Annual Report
2025
LSE-listed investment company focused solely on Vietnam: the fastest-
growing economy in South East Asia. Invests in high-growth companies,
focusing on domestic consumption, industrialisation and urbanisation.
Capturing the growth of Vietnam through an actively managed,
high-conviction portfolio of companies.
Our Purpose
Our Vision
Owning a portfolio of companies with the potential to double their
underlying earnings over the next four to five years. Active stock
selection balanced between high-growth small-and-medium
companies and best-in-class blue chips. Seeking companies that
can benefit from enhanced valuations by following a trajectory of
better Environmental, Social, Governance practices.
Highlights
Company Overview
Summary Information
Chairman’s Statement
Investment Manager’s Report
Top Five Portfolio Companies
Sustainability Report
Business & Human Rights Report
Principal Risks and Risk Management
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3
5
7
11
17
23
24
Strategic Report
Contents
Independent Auditor’s Report
Statement of Financial Position
Statement of Comprehensive Income
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Alternative Performance Measures
Corporate Information
43
48
49
50
51
52
67
68
Financial Statements
Director Profiles and Disclosure of Directorships
Corporate Governance Report
Audit and Risk Committee Report
Directors’ Remuneration Policy and Report
Directors’ Report
Statement of Directors’ Responsibilities
27
28
33
35
37
41
Governance
Annual Report 2025
As at 26 September 2025 (the latest available date before
approval of the accounts), the discount to NAV had moved to
-10.5%. The estimated NAV per share and mid-market share price
at 26 September 2025 was 437.80 p and 392.0 p respectively.
Ongoing Charges
Ongoing charges for the year ended 30 June 2025 have been
calculated in accordance with the Association of Investment
Companies (the “AIC”) recommended methodology. The
ongoing charges for the year ended 30 June 2025 were 3.04%
(2.97% as at 30 June 2024). Refer to page 67 for the definitions of
Alternative Performance Measures (“APMs”) together with how
they have been calculated.
* Operating expenses per the financial statements less non-
recurring expenses of USD 58,393.
Average NAV
Operating Expenses*
Ongoing charges
Year end 30 June 2025 USD
125,427,7 17
3,813,159
3.04
a
b
b/a
Highlights
2025
117.6m
2024
140.2m
2025
5.004
2024
5.137
2025
365.2p
2024
406.4p
2025
338.0p
2024
396.0p
2025
7.4%
2024
2.6%
117.6m
Total Net
Assets (USD)
5.004
Total Net Value
per share (USD)
365.2p
Total Net Value
per share (GBP)
338.0p
Share
Price
7.4%
Discount to Net
Asset Value
Delivered 5-year compound annual growth of 17%
Outperformed VNAS index on 3, 5, 10 and 15 years
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Discount to NAV is the lowest of the peer group
Winner of Citywire’s ‘best emerging market
single country fund’ for second year running
Financial Highlights
Operational Highlights
Stategic Report
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Stategic Report
Focused
Investment
Approach
Portfolio of 25 companies with 68.2% in top-ten positions.
The portfolio has a price-to-earnings valuation of circa 11x
2025 earnings and an earnings growth forecast of 21.3%
Company Overview
Big enough to be an active and engaged shareholder in portfolio
companies, nimble enough to find and fund less known emerging
champions.
Right Size for the Vietnam Equity Market
The Company is able to invest in best-in-class names across the
spectrum of firm size with the flexibility to include pre-IPO, small-
mid caps and large caps in the portfolio.
Nimble Access Across Spectrum
High conviction, off-index positions managed by the Investment
Manager’s active ownership capabilities.
Actively Managed Portfolio
VNH is the first London-listed fund focussed on Vietnam to
introduce an annual redemption facility, whereby qualifying
investors can sell some or all of their shares on an annual basis at
NAV less any applicable fees.
Unique Redemption Feature
Since its early days the Company has been an active adherent
to best practice in Environmental, Social and Governance issues,
believing that better-managed companies on these dimensions
will be worth more in the longer-term. The Company has been a
signatory of the United Nations Principles for Responsible Investing
(“PRI”) for over a decade and received five-star scores in the recent
PRI Transparency report.
ESG in the DNA Market
London listed Investment Company established in
2006. Member of the FTSE All Share Index. Seeks to
achieve long-term capital appreciation by investing in
a diversified portfolio of companies in Vietnam that
have high growth potential at an attractive valuation.
Capturing the growth of Vietnam through long term
investment in an actively managed, high conviction
portfolio of companies.
Protect shareholder interests by aspiring to the highest
standards of corporate governance at both fund &
portfolio level.
VietNam Holding Limited
What VietNam Holding Limited Does:
The Company
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Vietnam Specialist, Citywire AAA rated Fund Manager,
regulated by the Guernsey Financial Services
Commission. Partner-owned business whose sole
focus is asset management. Appointed Investment
Manager on 16 July 2018.
Dynam Capital Ltd
Investment Manager
Top-down & bottom-up research
driven fundamental analysis.
Active engagement with portfolio companies on ESG.
Long-term investment horizon
What Dynam Capital Ltd Does:
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What Makes Us Different
Annual Report 2025
Summary Information
The Company
VietNam Holding Limited (the “Company”, the “Fund” or “VNH”)
is a closed-end investment company that was incorporated in the
Cayman Islands on 20 April 2006 as an exempted company with
limited liability under registration number 166182. On 25 February
2019, the Company, via a process of cross-border continuance,
transferred its legal domicile from the Cayman Islands to Guernsey
and was registered as a closed-ended company limited by shares
incorporated in Guernsey with registered number 66090. The shares
were admitted to trading on AIM in June 2006 and admitted to
the Main Market (previously the Premium segment of the Official
List) and admitted to trading in the Main Market of the London
Stock Exchange on 8 March 2019. The Company also listed on the
Official List of The International Stock Exchange on 8 March 2019.
The Company has an unlimited life with a continuation vote in 2028.
Annual Redemption Facility
The Company has introduced an annual redemption facility that
gives Shareholders an opportunity to realise their holdings through a
redemption of all or any of their Ordinary Shares on the Redemption
Point, provided that they held the relevant Ordinary Shares on
the date six months prior to the relevant Redemption Point and
continued to be beneficially interested in those shares at all times
since that date until the Redemption Point. The first Redemption
Point was on 30 September 2024 and every year thereafter. The
redemption facility has no impact on the going concern of the
Company. Refer to further details in the Directors ‘Report on page
37 and in the Notes to the financial statements on pages 52 to 53.
Investment Objective
The Company’s investment objective is to achieve long-term capital
appreciation by investing in a diversified portfolio of companies that
have high growth potential at an attractive valuation.
Investment Policy
The Company aims to achieve its investment objective by investing
in the securities of publicly traded companies in Vietnam, as well as
in the securities of foreign companies if a majority of their assets
and/or operations are based in Vietnam. The Company may invest
in equity securities or securities that have equity features, such as
bonds that are convertible into equity.
The Company may invest in listed or unlisted securities, either on
the Vietnamese stock exchanges or through purchases on the Over
the Counter (“OTC”) Market, or through privately negotiated deals.
The Company may invest its available cash in the Vietnamese
domestic bond market, as well as in international bonds issued by
Vietnamese entities.
The Company may utilise derivatives contracts for hedging purposes
and for efficient portfolio management but will not utilise derivatives
for investment purposes.
The Company does not intend to take control of any company or
entity in which it has directly or indirectly invested (the “Investee
up to 25% of its NAV (at the time of investment) in companies
with shares traded outside of Vietnam if a majority of their
assets and/or operations are based in Vietnam;
up to 20% of its NAV (at the time of investment) in direct
private equity investments; and
up to 20% of its NAV (at the time of investment) in other listed
investment funds and holding companies which have the
majority of their assets in Vietnam.
the Company will not invest in companies known to be
significantly involved in the manufacturing or trading of
distilled alcoholic beverages, tobacco, armaments or in
casino operations or other gambling businesses;
the Company will not invest more than 20% of its NAV (at the
time of investment) in the shares of a single Investee Company;
the Company will not invest more than 40% of its NAV (at the
time of investment) in any one sector;
the Company will not invest directly in real estate or real
estate development projects, but may invest in companies
which have a large real estate component, if their shares are
listed or are traded on the OTC Market; and
the Company will not invest in any closed-ended investment fund
unless the price of such investment fund is at a discount of at least
10% to such investment fund’s NAV (at the time of investment).
Borrowing Policy
The Company is permitted to borrow money and to grant security
over its assets, provided that such borrowings do not exceed 25%
of the latest available NAV of the Company at the time of the
borrowing unless the Shareholders in general meeting otherwise
determine by ordinary resolution.
Investment Restrictions and Diversification
The Company will adhere to the general principle of risk
diversification in respect of its investments and will observe the
following investment restrictions:
Furthermore, based on the guidelines established by the United
Nations Principles for Responsible Investment, of which the
Company is a signatory:
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Company”) or to take an active management role in any such
company. However, Dynam Capital, Ltd. (“Dynam Capital”), (the
“Investment Manager”) may appoint one of its directors, employees
or other appointees to join the board of an Investee Company and/
or may provide certain forms of assistance to such company, subject
to prior approval by the Company’s Board.
The Company integrates environmental, social and corporate
governance (“ESG”) factors into its investment analysis and
decision-making process. Through its Investment Manager, the
Company actively incorporates ESG considerations into its ownership
policies and practices and engages investee companies in pursuit of
appropriate disclosure and the improvement of material issues.
The Company may invest:
Annual Report 2025 Stategic Report
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the Company will not invest in companies known to be subject
to material violations of Vietnamese laws on labour and
employment, including child labour regulations or racial or
gender discriminations; and
the Company will not invest in companies that do not commit
to reducing in a measurable way pollution and environmental
problems caused by their business activities.
Any material change to the investment policy will only be made
with the approval of Shareholders by ordinary resolution.
Shareholder Information
Apex Fund and Corporate Services (Guernsey) Limited (the
“Administrator”) is responsible for calculating the NAV per
share and delegates this function under a legal contractual
arrangement to Standard Chartered Bank (Singapore) Limited
(the “Sub-Administrator”), previously Standard Chartered Bank,
Singapore Branch until its transference under the Banking Act on
13 May 2019. The estimated NAV per ordinary share is calculated
as at the close of business each business day by the Investment
Manager and published at close of business in Vietnam the same
day.
The monthly NAV is calculated by the Sub-Administrator on the
last business day of every month and announced by a Regulatory
News Service within 10 business days.
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Stategic ReportAnnual Report 2025
Chairman’s Statement
Dear Shareholder,
I am pleased to present this annual report for the financial year
ended 30 June 2025 – a period marked by global challenges,
regional resilience, and significant progress for Vietnam.
This year has been particularly turbulent for global investors,
with US President Donald Trump’s April trade tariffs adding to
uncertainty and causing a sharp retreat from risk assets. Markets
have since recovered a substantial amount of April’s losses, and
investors are again looking at emerging markets as they reassess
portfolio construction and consider a potentially weaker US dollar
along with lower US interest rates.
In the Interim Report, issued in March 2025, I said that “it is too
early to say what the new US administration (Trump 2.0) will
mean for Vietnam”. But now we have a much greater sense of
what this means - higher trade tariffs. Increased tariffs on its key
exports to the US will inevitably affect the country’s economy.
While Trump’s ‘Liberation Day’ reciprocal tariffs of 47% were
unexpectedly high, a series of proactive negotiations by the
Vietnamese authorities since April appear to have successfully
tempered them down to 20% on most items and 40% on
transhipped goods. Although the specifics about these terms
are not totally clear, Vietnam’s equity market has responded
positively.
In addition, beneath the trade war waves, there has been a strong
undercurrent of reform and development in Vietnam’s economy
that the Investment Manager believes will present considerable
benefits in the mid- and long term. I encourage you to read the
Investment Manager’s Report
, where the economic drivers and
impact on the stock market and the Company are explored in
greater detail.
During the first half of the year under review, a favourable reception
for the annual redemption feature helped to significantly reduce
the Company’s discount to NAV and the Company traded at a
premium for the first time since IPO, with the share price and NAV
hitting historic highs during the first half of the financial year.
Also, in November, the Board visited Vietnam and attended an
investor conference organised by the Investment Manager, where
we met several shareholders and prospective shareholders from
the UK, the US, Singapore, and Australia. We saw how interest in
the Company comes from a broad and diverse group of investors,
and on the back of this demand, the Company was able to issue
more shares - another first. Although the volume of shares issued
was modest, it paved a positive start to the second half of the
reporting year.
Nonetheless, in April particularly, the mood shifted as Trump’s tariff
announcements hit many investment companies’ share prices
hard and we saw discounts widen again. I am pleased to say with
a combination of selective buybacks and a continued programme
of investor meetings and updates by the Investment Manager, the
discount remains the narrowest of the peers by a large margin. The
Fund is also among the top third of UK investment companies with
no or low single-digit discounts in the UK. [Source AIC].
Fund NAV and Shareholder Returns
The equity market in Vietnam is driven by a vast and growing
domestic investor base, one that has a different risk profile and
investment horizon than foreign investors. Over the past several
months, although foreign investors have continued to be net sellers
of Vietnamese equities - including selling some blue chip stocks the
fund holds - the country’s 10 million domestic investors have been
rallying around a few key index constituent companies that are not
held in the Company’s portfolio. This bifurcation has impacted the
performance on a relative basis.
The Company’s Net Asset Value (“NAV”) per share fell by 2.5% in
the year under review. This compares to the Vietnam All Share Total
Return Index (“VNASTR”) gain of 9.8%. The share price fell by 7%
due to a combination of this decrease in NAV and the widening of
the discount to NAV.
