VN-index +2.5% in March, led by large-cap stocks. PYN Elite outperformed at +2.6%, despite the VND weakening 2.1% against the USD. Vietnam’s average deposit rate continued to be lower, at the bottom for the past 20 years, putting more pressure on exchange rate.
The president resigned officially due to violation of the Party’s regulations. He was the second president to step aside in a little more than a year. Even though the role is “ceremonial”, this sudden change negatively affected market sentiment.
One of the biggest brokers in Vietnam fell victim to a cyber-attack. System restoration is in progress. No damage to customers’ assets has been reported.
March macro: Vietnam’s GDP increased +5.7% YoY in Q1, the strongest Q1 growth in the past 5 years. The service sector contributed +6.1% YoY and the manufacturing sector also grew +6.3% YoY. Exports flourished +17% YoY. Imports also increased +14% YoY. Trade surplus was robust at $8.1b (compared to $4.9b in Q1.2023).
FDI has been the highlight of the Vietnam macro situation. Registered FDI reached in Q1 $6.2b, +13.4% YoY.
PYN Elite Stock of the Month: VHC
VHC is Vietnam’s largest fish exporter, focused on Pangasius fillets. The main overseas markets are the US and EU. While Pangasius has been the target of many anti-dumping tax investigations in the US, VHC has been able to keep the tax rate at 0 for many years due to its sustainability and transparency. The company implemented a circular business model, from feed to by-products (collagen, fish oil, gelatin, etc.) to waste treatment. Last year, Covid overstocking led to weak demand and low export prices. 2024 is expected to be a recovery year for VHC.
Important information regarding the text and the Fund
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.