PYN Elite rose +4.0% in December, outperforming the VN-Index (+1.3%). The VND continued to weaken -0.4% compared to the USD. From the beginning of 2024, the VND has depreciated -4.8% against the USD. Despite the unfavorable forex conditions, PYN Elite finished 2024 at +21.8%, significantly outperforming the VN-Index (+12.1%). Our core holdings: STB + 32%, FPT +85%, ACV +91%, and HVN +134% contributed significantly to our performance.
2024 marked the political power transition following the passing of former Party Chief Mr. Nguyen Phu Trong. The new government announced the plan to merge and terminate several ministries and agencies to streamline and optimize the system.
After Nvidia’s Jensen Huang’s second visit to Vietnam, the Government set up the Investment Support Fund, which supports up to 50% of initial investment costs for businesses engaging in semiconductor and AI R&D projects.
Macro: Vietnam’s GDP +7.6% YoY in Q4, lifting full-year growth to +7.1%. In 2024, the industrial and construction sector had the strongest growth, +8.2% YoY, followed by the services sector +7.4%. Total exports increased to $405.5b (+14.5% YoY). Imports also accelerated to $380.8b (+16.7% YoY). The trade surplus was at $24.8b.
FDI disbursement achieved an all-time high at $25.4b. Singapore and South Korea were Vietnam’s leading sources of FDI.
Stock of the month – HVN
Vietnam Airlines (HVN) is the national flag carrier of Vietnam. HVN made a remarkable turnover in 2024. The estimated revenue was close to 115 trillion VND (approximately $4.5b) and profit before tax was over 7.3 trillion VND (appr. $280m). This result was an all-time high, surpassing pre-covid levels, even though the passenger numbers remained below 2019 levels.
Capital raising is scheduled for the second half of 2025. This will turn the owner’s equity from negative to positive by the end of 2025. HVN’s subsidiaries won several biddings for the new HCMC airport (Long Thanh). We expect another strong fundamental year for HVN and a meaningful presence in the new airport from 2027.