The Investment Manager discusses the current level of relative
underperformance in the
Investment Manager’s Report
. However,
I must point out that over the past five years, the Investment
Manager has delivered an impressive average of 17% compound
annual growth in NAV after fees and expenses, showing strong
long-term outperformance against the market and its peers. The
Company has consistently over the course of the year, had the
narrowest discount of the three London-listed funds focused on
Vietnam, reflecting the robust performance over five years with
a total shareholder return of 117% compared to 68% for VEIL and
64% for VOF – and, indeed, 48% in dollar terms for the broader
VN Index.
First Annual Redemption and Positive Impacts
September 2024 saw the successful implementation of the
Company’s first annual redemption feature, which allowed
qualifying shareholders to redeem their shares for cash at NAV.
Annual Report 2025
Hiroshi Funaki Chairman
Stategic Report
5
Elimination of Discount to NAV
With investors turning their attention back to emerging markets
and therefore interest in the Company growing, the Board’s aim
is to continue to keep the discount under close control – ideally, to
eliminate it, and be able to issue more shares subject to demand.
The Investment Manager’s strategy can accommodate fresh
capital, and the Investment Manager is well-positioned to seize
emerging opportunities in Vietnam’s vibrant market, particularly
in sectors poised to benefit from structural growth drivers such as
urbanisation, industrialisation, and the burgeoning middle class.
Award-Winning Performance
At the end of 2024 we were honoured to receive multiple awards
recognising our dedication to delivering consistent returns,
adhering to our Environmental, Social, and Governance (“ESG”)
commitments, and continuing to fulfil our purpose for investment
excellence. We were awarded Citywire’s “Investment Fund of the
Year” in single-country emerging market category. We also won
Investment Week’s “Investment Trust of the Year” and the UK
Investor Magazine’s “Country Fund of the Year”.
In 2009, the Company became the first Vietnam-focused fund to
become a signatory of the United Nations Principles for Responsible
Investing (“PRI”). In the latest PRI Transparency Report, the
Company scored three 5 stars, which is far above the median in all
reported categories, with scores of 92% for Policy Governance and
Strategy, 93% under the listed equity (active) category, and 100%
for confidence-building measures.
These accolades are a testament to the quality of our team,
our disciplined approach to value investing, and the long-term
relationships we have built within Vietnam’s dynamic economy. We
are proud of these accomplishments, and they further motivate us
to continue seeking out the best opportunities for our shareholders.
Outlook
The Vietnamese government is dedicated to further developing the
country’s financial markets and has announced plans to create two
International Financial Centres in Ho Chi Minh City and Danang.
In May, the stock market’s infrastructure underwent a significant
upgrade with the official launch of the new KRX trading system.
As the Investment Manager highlights, the launch is a catalyst for
FTSE Russell to elevate Vietnam’s stock market from Frontier to
Secondary Emerging Market status as early as October 2025. This
would coincide with investors’ return to emerging markets, and
could bode well for fresh interest in the Fund. Notwithstanding the
second redemption window that closed on 31 August, where 17.9%
of the Company’s shares were redeemed, we are keen to see the
size of the Fund grow.
Hiroshi Funaki
Chairman
VietNam Holding Limited
30 September 2025
Economic growth in Vietnam has averaged 6.5% per annum over
the past 30 years, and the government is seeking to accelerate
this rate further. At 30 June, the Year-on-Year (YoY) GDP growth
hit a 15-year high of 7.52%. The government has recently raised its
target from 8 to 8.5% growth for 2025 and is going for double-digit
expansion thereafter. To meet this ambitious level of growth, it
has been ramping up meaningful reforms and regulatory efforts.
As part of a broader drive to enhance government efficiency and
improve policy responsiveness it recently reduced the number
of provinces from 63 to 34 and announced major reforms to
streamline the civil service and position the private sector more
centrally in its economic development plans. The government
is also focused on enhancing public infrastructure, and this will
have long-term benefits on the economy.
Vietnam is still one of the world’s most exciting growth markets,
and as always, we stay focused on building a resilient portfolio
capable of navigating both opportunities and challenges.
We are now entering the 20th year of the Company, and look
forward to celebrating this in 2026 with investors.
I would like to extend my sincere gratitude to all our shareholders
for their continued support and confidence.
Yours sincerely,
About 12% of the Company’s shares were redeemed. The positive
results of this process demonstrated both investor confidence and
our proactive approach to providing liquidity to shareholders. The
orderly nature of the redemption also highlighted the stability of
our underlying portfolio and its appeal among long-term investors.
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Stategic ReportAnnual Report 2025
Despite US President Donald Trump’s tariff turmoil, the economic
backdrop in Vietnam during the reporting period has been
one of resilience and adaptability. As the Chairman notes, the
government has ambitious plans to accelerate growth and has
put in place deep structural reforms to help set the stage. Plans
have been outlined to reduce the size of the civil service, and
from 1 July 2025 the number of provinces in the country has been
reduced from 63 to 34. The expanded metropolis of Ho Chi Minh
City now accounts for 25% of Vietnam’s GDP.
These deep shifts are part of a major reform plan, dubbed Doi
Moi 2.0. The first Doi Moi in the late 1980s opened Vietnam
up to international trade and attracted significant levels of
foreign direct investment to support manufacturing for export.
This eventually led Vietnam to become the China-plus-one
manufacturing location of choice, propelling exports to the USA
beyond USD 100 billion, and positioning the country - negatively
in President Trump’s view - as one of the top three contributors
to the burgeoning US trade deficit. Doi Moi 2.0 or ‘rising’ is about
growing the domestic economy, using public investment in
infrastructure to leverage the growth and achieve a velocity to
escape the middle-income trap.
Despite the recent volatility, the longer-term objectives of the
government could support Vietnam’s position as the highest
growth economy in the world. The structural reforms will unlock
new opportunities in the country and are expected to have a
longer-term beneficial growth on capital markets. Economic
growth does not automatically translate to uniform stock market
returns, and it is increasingly important to have deeper research
on the ground, and a nimble approach to stock selection and
portfolio construction.
Macro Overview and Key Economic Drivers
As mentioned earlier, Vietnam’s GDP growth reached 7.52% in the
six months to 30 June 2025, a fifteen-year high and the government
has raised its own target to 8% and renewed its focus on
expediting infrastructure projects—particularly in transportation,
Investment Manager’s Report
energy, and logistics. The level of public investment disbursement
in the six months to June is estimated at USD 10.5 billion, around
one-third of the full year target of USD 36 billion. Prior to 2020,
the average annual expenditure was around USD 13.4 billion.
Despite the chaos and uncertainty about tariff levels, Foreign
Direct Investment (“FDI”) in Vietnam remains robust. Registered
FDI reached USD 38 billion in December 2024, and the registered
level of FDI in the first six months of 2025 was USD 21.5 billion.
Disbursed FDI from January to June reached USD 11.7 billion, an
8.1% increase on the same period in the previous year.
Clearly uncertainty on relative trade tariffs delayed some
decisions on expanding foreign manufacturing capacity, and we
saw Vietnam’s PMI manufacturing index reach 48.9 at the end of
June, compared to a level of 53 a year ago (above 50 indicates
expansion). But once the uncertainty is resolved, even higher
levels of FDI are expected to flow in.
Sectoral Performance
As the Chairman mentioned in his statement, there has been a
bifurcation in the performance of some parts of Vietnam’s equity
market, and this has been driven by capital flows rather than by
underlying fundamental earnings’ quality. For the past twelve
months or so, more than USD 2 billion of foreign capital has left
the domestic equity market, and in the first few months of this
year, much of this outflow was concentrated in more liquid blue
chips, including several in our portfolio. The price-earnings ratio
of some of these stocks came to recent historic lows. On the other
hand, the active domestic investor base - comprising well over 10
million retail investors - has looked for nearer-term opportunities
in a few large index stocks, many of which are not in our portfolio.
As a result, the Vietnam All Share Index has rallied in spite of the
share sell-off in April.
April’s ‘Liberation Day’ tariffs affected sentiment in the market,
even though much of the market and much of the Fund’s portfolio
is tilted towards the domestic economy. The market experienced
Annual Report 2025
Craig MartinVu Quang Thinh Chairman and Managing DirectorCIO and Managing Director
Stategic Report
7
a 20% decline in value over the course of three trading days. Since
April, the market has recovered much of its losses.
During the year we took some profit in our top-position, FPT
Corporation, which is a leading IT and telecommunications
provider. Its share price declined by 10% this fiscal year. Some of
the decline is in anticipation of lower visibility on the pipeline of
large projects - as multinationals delayed Capex plans amidst
trade uncertainties. The decline is partly due to uncertainties
about the change in controlling shareholders in one of its
telecommunication divisions, with others concerned over the
impact of advances in AI on demand for outsourced software,
and how quickly its own AI ambitions can lead to more bottom-
line gains. The trimmed-down position in the portfolio has given
room for other stocks to lead our top holdings.
We believe the consumer retail sector will benefit from renewed
consumer confidence and a growing middle class looking for
higher-quality goods and services. We have been increasing our
portfolio weights in the retail sector, particularly in Mobile World
Group (“MWG”), a leading omnichannel retailer, and FRT, which
owns Long Chau, the country’s leading pharmacy chain. Despite
an increasingly positive outlook for several retailers, the sector
underperformed, and we remain overweight on it.
Although we have 35% allocated to banks, our position is
underweight in comparison to the index. Our banking picks have
outperformed the banking sector: Techcombank (“TCB”) rose
42.8%, Sacombank (“STB”) by 58%, MB Bank (“MBB”) by 30%
and VietinBank (“CTG”) by 31.8%. TCB is now our largest portfolio
holding and its share price has rallied on expectations of an
IPO of its stock-broking subsidiary. Banks continue to trade on
undemanding valuations and are expected to see higher credit
growth in 2025. By maintaining Net Interest Margins (“NIM”),
some will see earnings-per-share growth in excess of 20%.
Domestic investors showed strong interest in the conglomerate
Vingroup (“VIC”), a stock we do not hold, which saw its shares soar
126%. Vinhomes (“VHM”), its related party real estate company,
rose by 98.7% percent. VIC’s founder also owns the electric vehicle
(“EV”) manufacturer VinFast (NASDQ: VFS). Losses in the EV
business have weighed heavily on the group in recent times, as
there are several billion dollars of loans issued and guaranteed by
group companies, and VIC’s market capitalisation fell to about
USD 6 billion in January 2025. It has since risen to close to USD 17
billion. Aside from a position in VHM, the Fund has little exposure
to VIC.
Interestingly, as part of its strategy to support national
infrastructure development plans, Vingroup has created a new
subsidiary, VinSpeed, to develop high-speed rail solutions for
segments of the domestic railway network. This is consistent with
the government’s goal of having private capital play a role in
infrastructure development. A recent resolution of the National
Assembly has further affirmed this objective, and we believe the
private sector will be given even more prominence in the country’s
development. While this is encouraging for the momentum
of ‘chaebols’ like Vingroup, assessing the fundamental risk-
reward proposition of conglomerates can be challenging. If
Vingroup can successfully position its EV company in regional
automobile markets while also commercialising the high-speed
rail opportunities, then it could emerge as one of the largest non-
bank conglomerates in the ASEAN region.
Portfolio Adjustments and Investment Strategy
At the AGM in November 2024, shareholders approved a slight
adjustment to the investment restrictions in the Company’s
investment policy. These changes were designed to give greater
flexibility in portfolio construction, taking advantage of the
nimble, on-the-ground investment research. The investment
restrictions on a single sector were raised from 30% to 40%
and the restriction on a single stock was raised to 20%. We took
advantage of the former, lifting the allocation to the banking
sector to 35% (still below the index weight of 40%) but our largest
single stock exposure is a little over 11%.
Performance Highlights
Despite a five-year annualised outperformance of more than
5% against the index, this year we underperformed for reasons
outlined above. The Company’s full year NAV per share return
during the reporting period declined by 2.5% versus an index gain
of 9.8%. The elimination of the discount to NAV gave way to the
return of a small discount to NAV (5%). As a combined effect of
these factors, the share price decreased by 13.8%. Post-year end
the share price has increased by 16.9% (26 September 2025).
ESG Is Not Dead
Our approach to ESG integration has continued to deliver tangible
results, with our focus on sustainability contributing to both
the resilience and attractiveness of our portfolio. We have seen
increased recognition of our ESG efforts, as shown by the awards
received during the period. These accolades are an endorsement
of our commitment to responsible investing, and we are still
dedicated to embedding ESG principles across all aspects of our
investment process. To support this, we have also completed a
study with MSCI into the carbon footprint and transition readiness
of our portfolio companies.
In May we sponsored the third Vietnam ESG investor conference
in Ho Chi Minh City. The conference showed that investors still
believe in the relevance of ESG to Vietnam. Climate change is a
visible risk in Vietnam, with several uncharacteristically severe
storms hitting the north of the country this year. The Mekong
river, which pumps and feeds the rice growing area in the Mekong
Delta, also faces several longer-term ecological challenges. The
conference also highlighted opportunities to be climate-transition
ready; how meeting the EU’s requirements for exports raises the
quality of operations for some manufacturers, and how attention
to governance and responsible investing can set the ‘great’ apart
from the ‘good’.
8
Stategic ReportAnnual Report 2025
ESG Is Not Dead (continued)
Investment Manager’s Report (continued)
One of VNH’s board members, Ms Vu, is an acknowledged expert
on the ESG issues in Vietnam, and she has also contributed a
thought leadership piece on the issue of modern slavery, which is
included as part of the Market Reports.
