**Summary of Vietnam Holding Limiteds 2025 Annual Report**
**Overview**
Vietnam Holding Limited (VNH) released its 2025 Annual Report, highlighting its financial performance, strategic initiatives, and ESG (Environmental, Social, and Governance) commitments. The report covers the fiscal year ending June 30, 2025, and reflects the companys resilience amidst global challenges, including trade tariffs and geopolitical tensions.
**Financial Highlights**
**Total Net Assets**Decreased to USD 117.6 million from USD 140.2 million in 2024.
**Net Asset Value (NAV) per Share**Fell to USD 5.004 from USD 5.137 in 2024.
**Share Price**Dropped to 338.0p from 396.0p in 2024.
**Discount to NAV**Widened to 7.4% from 2.6% in 2024, with a further increase to -10.5% as of September 26, 2025.
**Ongoing Charges**Increased to 3.04% from 2.97% in 2024.
**Strategic Report**
**Investment Objective**Long-term capital appreciation through a diversified portfolio of high-growth companies in Vietnam.
**Investment Policy**Focus on publicly traded companies in Vietnam, with up to 25% in foreign companies with significant Vietnamese operations.
**Annual Redemption Facility**Successfully implemented, with 12% of shares redeemed in 2024 and 17.9% in 2025, demonstrating investor confidence and liquidity.
**Chairmans Statement**
**Global Challenges**US trade tariffs under President Trump impacted Vietnams exports, but proactive negotiations reduced tariffs from 47% to 20% on most items.
**Performance**NAV per share declined by 2.5%, underperforming the Vietnam All Share Total Return Index (VNASTR) gain of 9.8%. Share price fell by 7%.
**Long-Term Performance**Over five years, the Investment Manager delivered 17% compound annual growth in NAV, outperforming peers and the broader VN Index.
**ESG Commitments**Recognized with multiple awards, including Citywires "Investment Fund of the Year" and Investment Weeks "Investment Trust of the Year."
**Investment Managers Report**
**Economic Resilience**Vietnams GDP grew by 7.52%, a 15-year high, driven by infrastructure projects and FDI.
**Portfolio Adjustments**Increased allocation to the banking sector (35%) and consumer retail, particularly Mobile World Group (MWG) and FRT.
**ESG Integration**Continued focus on sustainability, with recognition for ESG efforts and a study on portfolio companies carbon footprint.
**Top Five Portfolio Companies**
1. **Mobile World Group (MWG)**Vietnams leading retailer, with a strong omnichannel strategy and focus on sustainability.
2. **Hoa Phat Group (HPG)**Leading steel manufacturer, expanding capacity with the Hoa Phat Dung Quat 2 Steel Integrated Complex.
3. **Techcombank (TCB)**Sixth-largest bank in Vietnam, focusing on digital transformation and green finance.
4. **Asia Commercial Bank (ACB)**Eighth-largest bank, known for its conservative approach and ESG leadership.
5. **Military Bank (MBB)**Fifth-largest bank, pioneering green finance and digital transformation.
**Sustainability Report**
**Global ESG Landscape**Mixed trends with stricter regulations in Europe and political resistance in the US.
**Vietnams ESG Momentum**Accelerated green growth strategies, including the National Green Growth Strategy 2021-2030 and the JETP.
**Corporate ESG Integration**Banking sector leading with sustainable loan frameworks and green credit reporting.
**VNHs Stewardship**Active engagement with portfolio companies to improve ESG practices, alignment with UN SDGs, and focus on climate-related disclosures.
**Business & Human Rights**
**Ethical Foundations**Integration of business and human rights principles into ESG strategy, focusing on labor rights and supply chain transparency.
**Alignment with International Standards**: Compliance with UN Guiding Principles on Business and Human Rights and OECD Guidelines.
**Principal Risks and Risk Management**
**Key Risks**: Market riskcurrency riskinterest rate riskcredit riskand liquidity risk.
**Mitigating Actions**Regular monitoring, diversification, and stress testing of financial forecasts.
**Governance**
**Board Composition**All Non-executive Directors, with a focus on independence and diversity.
**Committees**: Audit and RiskRemuneration and NominationManagement Engagementand ESG Committees.
**Shareholder Engagement**Active communication through AGMs, investor meetings, and digital platforms.
**Outlook**
**Economic Growth**Vietnam remains one of the worlds fastest-growing markets, with government targets of 8.5% growth in 2025.
**Market Upgrades**Potential FTSE Russell upgrade to Secondary Emerging Market status.
**Portfolio Strategy**Focus on domestic champions in sectors like industrialization, consumption, and urbanization.
**Conclusion**
VNH remains committed to delivering long-term value through a balanced and diversified approach to investing in Vietnams promising sectors, while upholding strong ESG and governance standards. The company is well-positioned to navigate both opportunities and challenges in Vietnams dynamic economy.
| Metric | 30 June 2025 | 30 June 2024 | Change |
|---|---|---|---|
| Total Net Assets (USD) | 117.6 million | 140.2 million | (16.1%) |
| Net Asset Value per share (USD) | 5.004 | 5.137 | (2.6%) |
| Net Asset Value per share (GBP) | 406.4p | 406.4p | 0% |
| Share price (pence) | 338.0p | 396.0p | (14.6%) |
| Discount to Net Asset Value (%) | 7.4% | 2.6% | 4.8% |
| Ongoing Charges (%) | 3.04% | 2.97% | 0.07% |
| Net (Loss)/Profit for the year (USD) | (2,850,696) | 26,522,608 | (110.8%) |
| Total Comprehensive (Loss)/Income for the year (USD) | (2,850,696) | 26,522,608 | (110.8%) |
| Basic and diluted (loss)/income per share (USD) | (0.11) | 0.97 | (111.3%) |
| Cash and cash equivalents (USD) | 4,524,725 | 2,894,425 | 56.3% |
| Total Assets (USD) | 118,440,329 | 140,391,198 | (15.6%) |
| Total Equity (USD) | 117,622,802 | 140,151,385 | (16.1%) |
| Total Liabilities (USD) | 817,527 | 239,813 | 240.9% |