorable conditions.
This year, HVN is expecting to record all-time high revenue and turnaround profit. HVN is Vietnam’s biggest full-service airline, and the domestic market is exclusively for Vietnamese airlines. HVN also owns many subsidiaries in the value chain of the industry and will divest some at a good price to reduce accumulated loss.
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The attached publication is marketing material and should not be regarded as a recommendation to subscribe or redeem units of the PYN Elite Fund. Before subscribing please familiarize yourself with the Key Information Document, the Prospectus and the Rules of the Fund. The material presented in this text is based on PYN Fund Management’s view of markets and investment opportunities. PYN Elite Fund (non-UCITS) invests its assets in a highly allocated manner in frontier markets and in a small number of companies. This investment approach involves a larger risk of volatility compared to ordinary broadly diversified equity investments. The value of an investment may decline substantially in unfavorable market conditions or due to an individual unsuccessful investment. It is entirely possible that the estimates of economic development or a company’s business performance presented in this presentation will not be realized as presented and they involve material uncertainties.