Planes, Trains, and Automobiles - Urbanisation and the
Modernisation of Infrastructure
In the Interim Report, we mentioned that the Ho Chi Minh City
Metro system finally opened in December 2024, connecting several
parts of the city with a fast, affordable, and clean transport
alternative to cars and motorbikes. Ridership levels on the metro
have exceeded expectations, and it has gone from a novelty to a
daily part of people’s lives. The government also announced plans
in December for a new high-speed train to connect Hanoi and Ho
Chi Minh City, with the prospect of reducing the travel time along
the 1726 km train route from 36 hours to 5 hours when this multi-
year and USD 60 billion project is completed. In China, high-
speed trains routinely traverse the various cities at top speeds of
250 kmh, boosting local economies. Vietnam is a long, narrow
country, and is only connected by rail to China in the north by a
120 kmh service (a route which reopened for tourists in May, after
being closed since the pandemic). The Vietnamese government
has encouraged local conglomerates to participate in rail projects
in various parts of the country. These projects will invigorate the
communities they connect and also boost demand for domestic
steel and other construction materials. One way to take part in
this growth trend is through portfolio companies such as, Hoa
Phat Group (“HPG”), a domestic steel champion, and the largest
steel manufacturer in Southeast Asia.
Given the country’s geography and the slow road and rail
connection between the North and the South, the domestic
aviation route connecting Hanoi and Ho Chi Minh City is the
second busiest in the world. Domestic tourism and an influx of
foreign tourists - growing by 20% during the year to an historic
high - has put pressure on some of the airports. Travelling through
Ho Chi Minh City’s international arrival and departure terminal
can be painfully slow. Thankfully, the new international terminal
in Long Thanh - about 40 km east of downtown Ho Chi Minh
City - is taking shape and should be open for business in early
2027. There are a couple of ways to invest in the growth of the
aviation sector in Vietnam. One is through services - such as ACV,
an airport concession operator, or Saigon Cargo Services, a cargo
handler. The other way is to buy into the listed airlines - VietJet
and Vietnam Airlines. All of these have been portfolio companies
at various stages over the past five years.
As people become wealthier, consumption of automobiles has
increased historically. In China, as an example, total vehicle
ownership is approximately 322 per thousand people - half the
level of Europe. In Vietnam, the level is much lower, at 63 cars per
1000, and the streets are more populated by motorbikes (over 90%
of households own a motorbike). One of the changing dynamics
in Vietnam (as with China) is the emergence of electric vehicles.
For example, the city of Hanoi has recently planned to ban all
fossil-fuel motorcycles and mopeds from the central part of the
capital by 1 July 2026, and from the entire city by 2030. There
are a few ways to invest in the automobile sector in Vietnam,
one EV manufacturer is listed in NASDAQ (Vinfast: VFS), and a
few car distribution companies are listed in Vietnam. There are
also rumours of one of the country’s largest auto manufacturers
planning a future IPO. Given the furious global competition in
EVs, this is a sector we are not directly exposed to currently.
Outlook
Looking forward, when the dust settles on the trade tariff
negotiations, we are optimistic that Vietnam will keep its
position as a key China-plus-one manufacturing centre. Vietnam
is already looking to broaden and deepen its trade with other
countries to mitigate risks from trade flows. Vietnam will look
to support strong commercial ties with China and the US, as
both are important trading partners. The outcome will be a
delicate balance, as transshipment of goods from China to the
US via Vietnam appears to be firmly in the targets of the US
administration, and Vietnam is keenly aware of this.
Vietnam will still be one of the world’s fastest-growing markets,
even if it doesn’t meet its government’s growth targets. As it
looks to modernise its economy further, to develop more efficient
physical infrastructure, and to undertake long-lasting structural
reforms, a ‘same-same but different’ country may appear.
As the Chairman notes, next year marks the 20th anniversary
of the Company. Over the past twenty years, the country’s
capital markets have grown exponentially - the equity market
capitalisation has gone from USD 300m to USD 300 billion, and
average daily trade levels have gone from USD 1 million to USD
1 billion a day. There are now twelve companies with market
capitalisations higher than USD 5 billion (six are in our portfolio).
There have been genuine improvements in the stock market
operations, and the latest upgrade to the infrastructure was
made in early May with the installation of the KRX stock exchange
platform. The installation went smoothly and addresses some of
the concerns raised by agencies such as FTSE Russell and MSCI.
This may be the catalyst that helps secure an upgrade by FTSE
Russell to Secondary Emerging status which would see the capital
markets grow even more rapidly. The government has ambitious
plans to develop two International Financial Centres in Vietnam
(in Danang and HCMC), so the next twenty years promise to be
even more interesting.
The Company is well positioned for growth. We continue to be
nimble in stock selection and portfolio construction and have
doubled down on the domestic champions we believe will most
benefit from the long-term economic success story of Vietnam.
Our strategy is a simple one: find high-quality companies that
show strong governance, solid fundamentals, and significant
growth potential.
Annual Report 2025 Stategic Report
9
We believe that our active management approach, combined
with our deep understanding of the Vietnamese market, positions
us well to navigate both opportunities and challenges as they
arise.
Despite heightened volatility, both external and internal dynamics
of the economy are presenting opportunities and challenges for
the Fund. To achieve the ambitious target of 10% GDP growth
from 2026 onward, Vietnam will need reforms and stronger
growth drivers. We believe the key growth engines remain
intact, with the private sector poised to benefit. The Fund’s core
investment themes—industrialisation, domestic consumption,
and urbanisation—are further reinforced.
In conclusion, we are still committed to delivering long-term value
to the Company through a balanced and diversified approach to
investing in Vietnam’s most promising sectors. We appreciate your
continued trust and look forward to navigating the opportunities
that lie ahead.
Thank you for your continued trust and support.
Dynam Capital, Ltd
10
Stategic ReportAnnual Report 2025
About the Company
Founded in 2004 as a single mobile phone store, MWG has grown into Vietnam’s
most prominent modern retailer, leading both in revenue and number of
physical outlets (over 5,300 by mid-2025). Operating under core brands such as
Thegioididong, Dien May Xanh, Bach Hoa Xanh, TopZone, and AVAKids, MWG
today offers a comprehensive assortment of products ranging from consumer
electronics and groceries to personal care, pharmaceuticals, and baby goods.
MWG’s workforce has surpassed 70,000 employees, reflecting its continued
expansion nationwide.
As a market-making force in Vietnam’s modern trade sector, MWG redefined the
retail experience by testing new formats, leveraging data analytics for product
curation, and expanding its omni-channel infrastructure. MWG now holds a
dominant share exceeding 50% in mobile phone and consumer electronics
retailing. Meanwhile, its grocery chain Bach Hoa Xanh (“BHX”) has reached
profitability in 2024 after years of restructuring, and is now a key revenue and
margin contributor, especially in Vietnam’s Tier 2 and Tier 3 cities.
Recognising the accelerated shift toward online retail, MWG has made significant
investments in its e-commerce ecosystem, combining last-mile logistics,
warehouse automation, and customer-centric digital platforms. By 2024, online
sales accounted for nearly 10% of MWG’s total revenue. The company’s omni-
channel retail strategy, integrating physical retail with digital convenience,
remains a key competitive advantage.
Recent Developments
After a turbulent 2023 marked by an 18% revenue decline and a steep drop in
profits, MWG staged a strong comeback in 2024. Total revenue recovered to USD 5.1
billion, up 9% year-on-year, while after-tax profit rebounded more than 20 times
to reach USD 143 million, in line with management’s guidance. The turnaround
was driven by a strategic refocus on core business units, operational streamlining,
and improved consumer sentiment as Vietnam’s economy stabilised.
The ICT segment (phones, laptops, accessories) saw a rebound in both volume
and margin, aided by easing price wars and increasing demand for mid- to
high-end devices. Notably, MWG deepened partnerships with leading OEMs and
launched exclusive SKUs, enhancing profitability.
On the grocery front, BHX achieved its first full-year profitability in 2024
after restructuring its store network, improving SKU efficiency, and exiting
underperforming locations. With a new focus on neighbourhood-centric stores
and private label products, BHX has become a vital engine for MWG’s long-term
growth, particularly as Vietnam’s urbanisation and income levels continue to rise.
Looking ahead to 2025, MWG aims to cross the USD 5.6 billion revenue mark and
deliver over USD 184 million in net profit, supported by digital transformation,
Financial indicators (as at 31 December)VietNam Holding’s investment
Share information
20232024
Equity (USD million)
Revenue (USD million)
EBIT (USD million)
NPAT (USD million)
Diluted EPS (VND)
Revenue growth
NPAT growth
Gross margin
EBIT margin
ROE
D/E
Date of first investment
Ownership
Percentage of NAV
Internal rate of return (annualised)
Stock Exchange
Date of listing
Market capitalisation (USD million)
Free float
Foreign ownership
11 Sept 2017
0.3%
8.9%
7%
HOSE
14 Jul 2014
3,712.68
82.7%
48.11%
1,076.6
5,143.1
156.3
142.9
2,546
10.7%
2067. 7 %
20.5%
3.0%
14.5%
0.97
917.7
4,646.6
17.1
6.6
115
-17.9%
-96.2%
19.0%
0.4%
0.7%
1.08
Mobile World Group (“MWG”) - As at 30 June 2025
Top Five Portfolio Companies
AI-driven customer insights, and expansion into higher purchase-frequency
‘essential’ retail. The company also eyes potential regional expansion via the
export of retail know-how and cross-border e-commerce platforms.
Sustainability Strategy
MWG has implemented several key sustainability strategies to enhance its long-
term growth and operational efficiency, including community engagement (e.g.
promoting eco-friendly products and practices) and Circular Economy Initiatives
– MWG’s various brands have undertaken projects to reduce plastic waste and
promote recycling (e.g. collecting used batteries and recycling advertising
materials into organic fertilisers). The company prioritises its employees, followed
by customers and then shareholders. The performance-linked ESOP programs
of MWG have helped retain talented people in the company for several years
and have motivated some of the company’s ambitious top managers to seek
penetration into new market segments.
ESG Achievements
In 2024, MWG significantly advanced its environmental initiatives by installing
solar panels at over 600 stores and deploying Internet-of-Things (“IoT”) systems
in more than 1,700 locations to optimise energy consumption, underscoring its
commitment to renewable energy and operational efficiency. The company also
embraced circular-economy principles through waste-reduction programs and
responsible sourcing policies, coupled with transparent governance, including the
establishment of a dedicated ESG committee and the hiring of a full-time ESG
officer. MWG’s efforts earned it recognition among the Top 20 Companies with
the Best Sustainability Index in Vietnam and a place among the Top 50 in the
Corporate Sustainability Awards. On the social front, the corporation supported
communities impacted by Typhoon Yagi, donating 2,000 tons of rice and VND 5
billion in aid, demonstrating meaningful community engagement and disaster
relief responsiveness.
ESG Challenges
Despite these successes, MWG faces ongoing environmental and operational
challenges. With a network spanning thousands of stores nationwide, the
company remains exposed to physical risks from climate change, including
extreme weather events, which strain logistics and supply chain resilience. While
energy-saving installations are in place, achieving consistent energy efficiency
and scaling renewable strategies across all outlets will require significant
investment and coordination. Sustainalytics notes that MWG carries a medium-
level ESG risk score (~21.6), citing weaker management practices in addressing
these vulnerabilities relative to peers. Additionally, ensuring continued progress
in governance—such as maintaining board-level ESG oversight, improving supply
chain traceability, and formalising carbon reduction targets—remains a critical
area for development before performance aligns more fully with best-in-class
global standards.
Annual Report 2025 Stategic Report
11
About the Company
Established in 1992 as a construction machinery and equipment trading
firm, Hoa Phat Group Joint Stock Company (‘HPG’) has evolved into
Vietnam’s leading industrial manufacturing conglomerate, with its core
operations centered in the steel industry.
As of year-end 2024, HPG held the leading market positions in Vietnam’s
construction steel and steel pipe segments, with respective market
shares of 38% and 28%. The steel segment remains the Group’s principal
revenue and profit driver, accounting for 93% of total revenue and 86%
of net profit. The agriculture segment follows, contributing 5% of revenue
and 8% of net profit.
As of 31 December 2024, HPG has 74 subsidiaries with a workforce of
32,780 employees.
Recent Developments
In 2024, HPG reported revenue of approximately USD 5.3 billion and net
profit of USD 460 million, representing 13.8% growth in revenue and a
72.3% increase in net profit compared to the previous year.
HPG made notable progress on its key expansion project, the Hoa Phat
Dung Quat 2 Steel Integrated Complex, which covers an area of 280
hectares. Phase 1 commenced operations in Q1 2025, with full completion
targeted by year-end 2025. With a designed annual capacity of 5.6
million tons of hot-rolled coil (“HRC”) and a total investment of VND
85,000 billion (approximately USD 3.25 billion), the project will increase
HPG’s total crude steel capacity to 15 million tons per year. This capacity
milestone will position Hoa Phat among the Top 30 global steel producers.
In 2025, HPG has set ambitious business targets that reflect its confidence
in continued growth and operational expansion. The Group aims to
achieve revenue of VND 170 trillion, representing a 21% increase compared
to 2024 and net profit after tax of VND 15 trillion, marking a 25% increase
from the previous year. This growth will be driven primarily by the ramp-
up of its new capacity from the Hoa Phat Dung Quat 2 Steel Integrated
Complex.
Sustainability Strategy
As the largest steel producer in Southeast Asia, HPG is actively advancing
its sustainability agenda. The Company is investing significantly in deep-
processing technologies and R&D to produce hundreds of thousands of
Financial indicators (as at 31 December)VietNam Holding’s investment
Share information
20232024
Equity (USD million)
Revenue (USD million)
EBIT (USD million)
NPAT (USD million)
Diluted EPS (VND)
Revenue growth
NPAT growth
Gross margin
EBIT margin
ROE
D/E
Date of first investment
Ownership
Percentage of NAV
Internal rate of return (annualised)
Stock Exchange
Date of listing
Market capitalisation (USD million)
Free float
Foreign ownership
20 Jun 2013
0.1%
7.1%
37.9%
HOSE
15 Nov 2007
6,679. 21
59%
18.68%
4,389. 2
5,315.9
559.5
460.2
1,751
13.8%
72.3%
13.3%
10.5%
11.1%
0.72
4,039.9
4,673.1
379.9
267.1
1,005
-22.1%
-25.4%
10.9%
8.1%
6.8%
0.64
HPG Group (“HPG”) - As at 30 June 2025
tons of high-tech, specialised steel, including railway steel, train axle steel,
and other premium-grade products to support national infrastructure
projects and expand global exports.
HPG has adopted modern production technologies from G7 nations
to enhance efficiency, reduce energy consumption, and minimise
greenhouse gas emissions. In alignment with international trade and
environmental standards, particularly those of the EU, HPG has completed
a comprehensive greenhouse gas emissions inventory, marking a key
milestone in the Group’s long-term sustainable development roadmap.
ESG Achievements
Steel production is categorised as a carbon-intensive industry due to
its reliance on carbon-based fuels and reductants. HPG has invested
hundreds of millions of US dollars in equipment and technology for
environmental monitoring to keep pollutants under control and within
national standards. Hoa Phat has implemented modern closed-loop
production technology across all integrated iron and steel complexes. This
technology helps protect the environment, reduce CO2 emissions, and
ensures up to 90% energy self-sufficiency for production.
ESG Challenges
Despite this progress, HPG faces material ESG challenges, particularly
in emissions and climate risk governance. According to Sustainalytics,
the company is rated as “Severe Risk” (score: 50.5), placing it near the
bottom of its global steel peer group, largely due to limited disclosure and
weak management of material risks such as greenhouse gas emissions
and occupational safety. HPG remains heavily reliant on blast furnace-
basic oxygen furnace (“BF-BOF”) technology, which is carbon-intensive
compared to electric arc furnaces (“EAFs”) or DRI-based steelmaking.
While the company outlines long-term ambitions toward low-carbon
steel, it has not yet committed to science-based targets or joined
voluntary climate initiatives like the Science Based Targets initiative
(“SBTi”) or Responsible Steel. Moreover, Scope 3 emissions across
upstream iron ore logistics and downstream construction supply chains
remain largely unaccounted for. Governance-wise, while ESG oversight
has been introduced, independent board representation and gender
diversity remain limited, which may constrain broader ESG integration.
Maintaining competitiveness in a volatile steel market while transitioning
toward green production poses both financial and strategic headwinds.
Addressing these issues will be critical if Hoa Phat is to move from a
domestic ESG leader to a globally recognised sustainable industrial player.
12
Stategic ReportAnnual Report 2025
Financial indicators (as at 31 December)VietNam Holding’s investment
Share information
20232024
Equity (USD million)
TOI (USD million)
NPAT (USD million)
EPS (VND)
TOI growth
NPAT growth
ROA
ROE
CAR
NPL
Equity multiplier
Date of first investment
Ownership
Percentage of NAV
Internal rate of return (annualised)
Stock Exchange
Date of listing
Market capitalisation (USD million)
Free float
Foreign ownership
26 Mar 2024
0.1%
10.7%
10.3%
HOSE
4 Jun 2018
9,262.36
7 7. 3%
22.51%
5,663.7
1,799.0
824.0
3,049
14.3%
16.5%
2.4%
15.5%
15.3%
1.2%
6.6
5,170.5
1,573.8
707. 3
2,549
-8.4%
-17. 2%
2.4%
14.8%
14.3%
1.2%
6.5
Techcombank (“TCB”) - As at 30 June 2025
Top Five Portfolio Companies (continued)
About the Company
Founded in 1993, TCB is the sixth-largest bank in Vietnam by total
assets. It launched its IPO and was listed on the Ho Chi Minh City
Stock Exchange in 2018. As of 2024, TCB operated a network of 302
branches and transaction offices, with 11,848 employees, holding loan
and deposit market shares of 4.0% and 3.6%, respectively.
TCB has focused on investing in data and technology, which has made
it an industrial leader in terms of digital transformation. In 2016, it
was the first bank in the industry to launch the “E-banking zero fee”
program, which resulted in accelerating new customer acquisition,
significant operating cost reduction and high CASA. TCB applied Basel
II in 2019 and implemented Basel III in 2023.
In 2024, TCB accelerated the release of its first-in-market product
innovations – notably ‘Techcombank Auto-earning’ and ‘Techcombank
Auto-earning 2.0’ – thereby enhancing its unique offerings and creating
more data and AI-powered hyper-personalised experiences to deepen
retail and business customers’ engagements.
TCB’s credit rating was upgraded by FiinRatings to ‘AA-’, from ‘A+’ with
‘Stable’ outlook. It was awarded the first and only bank in Vietnam
to win “Best Bank in Vietnam” by Global Finance, Finance Asia and
Euromoney, all in a year. Other ratings were Ba3 by Moody’s, and BB- by
S&P Global Ratings, both with stable outlooks, positioning it as a top
performer among Vietnam’s joint stock commercial banks.
Recent Developments
In 2024, net profit after tax (“NPAT”) increased 16.5% YoY to USD 824.0
million, driven by strong credit growth.
Total credit surged 20.8% YoY, outpacing the industry. The bank has
strategically diversified lending beyond real estate and into sectors like
fast-moving consumer goods (“FMCG”), travel and leisure and utilities.
TCB continued to diversify its credit towards retail and small and
medium-sized enterprises (“SMEs”).
The non-performing loan (“NPL”) ratio was maintained at 1.17%,
ranking among the lowest in the industry. CASA ratio was 40.9%, the
highest ratio in the industry. Capital adequacy ratio (“CAR”) was 15.3%,
second highest in the industry, and a healthy coverage ratio of 113.8%.
Sustainability Strategy
With the vision of “Change banking, change lives,” TCB is dedicated
to empowering individuals to reach their full potential. The bank is
committed to delivering greater value to customers and shareholders
by offering innovative, customer-centric solutions. TCB’s mission is
to lead the digital transformation of the financial industry, helping
individuals, businesses, and corporations grow and thrive sustainably.
ESG Achievements
TCB has deepened its ESG integration by embedding sustainability
across strategy, operations, and financial solutions. In 2024, the bank
issued its first Green Bond Framework—Vietnam’s first from a private
bank - backed by an S&P “medium green” rating and targeting up
to USD 5 billion in green financing over time. On operations, TCB’s
LEED Gold-certified head offices in Hanoi and HCMC cut energy
use by ~26%, while digital transformation helped reduce paper and
transportation waste. Community engagement remained robust: the
“Run for a Greater Vietnam” initiative -supporting HCMC and Hanoi
marathons - attracted around 30,000 runners, while VND 205 billion
was donated to social causes. Staff-led campaigns such as winter tree
planting with Gaia Conservation further demonstrate the cultivation
of an ESG culture.
ESG Challenges
Despite strong momentum, TCB must navigate key challenges to
ensure ESG leadership is sustained. While green lending and bond
frameworks are robust, measuring, reporting, and managing associated
environmental impact - especially upstream emissions from financed
projects - remains complex, requiring enhanced ESG risk assessment
across credit portfolios. In governance, although ESG responsibilities
are assigned to board committees and senior executives, transparency
around performance KPIs, independent oversight, and alignment with
frameworks like TCFD or SBTi could be improved.
Annual Report 2025 Stategic Report
13
Financial indicators (as at 31 December)VietNam Holding’s investment
Share information
20232024
Equity (USD million)
TOI (USD million)
NPAT (USD million)
EPS (VND)
TOI growth
NPAT growth
ROA
ROE
CAR
NPL
Equity multiplier
Date of first investment
Ownership
Percentage of NAV
Internal rate of return (annualised)
Stock Exchange
Date of listing
Market capitalisation (USD million)
Free float
Foreign ownership
9 Oct 2020
0.2%
7.1%
20.8%
HOSE
9 Dec 2020
4,194.23
87.9 %
29.77%
3,195.3
1,283.1
642.8
3,669
-0.3%
2.0%
2.1%
21.8%
11.8%
1.5%
10.4
2,787.5
1,286.4
630.3
3,559
5.4%
8.6%
2.4%
24.8%
12.5%
1.2%
10.1
Asia Commercial Bank (“ACB”) - As at 30 June 2025
About the Company
Founded in 1993, ACB is currently the eight largest bank in Vietnam
by total assets. It was listed on the Hanoi Stock Exchange in 2006 and
transitioned to the Ho Chi Minh Stock Exchange in 2020. As of 2024, it
had a network of 388 branches and sub-branches and 11,614 employees
with loan and deposit market shares of 3.7% and 3.6%, respectively.
ACB is known for its conservative and prudent approach, with a strong
focus on the retail and SME segments, which make up 66% of its loan
portfolio. The bank maintains limited exposure to the real estate sector,
with loans to property developers accounting for less than 5% of total
lending.
ACB adopted Basel II standards in 2019 and began implementing Basel
III in 2023. It has also been a pioneer in sustainable development,
demonstrating strong environmental commitments. Notably, ACB
was the first bank to publish a standalone ESG report, underscoring its
leadership in responsible banking.
Fiinratings ranked ACB with a Long-term issuer credit rating of “AA+”
and a “Stable” outlook. In 2024, Moody’s assigned ACB a long-term
issuer default rating of Ba3 with a stable outlook. Fitch Ratings raised
ACB’s outlook on long-term currency IDR from Stable to Positive. It was
rewarded as Best Retail Payment Initiative – Visa Card with Apple Pay by
The Asian Banker, Best Commercial Bank Vietnam 2024 by International
Banker (UK), and Best Corporate Bank Vietnam 2024 by Global Banking
and Finance Review.
Recent Developments
In 2024, ACB’s net profit after tax (“NPAT”) rose modestly by 2.0%
YoY, reaching USD 642.8 million. Total credit and deposits saw strong
growth, increasing by 19.1% and 19.4% YoY, respectively.
The non-performing loan (“NPL”) ratio was maintained at 1.5%, among
the lowest in the industry. Capital adequacy ratio (“CAR”) was 11.8%,
higher than the minimum rate required by Basel II regulations.
Sustainability Strategy
ACB remains steadfast in its commitment to sustainable development
strategy. ACB sets pioneering goals by integrating and complying with
sustainable development orientations committed by the Government
at COP26 as well as the sustainable development guidelines by the
State Bank of Vietnam’s Green Banking Project.
ESG Achievements
ACB has positioned itself as an ESG pioneer in Vietnam’s banking
sector, being the first bank in the country to release a standalone ESG
report—initially in 2023—demonstrating early and public commitment
to sustainability. In 2024, ACB introduced a dedicated Green/Social
Credit product package, tying loan policies to sustainability criteria
and expanding financing options for environmentally friendly and
socially impactful projects. The bank has also set public ambitions
toward achieving net-zero emissions, aligning financial practices with
green values and stakeholder expectations. On social aspects, ACB’s
community financing focuses on supporting SMEs, green energy
solutions, and inclusive economic development, backed by digital
innovations which improve access to financial utilities and efficiency for
corporate customers. Governance structures supporting these efforts
include increased ESG disclosure, although still evolving, reflecting a
high level of transparency and early integration of sustainability into
core banking practices.
ESG Challenges
Despite early leadership, ACB still faces critical ESG challenges. The
transition to net-zero hinges on robust measurement and disclosure
of emissions—especially Scope 3 emissions from financed activities—
alongside clear interim decarbonisation targets and verification
methods, which remain under development. While the Green/Social
Credit package is promising, the criteria for evaluating and monitoring
financed projects need further formalisation to guard against claims of
greenwashing and to ensure high-quality impact. Moreover, extending
operational efficiency and sustainable practices across all branches and
services will require substantial investment and cultural change.
As competitors and regulators intensify ESG expectations, sustaining
early-mover advantages will demand deeper, outcome-based
integration into risk assessment, product design, and corporate
strategy.
14
Stategic ReportAnnual Report 2025
Financial indicators (as at 31 December)VietNam Holding’s investment
Share information
20232024
Equity (USD million)
TOI (USD million)
NPAT (USD million)
EPS (VND)
TOI growth
NPAT growth
ROA
ROE
CAR
NPL
Equity multiplier
Date of first investment
Ownership
Percentage of NAV
Internal rate of return (annualised)
Stock Exchange
Date of listing
Market capitalisation (USD million)
Free float
Foreign ownership
25 May 2017
0.2%
7.8%
15.1%
HOSE
1 Nov 2011
6,035.37
68.7%
23.24%
4,481.5
2,121.4
866.5
3,724
14.2%
6.7%
2.2%
21.5%
11.8%
1.6%
9.6
3,799.3
1,858.4
812.3
3,164
-3.9%
9.6%
2.5%
23.9%
10.8%
1.6%
9.8
Military Bank (“MBB”) - As at 30 June 2025
Top Five Portfolio Companies (continued)
About the Company
Founded in 1994, MBB is the fifth largest bank in Vietnam by total
assets. It listed its shares on the Ho Chi Minh City Stock Exchange in
2011. As of 2024, MBB operated 320 branches and transaction offices,
employed 18,639 staff, and held loan and deposit market shares of 5.0%
and 4.9%, respectively.
MBB has committed to its vision of becoming a “Digital Corporation
and Leading Financial Group,” with a strong focus on sustainable
development, improving operational quality, and pursuing long-term
strategic investments.
MBB earned several prestigious recognitions, including being ranked
Top 3 among commercial banks by profit and Top 2 strongest brands
in Vietnam. It is also recognised as one of the few banks in the country
with a fully integrated and synchronised digital ecosystem. Key awards
and accolades include ‘Best FX Bank in Vietnam’ by The Asian Banker,
‘Outstanding Bank in Green Credit’ by International Data Group
(“IDG”), ‘Top 25 Leading Listed Brands’ by Forbes, and a Credit rating of
BB with a Stable outlook from Fitch Ratings.
Recent Developments
In 2024, net profit after tax (“NPAT”) grew by 6.7% YoY, reaching USD
866.5 million. Total credit rose by 24.5% YoY, while customer deposits
increased by 20% YoY. The CASA ratio stood at 39.3%, one of the
highest in the industry. Credit quality remained solid, with a low non-
performing loan (“NPL”) ratio of just 1.4%.
Profitability indicators remained high with ROE of 21.5% and ROA of
2.2%, reaffirming MBB’s top-tier position in the industry.
Sustainability Strategy
MBB has reinforced its pioneering role in ESG initiatives, spearheading
the green finance movement, implementing social responsibility
programs, and enhancing risk management in line with international
standards. In 2025, MBB executed a brand strategy under the message
“Sustainable – Modern,” embedding ESG into long-term operations,
strengthening governance to international standards, and reducing
costs and non-performing loans.
ESG Achievements
MBB has made substantial progress embedding sustainability into its
digital transformation and operational models. In 2023, it digitised nearly
100% of internal processes and transactions—reducing paper usage
dramatically—and introduced the “Hi Green” campaign, empowering
customers to plant trees via its app and raising VND 8.1 billion to convert
landfills into community eco spaces. By mid-2024, green credit reached
VND 63.6 trillion (≈9.5% of total lending), focusing on renewable
energy, clean industries, and sustainable agriculture. MBB also received
recognition as a “Sustainable Workplace” and “Best Place to Work in
Asia” by HR Asia. Governance integration has been reinforced through
clear ESG oversight, evident from its dedicated sustainability strategy
aligned to UN SDGs and board-level ESG steering.
ESG Challenges
Despite notable strides, MBB must address several ongoing ESG
challenges. With green lending making up under 10% of its portfolio,
further scaling of sustainable financing requires deeper sectoral
diversification and robust impact measurement frameworks. While
internal digitalisation cuts resource use, tracking environmental
footprints - like carbon emissions from operations and financed projects
(Scope 3) - is still nascent. Strengthening strict ESG risk management
within credit policies, including binding environmental criteria and
long-term targets, remains necessary. Additionally, as MBB expands
its business, especially in banking and bancassurance, aligning growth
with sustainability, managing climate risk exposure, and adapting to
evolving regulations will be increasingly critical.
Annual Report 2025 Stategic Report
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Stategic ReportAnnual Report 2025
Global context: Navigating a Complex ESG Landscape
The second half of 2024 and the first half of 2025 were characterised
by a growing divide in the global ESG landscape. Europe continued
to lead, with stricter regulations, including the initial phase of
Corporate Sustainability Reporting Directive (“CSRD”) disclosures
and increased scrutiny of greenwashing related to ESG ratings.
Conversely, the US faced rising political resistance, with several
states pulling back ESG mandates, leading to outflows from US-
based sustainable funds. Despite this growing divide, green, social,
and sustainability-linked bond issuance reached a record USD
1 trillion worldwide in 2024, an 11% rise year-on-year. However,
issuance slowed noticeably in early 2025, dropping around 32%
YoY amid interest rate pressures, geopolitical risks and changing
investors’ attitudes towards ESG.
Statistics indicate that support for ESG-focused resolutions among
institutional investors has decreased, particularly in the US. The four
largest asset managers worldwide—BlackRock, Fidelity Investments,
State Street, and Vanguard—are all based in the US and collectively
manage USD 23tn (£18tn) in assets. They showed very limited
support for ESG proposals, endorsing only 7% of shareholder
resolutions in 2024. In contrast, UK and European investors
supported 81% of ESG resolutions, highlighting regional differences.
However, in Europe and parts of Asia, sustainable finance continued
to expand, especially in climate-focused investments and impact
funds. In 2024, the European Union reported approximately €6.6
trillion in ESG assets under management, representing 38% of the
total €17.2 trillion in assets managed within the EU. This substantial
share underscores the region’s strong commitment to integrating
ESG considerations into investment strategies. Additionally, in 2024,
impact investments allocated to Asia reached approximately USD
80 billion, a notable increase from USD 51 billion in 2019, signalling
growing interest in the region among global investors. Remarkably,
89% of Asia-focused impact investors reported that their financial
returns were outperforming or in line with expectations, and
88% expressed satisfaction with their impact outcomes. Looking
forward, 49% of global investors plan to increase their allocations to
Southeast Asia in 2025, while 60% of Asia-focused investors intend
to expand investments in East Asia, reflecting confidence in the
region’s sustainable investment opportunities.
Corporate Strategy Adjustments
In 2024, many major corporations reassessed and, in some
cases, scaled back their Environmental, Social, and Governance
(“ESG”) commitments due to financial pressures and political
uncertainties. For example, HSBC delayed its net-zero greenhouse
gas emissions target for operations and supply chains from
2030 to 2050, citing difficulties faced by suppliers in meeting the
original deadline.
In the US, during the Trump Administration, prominent companies
such as Amazon, Google, Walmart, and Meta have scaled back or
ceased their diversity, equity, and inclusion (“DEI”) programmes,
influenced by political pressures and executive orders aimed at
dismantling federal DEI initiatives.
Sustainability Report
Despite these corporate adjustments, consumer demand for
sustainable and responsible business practices remains strong.
A 2024 survey by Euromonitor International showed that 45% of
global consumers try to have a positive impact on the environment
through daily actions. Consumers expect corporate climate
initiatives and seek transparent proof to build their trust. As they
carefully examine the entire product lifecycle from sourcing to
disposal, choosing credible claims of carbon reduction will be vital
in convincing sustainability-focused consumers. Another survey
by PwC, involving over 20,000 consumers from 31 countries and
territories, revealed that 85% of consumers are directly affected by
the disruptive impacts of climate change in their daily lives and are
prioritising consumption that incorporates sustainability-focused
practices. Consumers are prepared to spend an average of 9.7%
more on sustainably produced or sourced goods, even as concerns
about the cost of living and inflation persist.
Technology’s Role in ESG
The integration of AI technologies into ESG frameworks is transforming
how organisations approach sustainability. AI’s ability to analyse
large volumes of data allows companies to gain deeper insights into
their environmental impact, optimise resource use, and forecast
future sustainability trends. This year, AI has played a crucial role in
enhancing the accuracy and efficiency of ESG reporting by providing
real-time data analytics and enabling predictive modelling. These
capabilities not only improve operational efficiency but also help
companies proactively address potential ESG risks. Furthermore,
the shift towards data-driven ESG practices represents a significant
change in how organisations manage and report their sustainability
efforts. By leveraging advanced data analytics, organisations can
monitor and evaluate their ESG performance more accurately.
This data-centric approach fosters better decision-making,
ensures compliance with regulatory requirements, and enhances
transparency. Through adopting comprehensive data analytics,
companies can identify areas for improvement, benchmark their
performance against industry standards, and communicate their
sustainability successes more effectively to stakeholders.
Vietnam context: Sustaining Green Growth Momentum
Unlike global headwinds, Vietnam’s ESG momentum continued
to advance into late 2024 and early 2025. The government
sped up the rollout of the National Green Growth Strategy
2021–2030 and its Resource Mobilisation Plan under the Just
Energy Transition Partnership (“JETP”). Key milestones included
Vietnam’s first blue bond in 2024, supported by the International
Finance Corporation (“IFC”), the debut of sustainability-linked
bonds, and the pilot phase of the national carbon market. The
country also obtained its first funding under the JETP, with the
French Development Agency (“AfD”) providing €67 million to the
National Power Transmission Corporation (“EVNNPT”) for major
transmission projects.
Vietnam also upheld its “green carpet” FDI strategy, aligning
renewable energy infrastructure, regulatory reforms, and preferential
policies to attract high-quality sustainable manufacturing
Annual Report 2025 Stategic Report
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investment. This approach enhances Vietnam’s potential to become
a low-carbon supply chain hub in Asia.
Over the past three years, Vietnam has continued to bolster its
legal and regulatory framework to speed up nationwide green
transformation. Key developments include:
National Strategy on Green Growth 2021–2030 (Vision to
2050) integrates green growth objectives into national and
provincial economic planning, emphasising sustainable urban
development, energy efficiency, renewable energy, and solid
waste management.
Law on Environmental Protection (Revised 2020) enhances
environmental management and pollution control while
promoting corporate environmental responsibility.
Decision 687/QD-TTg (2022) – Circular Economy
Development Project establishes a national roadmap for
transitioning to a circular economy, aligning industrial growth
with resource efficiency.
Vietnam’s commitment to achieve net zero by 2050 (COP26
pledge) aligns the country with global climate objectives and
supports regulatory measures for decarbonisation initiatives.
Power Development Plan VIII (2021–2030, Vision to 2050)
approved in 2023 and revised in 2025, sets ambitious targets
for expanding renewable energy capacity, especially solar and
wind, while phasing out coal-fired generation.
Vietnam Green Taxonomy (2025) Officially launched in July
2025, Vietnam’s inaugural green taxonomy establishes a
standardised classification of sustainable economic activities
for banks, investors, and corporates, aligning capital flows
with the national green growth and net-zero roadmap.
Hanoi and Ho Chi Minh City adopted initial directives for
the transition to electric vehicles in public transport fleets
and to incentivise EV adoption in urban areas, marking the first
step in Vietnam’s wider sustainable mobility strategy.
Decree 06/2022/NĐ-CP establishes frameworks for reducing
GHG emissions and protecting the ozone layer, including
measurement, reporting, and verification (“MRV”) systems.
Decree 119/2025/NĐ-CP introduces a domestic carbon market
mechanism, establishing the basis for emissions trading and
corporate carbon pricing.
Continue to measure and track the portfolio’s carbon footprint
to identify carbon-intensive sectors, incorporate climate
risks and opportunities into our broader risk management
framework, and pinpoint investment opportunities in low-
carbon sectors.
Improve our climate-related disclosures in accordance with
the guidelines of the Task Force on Climate-related Financial
Disclosures, and ensure disclosures align with the policies of
the Task Force on Nature-related Financial Disclosures.
Encourage companies in the portfolio to measure their
total carbon emissions and to develop a decarbonisation
roadmap.
Incentives & Support Policies (Resolution 68/2022/NQ-CP
and Resolution 198/2025/NQ-CP) provide tax incentives,
preferential loans, and feed-in tariffs for renewable energy
development, alongside support for green finance instruments
and ESG disclosure standards.
At the corporate level, ESG integration progressed rapidly, driven
by export market demands and free trade agreement (“FTA”)
commitments. The banking sector led with new sustainable loan
frameworks and the disclosure of green credit proportions, including
CTG reporting 3.2% of total credit exposure in green finance and
ACB launching a VND 2,000 billion green/social credit package.
Overall, as of 30 September 2024, 50 credit institutions held green
outstanding loans, totalling VND 665 trillion, representing 4.5% of
total outstanding loans.
These developments emphasise Vietnam’s commitment to
integrating sustainability into policy and private-sector practices,
progressing steadily towards its net-zero 2050 pledge despite
global ESG turbulence.
The Fund’s stewardship role
As a long-term, responsible investor, ESG integration has always
been central to our investment philosophy. With our motto “do
more, measure more and report more,” we have continually
advanced in our ESG journey. VNH has been a signatory of the
Principles for Responsible Investment (“PRI”) since 2009, while the
Investment Manager, Dynam Capital, also became a signatory
in 2022. Our PRI Transparency Report has consistently received
5-star assessment scores across our reporting modules over the
years. Additionally, we supported a highly successful Vietnam
ESG Investor Conference 2025 as a Programme Partner. We have
proactively engaged with companies to improve the ESG practices
of investee firms, highlighting those with exemplary standards.
Identifying the implications of climate change is a vital global
issue that impacts all sectors. We support Vietnam’s government
and business sector efforts to tackle climate change and its
socioeconomic effects. During the financial year, the Investment
Manager has worked closely with companies to assist them in
preparing their ESG and carbon footprint reports. We are pleased
to note that the number of portfolio companies reporting their
total carbon emissions has increased this year, especially as some
decided to do so following our engagement meetings.
As we move towards a net-zero world, VNH has outlined key
focus points for climate change initiatives over the next two
years:
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•
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Stategic ReportAnnual Report 2025
VNH’s task force on TCFD
In 2025, the Investment Manager signed an agreement with MSCI, a leading global provider of ESG and climate data services, to improve the
portfolio’s carbon emissions tracking and climate-related risk assessment. This collaboration introduced a sophisticated digital platform that
enables near real-time monitoring of portfolio emissions and offers more comprehensive climate and nature-related analytics. The initiative
also supports the portfolio’s alignment with the Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations by enhancing
scenario analysis, refining climate risk reporting, and integrating transition and physical risk considerations into the investment process. It also
helps raise the standard of climate-related disclosures among asset managers in Vietnam and aligns with our motto to “do more, measure
more, and report more”.
Leading sustainable governance
VNH’s board publicly supported the Paris Agreement and TCFD in 2021. During the Annual General Meeting that year, the board also endorsed
a climate belief statement, which was subsequently published via a media release and the Fund’s website.
Furthermore, the Company’s ESG Committee has been collaborating closely with the Investment Manager to improve its investment strategy
by thoroughly integrating climate-related risks and opportunities into the investment process and risk management approach.
Sustainability issues are also included in reports sent to investors. Board members and directors of the Investment Manager have attended
seminars and training sessions in the UK and Asia on climate and sustainability topics, and they continue to promote greater adherence and
cooperation. The Investment Manager advocates for and supports climate initiatives with industry groups such as the AIC, the Singapore
Institute of Directors, AIGCC, and the Vietnam Institute of Directors (“VIOD”), which is a member of the ASEAN Network for Climate
Governance.
Strategy for 2021-2025
As most of Vietnam’s companies are in the early stages of integrating climate change implications into their business strategies, we continue
to focus our engagement efforts on raising portfolio companies’ awareness and providing them with guidelines to measure their total carbon
emissions and adopt or develop low-carbon technologies.
We identify physical risks, such as acute weather events, as well as transition risks, which include policy, legal, and market risks. We do
this across sectors based on our core investment themes: industrialisation, urbanisation, and domestic consumption. In our analysis, we
prioritise the best-in-class companies regarding their adoption of technological solutions to reduce carbon emissions and the accuracy of their
disclosures on carbon footprints in their annual reports, favouring those committed to strong climate-resilient strategies.
Risk management
The ESG Committee collaborates closely with the Audit and Risk Committee and the Investment Manager to incorporate climate risks into the
overall risk management framework (pages 25 to 26).
The Investment Manager incorporates climate risk assessment at every stage of the investment process, from initial screening and due
diligence to investment decision-making and monitoring. Risks and their potential opportunities are regularly discussed during Investment
Committee meetings and managed at the portfolio level.
Metrics and targets
Sustainability Report (continued)
The portfolio’s carbon footprint is the key metric we use to monitor our progress in reducing carbon emissions. Our target is to keep
the portfolio’s carbon footprint 20% below the benchmark index, the Vietnam All Share Index (“VNAS”). The total emissions from Scopes
1 and 2 of VNH’s portfolio in 2024 are estimated to be 65% lower than the VNAS benchmark.
Portfolio’s Weighted Average Carbon Intensity (“WACI”): We utilise the WACI metric to evaluate the portfolio’s exposure to carbon-
intensive companies, expressed in tCO2/$M revenue. The WACI for VNH’s portfolio in 2024 is estimated to be 59.23 based on the Scope 1
and 2 emissions of all companies, significantly lower than the WACI for the VNAS benchmark at 124.32.
Low-carbon investment: From 2025 onwards, subject to shareholder approval, we will establish a firm target percentage for low-carbon
investments in our portfolio.
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Annual Report 2025 Stategic Report
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Portfolio Carbon Footprint
The carbon footprint of the VNH portfolio is benchmarked against an equivalent investment in the VNAS. As of 31 December 2024, the
portfolio’s Scope 1 and 2 emissions intensity was 65% lower than the VNAS benchmark, resulting in an estimated 9,536.53 tCO₂e in avoided
emissions. This substantial reduction is mainly due to the portfolio’s strategic sector allocation and preference for companies operating in
lower-emission industries. All emissions data shown in this report have been estimated using MSCI’s standardised methodology. To improve
transparency and align with TCFD recommendations, we will also publish a dedicated climate report utilising MSCI’s analytical tools and data
platform.
Keeping in line with the UN SDGs
The 17 Sustainable Development Goals (“SDGs”), also known as the Global Goals, were adopted by the United Nations (“UN”) in 2015 as a
universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity. With just over five
years remaining, it is vital that we accelerate our efforts if we wish to achieve meaningful change. The country’s Voluntary National Review
indicates that Vietnam is currently on track to accomplish four of the 17 SDGs that the government committed to for the 2030 Agenda.
These include SDG 1, “No poverty”; SDG 6, “Clean water and sanitation”; SDG 9, “Industry, innovation and infrastructure”; and SDG 10,
“Reduced inequalities”. The year 2022 marked the 45th anniversary of Vietnam’s relationship with the UN, and together with the Government
of Vietnam, the UN launched a new five-year Sustainable Development Cooperation Framework (“CF”) for the period 2022 to 2026.
The Government of Vietnam, in collaboration with the United Nations, has identified four key development outcomes: inclusiveness and
social development; climate change response and disaster resilience; environmental sustainability and shared prosperity through economic
transformation; and governance and access to justice. Progress will be assessed through 46 outcomes and 57 output indicators. We have
already observed the UN expanding its dialogue in Vietnam to encourage private sector firms to adopt the UN principles of responsible
business into their operations.
The 17 SDGs form a comprehensive framework that companies should consider when developing their sustainability strategies. We are pleased
to see that the SDGs have been included in many of our portfolio companies’ annual reports, with detailed examples of how relevant SDGs are
integrated into their business activities and corporate culture.
For example, the banking sector, which constitutes approximately 35.1% of VNH’s portfolio as of 30 June 2025, has made notable progress
in committing to the SDGs in recent years. For instance, by offering more loans and other products associated with climate change, banks
can help accelerate the transition to clean energy and support underprivileged groups. Vietnamese banks have also been enhancing their
sustainability disclosures. During the financial year, we observed increasing competition among banks in ESG reporting, with TCB and ACB
taking the lead.
Additionally, FPT significantly contributes to SDG 4, “Quality Education”, through their extensive education programmes for staff, their
families, and communities. GMD, another company in our portfolio, has also made efforts to align its business with the SDGs, particularly
SDG 9, “Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation with its extensive green smart
port ecosystem”, and SDG 13, “Climate Action”.
Six of our portfolio companies, CTG, FPT, MBB, MWG, GMD, and PNJ, are featured in the Vietnam Sustainability Index (“VNSI”), updated
in August 2025, which ranks the top 20 sustainable listed companies on HOSE based on their ESG practices. The number of our portfolio
companies included in the VNSI accounted for 28% of VNH’s portfolio as of 30 June 2025. Three of our portfolio companies, PNJ, CTG, and
MWG, are also included in the Corporate Sustainability Index 2024 developed by the Vietnam Business Council for Sustainable Development
(“VBCSD”) under the Vietnam Chamber of Commerce and Industry (“VCCI”).
Total Emissions Scope 1 and 2 (tCO
2
e) 5,168.6 -9,536.53
Total Emissions Scope 3 (tCO
2
e) 34,871.6 -23,879.18
Total Emissions Scope 1,2 & 3 (tCO
2
e)
Emission Intensity (tCO
2
e/ USD Million Invested)
40,040.3
44.11
14,705.14
58,750.87
73,456.01
125.51
-33,415.71
-65%
Difference between
VNH Portfolio vs.
VNAS benchmarkVNAS benchmarkVNH Portfolio
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Stategic ReportAnnual Report 2025
The significance of ‘G’ in ESG
Corporate Governance (“CG”) is a vital part of any successful
business as it ensures accountability, transparency, and
ethical behaviour. As investors, we prefer companies that can
demonstrate good corporate governance practices. The CG
component in our ESG scorecard has been developed based
on both national regulations and international guidelines,
including the Law on Enterprises, the Law on Securities, Decree
155 on corporate governance of public companies, Circular 96
on disclosure of information of public companies, Vietnam’s CG
Code of Best Practices for public companies, and the ASEAN CG
Scorecard. It covers a broad range of governance issues, including
board structure, the company’s stated commitment to corporate
governance, risk management practices and control systems,
transparency and disclosure, shareholder rights, and board
oversight of environmental and social issues.
Although Vietnam’s equity markets are still classified as Frontier
Markets by MSCI and FTSE Russell, we believe it is only a matter
of time before they are upgraded. In anticipation of this, many
leading companies have adopted the World Bank’s IFC ESG
guidebook and other international standards to strengthen
their corporate governance frameworks. We have observed
notable progress over the past year in board-level oversight of
ESG issues among our portfolio companies. Nearly one-third of
these companies have established dedicated sub-committees to
focus on key ESG matters. The majority have sent their directors
on corporate governance training courses, and more than one-
third of the portfolio companies have certified directors on their
boards. Additionally, we are pleased to see improved investor
relations activities and increased transparency across all our
portfolio companies. This includes more monthly performance
updates, quarterly reports, and greater content available in
English. As mentioned above, we also see more sustainability
reports from companies following Global Reporting Initiative
(“GRI”) standards, which includes enhanced investor relations
support to address questions from investors.
Dedicated company engagement programme
The Investment Manager actively arranges face-to-face
meetings with several portfolio companies through the Company
Engagement Programme to discuss business strategies and how
ESG issues are managed. During the financial year, the team
continued to hold in-depth meetings with portfolio companies
to help enhance their ESG practices with practical solutions in
the short and medium term. Although each engagement and
conversation varies, we observed an overall willingness and strong
commitment from the boards of our top holdings to prioritise
sustainability matters in their business agendas.
In the financial year, our engagement with investee companies
concentrated on the following ESG topics:
Sustainability Report (continued)
Encouraging companies to enhance their ESG public disclosures
following international best practices.
•
Encouraging companies to develop a decarbonisation roadmap
with science-based targets.
Discussing the potential roles and responsibilities of an ESG
officer.
Shareholder voting
During the financial year, the Company participated in voting
at the Annual General Meetings (“AGM”) for each portfolio
company. This year, the AGMs were conducted both online and
in person. The Investment Manager attended 21 AGMs on behalf
of the Company and voted 99% in favour of all agenda items.
The Investment Manager evaluated each issue based on its
merits, considering its relevance to the strategic objectives of the
investee company and its long-term performance.
As part of its usual practice, the Investment Manager discusses
the agenda items with each of the investee companies’ boards of
directors. The voting records were published on the Investment
Manager’s website.
Membership and Partnership to promote ESG practices
The PRI
The Company’s investment policy aligns with the UN-supported
PRI, of which the Company has been a signatory since 2009. Each
year, the Company reports on its responsible investment activities
through the PRI Transparency Report. In its 2024 Transparency
Report, the Company received five-star scores across all sections.
Notably, there was an improvement in active ownership activities,
especially in areas such as the engagement approach, escalation
strategy, the number of companies engaged with, the topics
covered, and how we share insights from engagements with
stakeholders.
Vietnam Institute of Directors (“VIOD”)
Mr. Vu Quang Thinh, the CIO and Managing Director of Dynam
Capital, is a founder and board member of VIOD, a professional
organisation that promotes corporate governance standards
and best practices in the Vietnamese corporate sector. VIOD
was officially established in 2018 with technical support from the
IFC, a member of the World Bank Group, and Switzerland’s State
Secretariat for Economic Affairs (“SECO”). Controlled by a board
of directors consisting of various private sector representatives,
VIOD collaborates closely with and is supported by the State
Securities Commission of Vietnam (“SSC”), HOSE, and HNX
under the Vietnam Corporate Governance Initiative (“VCGI”).
With SSC’s backing, VIOD will continue to represent Vietnam in
the ASEAN Corporate Governance Scorecard. Dynam’s strong
collaboration with VIOD will remain pivotal in encouraging good
corporate governance in Vietnam over the coming years.
Asia Investor Group on Climate Change (“AIGCC”)
Dynam Capital, our Investment Manager, is an active participant
in AIGCC. Dynam Capital signed up for the 2024 Global Investor
Discussing how they could develop a satisfactory ESOP plan.
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Annual Report 2025 Stategic Report
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Statement to Governments on the Climate Crisis, alongside
534 investors representing nearly USD 29tn in assets under
management, urging governments to increase their climate
ambitions and implement effective policies to tackle the climate
crisis. Additionally, Dynam Capital has been applying AIGCC’s
Investor Climate Action Plan to develop VNH’s climate strategy,
while regularly attending AIGCC’s monthly member meetings
(and training sessions) on climate change.
Supporting local initiatives
In the financial year, together with the Investment Manager, we
actively promoted ESG awareness in Vietnam by partnering for
the Vietnam ESG Investor Conference 2025.
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Stategic ReportAnnual Report 2025
Anchoring Investment in Ethical Foundations
VietNam Holding Limited (“VNH”) has long recognised that
sustainable, inclusive growth must rest on a foundation of ethical
and responsible business conduct. Vietnam’s rapid economic
expansion continues to offer attractive opportunities for investors;
however, responsible investing in Vietnam demands an in-
depth understanding of the country’s social and environmental
landscape. Recognising the increasing importance of human rights
considerations in business operations, VNH, through its investment
manager, Dynam Capital, is progressively integrating the principles
of business and human rights into its ESG investment strategy. As
an early signatory of the PRI, VNH’s approach has only grown more
relevant as Vietnam’s development strategy increasingly aligns with
global ESG standards.
Vietnam has shown its commitment to sustainable development
through various national policies, including the National Green
Growth Strategy (2021–2030), the National Action Plan on Business
and Human Rights (“NAP-BHR”), and Resolution 68/NQ-CP,
which creates a framework for economic restructuring centred on
innovation, ESG, green growth, and private sector involvement.
These policies lay a foundation for aligning investor capital with
Vietnam’s social, economic, and environmental goals.
Dynam Capital, acting on behalf of VNH, has taken tangible steps
to implement responsible investment practices. This includes pre-
investment ESG due diligence using sector-specific metrics aligned
with global frameworks such as the UN Guiding Principles on
Business and Human Rights (UNGPs), OECD Guidelines, and IFC
Performance Standards. Importantly, the firm also incorporates
human rights screening into its selection and monitoring of portfolio
companies, recognising the unique risks faced by vulnerable groups
such as women workers and migrant workers in manufacturing,
agriculture, and service sectors.
Human Rights as a Risk Lens and Value Driver
Business and human rights risks—ranging from labour exploitation
to land rights violations—pose significant threats to long-term
company value. For example, the apparel and agriculture sectors,
which employ over 50% of Vietnam’s workforce, face increasing
scrutiny from global buyers and regulators. The European Union’s
Corporate Sustainability Due Diligence Directive (“CSDDD”) will, for
instance, require EU-based companies to ensure that Vietnamese
suppliers uphold human rights and environmental standards
throughout their operations.
Our investment manager, Dynam Capital, has responded by
working with investee companies to adopt risk-based approaches
to labour rights, including formalising grievance mechanisms and
improving workplace safety. In 2024, 100% of investee companies
paid their employees above minimum wage standards, developed
Business & Human Rights:
Cornerstone of Responsible Investing at VietNam Holding Limited
mechanisms to protect pregnant and nursing women, and adopted
policies against child labour use. These actions not only reduce
reputational and operational risks but also unlock access to ESG-
conscious capital.
Aligning with Policy and International Standards
Vietnam’s regulatory landscape is changing quickly to include
business and human rights within wider governance frameworks.
Resolution 68, Vietnam’s strategic plan for sustainable development,
explicitly calls for combining economic growth with social fairness
and environmental care. It urges ministries and local authorities to
adopt inclusive economic policies, improve corporate transparency,
and promote private sector involvement in achieving national
sustainability goals. This policy environment strengthens the role
of investors like VNH in shaping the future of Vietnamese business,
not just as providers of capital, but as custodians of ethical, rights-
respecting growth.
Alongside Resolution 68, the National Green Growth Strategy and
the 2023 draft ESG guidelines have called for incorporating human
rights, labour conditions, and environmental protections into
private sector standards. Meanwhile, the Vietnamese government is
preparing a National Action Plan on Responsible Business Conduct,
aligned with the UN Guiding Principles on Business and Human
Rights.
Looking Ahead: From Risk to Leadership
As Vietnam expands and diversifies its international trade and
investment connections, expectations for corporate behaviour will
only increase. Investors will play a vital role in shaping the standards
of ethical and sustainable business practices. In 2025, VNH and
Dynam Capital will continue to promote this initiative by:
Expanding ESG and human rights due diligence throughout our
pipeline and active portfolio.
Supporting investees in publishing non-financial disclosures
aligned with international standards.
Advocating for greater integration of ESG principles, including
human rights and good governance, in Vietnam’s investment
sector.
Through these efforts, VNH aims to show that respecting human
rights is not only the right thing to do but also essential for
building more resilient companies, stronger societies, and a vibrant
Vietnamese economy.
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Annual Report 2025 Stategic Report
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The Board has carried out a robust assessment of the Company’s emerging and principal risks and considers with the assistance of
the Investment Manager the risks and uncertainties faced by the Company in the form of a risk matrix and heat map. The investment
management of the Company has been delegated to the Company’s Investment Manager. The Investment Manager’s investment process
takes into account the material risks associated with the Company’s portfolio and the holdings in which the Company is invested. The
Board monitors the portfolio and the performance of the Investment Manager at regular Board meetings. The principal risks and the
descriptions of the mitigating actions taken by the Board are summarised in the table below.
Key Risk Description Mitigating Action
Vietnam is an increasingly open trading nation,
and the changes in terms of international trade,
disruption to supply chains and impositions of
tariffs could impact directly and indirectly the
Vietnamese economy and the companies in which
the Company is invested. The Vietnamese economy
can also be impacted by the global-macro economic
conditions, and also geopolitical tensions. The
Vietnamese capital markets are relatively young,
and liquidity levels can change abruptly responding
to changes in the behaviour of domestic and
international investors.
Parts of the portfolio may be prone to enhanced
liquidity and price risk.
The Board is regularly briefed on political and
economic developments by the Investment Manager.
The Investment Manager publishes a monthly report
on the Company which includes information and
commentary on the macroeconomic developments in
Vietnam.
The inherent liquidity levels in the portfolio have been
considered explicitly in the viability of the Company
and the Board is reasonably satisfied that even in
periods of distress and low liquidity there would be an
adequate level of assets that could be realised to meet
the liabilities of the Company as they fall due.
The Board has noted that the underlying market
liquidity in Vietnam has increased dramatically during
the last year, and the portfolio composition has also
included a higher percentage of larger and more liquid
companies.
Market Risk
Vietnam is currently classified as a Frontier Market
by MSCI, and the timetable for any inclusion as an
Emerging Market is unsure. Investor attitudes to
Frontier and Emerging Markets can change, leading
to reduced demand for the Company’s shares, and
an increase in the discount to NAV per share.
The Investment Manager keeps shareholders and other
potential investors regularly informed on Vietnam in
general and the Company’s portfolio in particular. At
each Board meeting the Board receives reports from
the Investment Manager, from Cavendish Securities
plc, its broker, and is updated on the composition of the
shareholder register. In 2019 the Company migrated its
domicile from Cayman Islands to Guernsey and moved
its trading from AIM to the Main Market (previously
the Premium segment of the Official List) of the LSE
in order to make the shares attractive to a wider
audience of potential investors. In seeking to narrow
the discount, the Board has also implemented an on-
going share buy-back programme.
Investor
Sentiment
The performance of the Company’s investment
portfolio could be poor, either absolutely or in
relation to the Company’s peers, or to the market
as a whole.
The Board receives regular reports on the performance
of the portfolio and its underlying assets. The
Investment Manager reports to the Board at
each Board meeting, and the Board monitors the
performance of the Investment Manager.
Investment
Performance
Principal Risks and Risk Management
24
Stategic ReportAnnual Report 2025
Principal Risks and Risk Management (continued)
The risks associated with the fair valuation of the
portfolio could result in the NAV of the Company
being misstated. The quoted companies in the
portfolio are valued at market price, but it may
be difficult to liquidate, where large positions are
held, at these prices in an orderly fashion in the
ordinary course of market activity. The values
of the Company’s underlying investments are
denominated in Vietnamese Dong, whereas the
Company’s accounts are prepared in US Dollars.
The Company does not hedge its Vietnamese Dong
exposures so exchange rate fluctuations could have
a material effect on the NAV.
The Board reviews the valuation of the portfolio with
the Investment Manager regularly.
The daily estimated NAV is calculated by the
Investment Manager.
The monthly NAV is calculated by the Fund
Administrator.
Fair Valuation
The fund management activities are outsourced to
the Investment Manager. If the Investment Manager
became unable to carry out these activities or
if the Investment Management Agreement was
terminated, there could be disruptions to the
management of the portfolio until a suitable
replacement is found.
The Board maintains a close contact with the
Investment Manager and reviews the performance of
the Investment Manager on a regular basis.
Investment
Management
Agreement
The Company has no employees and is dependent
on a number of third parties for the provision of
services (including Investment Management, Fund
Administration and Custody). Any control failures or
gaps in the services provided could result in damage
or loss to the Company.
The Board receives regular reports from the Investment
Manager and Fund Administrator on their policies,
controls, and risk management.
Operational
Failure to comply with relevant regulation and
legislation in relevant jurisdictions may have
an impact on the Company. Although there are
compliance policies (including anti-bribery policies)
in place at the Company, the Investment Manager
and all service providers, the Company could be
damaged or suffer losses if any of these polices were
breached.
The Company is administered in Guernsey by a Fund
Administrator which reports to the Board at each
Board meeting on compliance matters. The Board
receives training and updates on compliance matters.
The Investment Manager is regulated in Guernsey
and has extensive compliance and risk management
policies in place.
Legal and
Regulatory
Climate change is happening faster than models
earlier predicted, threatening the safety of
billions of people on the planet. Vietnam is one of
the twenty countries most vulnerable to climate
change. The country’s diverse geography means it
is hit by sea level rise, typhoons, landslides, flooding
and droughts, and weather events are expected
to worsen in coming years. Two types of climate-
related risks have been identified.
The Board, through the Investment Manager, has
engaged a specialist consulting firm in Vietnam to help
estimate the portfolio’s carbon footprint and identify
the carbon-intensive sectors. The Investment Manager
has undertaken to analyse the physical and transition
risks of climate-sensitive industries to develop an
appropriate investment and engagement strategy
and to encourage investee companies to do more on
climate-related risk assessment and disclosures. The
Climate Risk
Key Risk Description Mitigating Action
Annual Report 2025 Stategic Report
25
New risks beyond those identified as Principal Risks
can develop. These Emerging Risks may have a
detrimental or existential impact on the Company.
The Board reviews the risk matrix and risk register
that captures and tracks emerging risks as part of its
overall risk management practices. Emerging Risks are
identified and recorded with a description of their root
cause, a risk assessment, a description of mitigating
actions, a monitoring plan, and a net risk rating.
Changes in risk ratings are presented to the Board on
a quarterly basis. There are no emerging risks to bring
to the attention of the shareholders at the date of the
Annual Report.
Emerging Risks
The Company is exposed to currency risk arising from
its investments denominated in Vietnamese Dong
(“VND”), while its functional and reporting currency
is the US Dollar (“USD”). A potential devaluation
of the VND by the State Bank of Vietnam (“SBV”)
intended to enhance export competitiveness or
respond to depreciation pressures from regional
currencies such as the Chinese Yuan (“CNY”) could
negatively impact the value of the Company’s
portfolio. Specifically, a weaker VND would reduce
the USD-equivalent value of investments held
in local currency, resulting in unrealised foreign
exchange losses. Additionally, the cost of imports for
portfolio companies may rise, potentially affecting
their profitability and valuation.
To manage the potential adverse effects of currency
fluctuations, particularly the depreciation of the
Vietnamese Dong (“VND”) against the US Dollar
(“USD”), the Company employs a multi-faceted
mitigation strategy. The Investment Manager actively
monitors macroeconomic indicators such as Vietnam’s
current account balance and the USD/VND exchange
rate, as well as the exchange rate policy of the State
Bank of Vietnam (“SBV”), including the size and
frequency of its market interventions. In addition, the
Company tracks movements in the USD CNY rate, given
its influence on regional currency dynamics. During
periods of heightened foreign exchange volatility, the
Company seeks to maintain a higher proportion of its
cash holdings in USD to preserve value. The portfolio
construction also considers the differential impact
of currency movements on exporters and importers,
recognising that VND depreciation may benefit
export-oriented companies while increasing costs for
import-reliant businesses.
Currency Risk
Climate Risk
(continued)
(1) Physical risks: sea level rise, floods and typhoons
that put infrastructure or real estate companies
with projects in coastal areas or low-lying levels at
higher risk from physical impacts of climate change.
(2) Transition risks: climate policy and rising carbon
prices may cause higher prices and impact the
viability of companies that rely on fossil fuels or those
in carbon intensive activities and may necessitate a
significant, and costly, technology shift.
Investment Manager monitors investee companies
that are identified to be at high climate risk.
The Investment Manager is a member of the Asia
Investor Group on Climate Change and keeps abreast
of the changes in policies that may impact transition
and other climate-related risks. The Board is in regular
contact with the Investment Manager and receives
Key Risk Description Mitigating Action
26
Stategic ReportAnnual Report 2025
Director Profiles and Disclosure of Directorships
All of the Directors are Non-executive Directors and the majority are independent of the Investment Manager.
Mr Funaki has been actively involved in raising, researching and
trading Vietnam funds since 1995. He worked at Edmond de
Rothschild Securities from 2000 to 2015 where he led the Investment
Companies team, focusing on Emerging Markets and Alternative
Assets. Prior to that he was Head of Research at Robert Fleming
Securities, also specialising in closed-end funds. He currently
acts as an investment adviser to a Family Office. He has a MA in
Mathematics and Philosophy from Oxford University.
Hiroshi Funaki
Chairman
Ms Tajima has over 20 years’ experience in finance, of which 8
years have been spent in Asian real estate asset management and
structured finance. Working for Aozora Bank and group companies
of Lehman Brothers and Capmark, she focused on financial
analysis, monitoring and reporting to lenders, borrowers, auditors,
regulators, and rating agencies. Over the last 10 years, she has
invested in and helped develop tech start-ups in Tokyo, Seoul, and
Sydney. She is a Certified Public Accountant in the US.
Saiko Tajima
(Remuneration and Nomination Committee Chairman)
Mr Scales has over 40 years’ experience working in offshore
corporate, trust, and third-party fund administration. For 18 years,
he was managing director of Barings Isle of Man (subsequently
to become Northern Trust) where he specialised in establishing
offshore fund structures, mainly in the closed-ended arena (both
listed and unlisted entities). Mr Scales subsequently co-founded
FIM Capital Limited and is Chairman of FIM Holdings Limited.
He is a Fellow of the Corporate Governance Institute (formerly
the Institute of Chartered Secretaries and Administrators) and
holds directorships in listed companies and collective investment
schemes.
Philip Scales
(Audit and Risk Committee Chairman and
Management Engagement Committee Chairman)
Ms Vu is a partner at Raise Partners, a consultancy that advises
clients on ESG strategy and partnerships. She has over 20 years
of experience in ESG and international development and is one of
Vietnam’s leading experts on human trafficking, modern slavery,
and labour migration. Ms Vu is Co-founder and Vice-Chair of the
Vietnam International Safe Labour Alliance, an Advisory Board
Member of the Belgium Luxembourg Chamber of Commerce
Vietnam and a Vice-Chair of the European Chamber of Commerce’s
Women in Business Committee. She has a BA from University of
Michigan and MPA in International Nonprofit Policy & Management
from New York University.
Connie Hoang Mi Vu
(Environmental, Social and
Governance Committee Chairman)
Disclosure of Directorships in Public Companies Listed on Recognised Stock Exchanges
Philip Scales
Name Stock Exchange
Channel Islands
Company Name
First World Hybrid Real Estate plc
Annual Report 2025 Governance
27
The Directors are responsible for the determination of the overall
management of the Company including its investment policy
and strategy. This includes the review of investment activity,
performance and control and supervision of the Investment
Manager and other advisers. The Directors are all Non-executive
and the majority are independent of the Investment Manager.
The Board is also responsible for its own composition, capital
raising, meeting statutory obligations and public disclosure,
financial reporting and entering into any material contracts on
behalf of the Company.
The Directors have access to the advice and services of the
Administrator and Secretary, who are responsible to the Board
for ensuring that Board procedures are followed and that it
complies with Company Law, applicable rules and regulations of
the Guernsey Financial Services Commission, the London Stock
Exchange and The International Stock Exchange.
Where necessary, in carrying out their duties, the Directors may
seek independent professional advice at the expense of the
Company.
The Board of the Company has considered the Principles and
Provisions of the Association of Investment Companies Code of
Corporate Governance issued in February 2019 (“AIC Code”). The
AIC Code addresses the Principles and Provisions set out in the UK
Corporate Governance Code (the “UK Code”), as well as setting
out additional Provisions on issues that are of specific relevance
to the Company. The Board and its advisors are aware of the
new code and will carry out a review to ensure that it remains
compliant.
The Board considers that reporting against the Principles and
Provisions of the AIC Code, which has been endorsed by the
Financial Reporting Council and the Guernsey Financial Services
Commission provides more relevant information to Shareholders.
The Board also considers by reporting against the AIC Code, they
are meeting their obligations under the UK Code, the 2011 GFSC
Finance Sector Code of Corporate Governance and associated
disclosure requirements under paragraph 9.8.6 of the Listing
Rules.
The AIC Code is available on the AIC website (www.theaic.co.uk).
It includes an explanation of how the AIC Code adapts the
Principles and Provisions set out in the UK Code to make them
relevant for investment companies.
Except as disclosed within this report, the Board is of the view
that the Company complied with the recommendations of the
AIC Code and the relevant provisions of the AIC Code during the
year ended 30 June 2025. Key issues affecting the Company’s
corporate governance responsibilities, how they are addressed by
the Board and application of the AIC Code are presented below.
Liaison with Shareholders is dealt with by the Chairman of the
Company and the Directors working closely with the Company’s
Advisors.
Directors’ Responsibilities to Stakeholders
Section 172 of the UK Companies Act 2006 applies directly to UK
domiciled companies, however the AIC Code requires that the
matters set out in Section 172 are reported by all companies,
irrespective of domicile. This requirement does not conflict with
the Companies Law in Guernsey.
Section 172 recognises that Directors are responsible for acting in
a way that they consider, in good faith, is most likely to promote
the success of the Company for the benefit of its shareholders
as a whole. In doing so, they are also required to consider the
broader implications of their decisions and operations on other
key stakeholders and their impact on the wider community and
the environment.
Key decisions are defined as those that are material to the
Company, but also those that are significant to any of the
Company’s key stakeholder groups. The Company’s engagement
with its key stakeholders is outlined on pages 31 to 32 of the
corporate governance section of this report.
Board Independence and Composition
The Directors are all Non-executive and the majority are
independent. Two of the Board members were appointed in
September/October 2017 following the retirement of the previous
Board and the third member was appointed in May 2019 following
the retirement of a Board member at the 2018 AGM. The fourth
member was appointed in March 2024 following the resignation
of two Board members at the 2023 AGM.
Mr Funaki is a Director of Discover Investment Company which
at 30 June 2025 held 1,415,776 ordinary shares in the Company
representing 6.03% of the issued share capital. The Board are
satisfied that this does not have any impact on Mr Funaki’s
independence as a Director of the Company.
As detailed in note 8 of the financial statements, Directors own
shares in the Company as follows:
Corporate Governance Report
Hiroshi Funaki
Philip Scales
Saiko Tajima
19,887
10,077
5,000
The Board reviews the independence of the Directors regularly and
at least annually.
The Board acknowledges the benefits of greater diversity and
welcomes the recommendations from the Hampton-Alexander
Review on gender diversity and the Parker Review on ethnic
28
GovernanceAnnual Report 2025
Male
Female
Not specified
N/A
N/A
N/A
-
-
-
2
2
-
50%
50%
-
2
2
-
Number in
Executive team
Percentage of
Executive Team
No of senior positions
on the Board
Percentage of
Board
Gender identity / sex
No of Board
Members
White British or other (including
other minorities)
Asian/ Asian British
Mixed/ multiple Ethnic groups
Not specified
1
3
-
-
25%
75%
-
-
1
3
-
-
N/A
N/A
N/A
N/A
-
-
-
-
Ethnic Background
Number in
Executive team
Percentage of
Executive Team
No of senior positions
on the Board
Percentage of
Board
No of Board
Members
representation. The Remuneration and Nomination Committee will consider diversity generally when making recommendations for
appointments to the Board but with the principal aim that any new appointment is filled by the most appropriate candidate based on a
range of skills, knowledge and experience appropriate for an investment trust.
In all of the Board’s activities, there has been and will be no discrimination on the grounds of gender, race, ethnicity, religion, sexual
orientation, age or physical ability.
The Board notes the new Listing Rules requirements regarding the targets on board diversity:
at least 40% of individuals on the Board are women;
at least one senior Board position (chairman, chief executive officer (“CEO”), senior independent director or chief financial officer
(“CFO”)) is held by a woman; and
at least one individual on the Board is from a minority ethnic background, defined to include those from an ethnic group other than
a white ethnic group, as specified in categories recommended by the Office for National Statistics
As required by the Listing Rules, reporting against these targets is set out in the tables below in the prescribed format. The data was
collected on a self-identifying basis.
The Board is pleased to announce that since March 2024, the board has maintained a 50% gender balance in its composition.
The Company is an externally managed investment trust meaning there is no CEO or CFO, however the Board considers that the
Chairman of any of the Company’s Committees to be a senior position.
The Board notes also that 40% of the team members employed by the Investment Manager and its subsidiary in Vietnam are female
and 90% are ethnically Vietnamese.
The Board believes the current board members have the appropriate qualifications, experience, and expertise to manage the Company.
The Directors’ biographies can be found on page 27.
Board Meetings and Attendance
The Board meets regularly during the year with representatives from the Investment Manager present. In addition, representatives from
the Company’s Broker and Administrator attend Board and committee meetings by invitation. At each quarterly Board meeting the
•
•
•
Corporate Governance Report (continued)
Board Independence and Composition (continued)
Annual Report 2025 Governance
29
performance of the portfolio is formally reviewed and during the year, Board members also attend investment meetings with members
of the Investment Manager’s senior team. The Board members have a range of skills covering investment management, banking,
compliance, ESG and corporate governance as well as prior experience of acting as directors of companies listed on the London Stock
Exchange.
The Company’s brokers and lawyers are consulted on any matters where external expertise is required, and external advisers attend
board meetings as invited by the Chairman to report on and/or discuss specific matters relevant to the Company.
Re-election of Directors
The Board has agreed that all Directors should submit themselves for annual re-election.
Mr Funaki, Mr Scales, Ms Tajima and Ms Vu will all stand for re-election at the 2025 AGM.
The individual performance of each Director standing for re-election or election has been evaluated by the other members of the Board
and a recommendation will be made that Shareholders vote in favour of their re-election at the AGM in December 2025.
Administration
On 7 October 2019 the Board appointed Apex Fund and Corporate Services (Guernsey) Limited to provide corporate governance,
secretarial, compliance and accounting services to the Company.
Conflicts of Interest
The Directors are reminded at each Board meeting of their obligations to notify any changes in their statement of conflicts and also
to declare any benefits received from third parties in their capacity as a Director.
A register of conflicts is maintained by the Administrator and formally reviewed on a quarterly basis. Each Director is required to
declare any potential conflicts of interest on an ongoing basis.
Performance Evaluation
During the year the Board undertook an evaluation exercise into the effectiveness of both the Board and the Committees. The
programme was undertaken by the Administrator and no significant issues were identified.
The Remuneration and Nomination Committee will again consider whether for the next evaluation due in 2026, an external facilitator
should be appointed to undertake the evaluations in line with AIC recommendations.
Professional Development and Training
New Directors are provided with all relevant information regarding the Company’s business and given the opportunity to meet with key
functionaries prior to appointment. They are also provided with induction training.
It is the responsibility of each Director to ensure that they maintain sufficient knowledge to fulfil their role and so are encouraged to
participate in seminars and training courses where appropriate.
Hiroshi Funaki
Philip Scales
Saiko Tajima
Connie Hoang Mi
4 (4)
4 (4)
4 (4)
4 (4)
4 (4)
4 (4)
4 (4)
4 (4)
2 (2)
2 (2)
2 (2)
2 (2)
2 (2)
2 (2)
2 (2)
2 (2)
2 (2)
2 (2)
2 (2)
2 (2)
Audit and Risk
Board
Remuneration and
Nomination
Management
Engagement
Environmental,
Social and
Governance
30
GovernanceAnnual Report 2025
Committees of the Board
Four Committees have been formed, an Audit and Risk
Committee, a Remuneration and Nomination Committee, a
Management Engagement Committee and an ESG Committee.
Since September/October 2017 the Company has been through a
period of considerable change and apart from the Management
Engagement Committee, all Board members are members of each
committee.
The Chairman of the Company does not Chair any of the Committees.
Details of the Chairman of each committee, together with the
number of meetings held during the year are shown on pages 30
to 31. A summary of the Terms of Reference of each committee is
detailed below and a copy of the Terms of Reference are available on
the Company’s website www.vietnamholding.com.
Audit and Risk Committee
The Chairman of the Audit and Risk Committee is Philip Scales
and the Committee meets at least twice per annum. All members
of the Board are members of the Committee. This includes the
Chairman of the Company where, given the size of the Board, the
experience of all members and the independence of the Company
Chairman, it is felt appropriate that all Board members play a
role in the Audit and Risk Committee. The principal responsibility
of the Committee is to monitor the production of the Interim and
Annual Financial Statements and to present these to the Board
for approval.
Other duties include reviewing the internal financial controls and
monitoring third party service providers, review and monitor the
external auditor’s independence and objectivity along with the
effectiveness of the audit process and to make recommendations
to the Board in relation to the appointment of the External
Auditor together with their remuneration.
A report of the Audit and Risk Committee is detailed on pages
33 to 34.
Remuneration and Nomination Committee
The Remuneration and Nomination Committee is chaired by
Saiko Tajima and all members of the Board are members of the
Committee. The Board considers that a majority of the Directors
are independent and therefore eligible to be members of the
Committee. The Committee meets at least once in each year and
at such other times as may be considered necessary.
The principal duties of the Remuneration and Nomination
Committee are to review the fees paid to the Non-executive
Directors, to consider the appointment of external remuneration
consultants, to review the structure, size and composition of the
Board, make recommendations to the Board for any changes
and to consider succession planning. The Committee also
undertakes the evaluation of the appointment of any additional
or replacement Directors and ensures they are provided with
training and induction. The Committee arranges for an annual
evaluation of all Board and Committee members.
During the year the Committee reviewed the fees paid to Directors
and resolved that no changes be recommended.
Management Engagement Committee
The Chairman of the Management Engagement Committee is
Philip Scales and the Committee shall meet at least once a year.
All members of the Board other than Saiko Tajima are members
of the Committee. The principal duties of the Committee are
to review the performance and appointment of the Investment
Manager together with their remuneration and to review the
effectiveness and competitiveness of the other main service
providers and functionaries together with reviewing their
performance.
A share buy-back sub-committee consisting of Hiroshi Funaki
and Philip Scales has been formed under the Management
Engagement Committee and meets periodically to review and
monitor the share buy-back programme.
During the year the Committee reviewed the performance of
the Investment Manager, Administrator and Sub-Administrator,
Corporate Broker and Registrar. No changes were recommended
as a result of these reviews.
Environmental, Social and Governance Committee
The ESG Committee was established in 2021 and is chaired by
Connie Hoang Mi Vu with all members of the Board forming the
Committee. The aim of the Committee is to establish a unified
view of ESG, increasing understanding of all three aspects:
environmental, social and governance, and to promote the robust
standards of corporate governance that the Company adopts.
The purpose of the ESG Committee, which shall meet at least once
a year, is to support the Company’s on-going commitment to
environmental, health and safety, corporate social responsibility,
corporate governance, sustainability, and other public policy
matters relevant to the Company (collectively, “ESG Matters”).
Shareholder Engagement
The Company is committed to listening and communicating
openly with its Shareholders to ensure that its strategy, business
model and performance are clearly understood. All Board
members have responsibility for Shareholder liaison. Shareholder
contact is dealt with by the Chairman of the Company and the
Directors in close liaison with the Company Advisors.
Copies of the Annual Report are sent to all Shareholders and can
be downloaded from the website. Other Company information
including the Interim Report is also available on the website.
Annual Report 2025
Corporate Governance Report (continued)
Governance
31
The Company holds an AGM each year, which gives investors the
opportunity to enter into dialogue with the Board and for the Board
to receive feedback and take action as necessary. The Investment
Manager also participates in meetings with investors arranged by
the Company’s Broker and has arranged seminars and webinars
to update current and prospective investors on the developments
in the Vietnamese market and the performance of the Company.
The Investment Manager also updates the Company’s website
and sends out monthly factsheets on the Company to investors
who have registered to receive such updates. The Company has a
LinkedIn page which is administered by the Investment Manager.
The Board reviews proxy voting reports and any significant negative
response is discussed with relevant Shareholders and, if necessary,
where appropriate or possible, action is taken to resolve any issues.
In the interest of transparency and best practice, the level of proxy
votes (for, against and vote withheld) lodged on each resolution is
declared at all general meetings and announced.
Corporate Policies
Anti-Bribery and Corruption Policy
The Board is committed to the prevention of bribery throughout
the organisation and will take every step necessary to ensure to
the best of its ability that business is conducted fairly, honestly
and openly. It has adopted a formal policy to combat fraud,
bribery and corruption and will seek annual confirmation from the
Investment Manager and other service providers it engages that
they have similar policies in place. Furthermore, the Board has zero
tolerance to the criminal facilitation of tax evasion. These policies
apply to the Company and to each of its Directors. Further, the
policies are shared with each of the Company’s service providers,
each of which confirms its compliance annually to the Board.
Criminal Facilitation of Tax Evasion Policy
The Board has taken steps to ensure there is no criminal facilitation
of tax evasion. This applies to the Company and to each of its
Directors, as well as service providers. A policy has been adopted
by the Board.
General Data Protection Regulation
The Company abides by general data protection regulation.
As it is established in the Bailiwick of Guernsey, under The Data
Protection (Bailiwick of Guernsey) Law, 2017, the Company has
registered with the Office of the Data Protection Authority.
The Company
Global Greenhouse Gas Emissions
The Company has no significant greenhouse gas emissions to
report from its operations for the year to 30 June 2025, nor does it
have responsibility for any other emission producing sources. The
Company is very conscious of its own carbon footprint in carrying
out its business activities. The main source of this for the Company
is in the international and domestic air travel of the Board of
Directors and members of the Investment Manager in conducting
the business of the Company and meeting with Shareholders.
During the year members of the Board travelled to Vienna, London,
Madrid and Ho Chi Minh City in conducting the business of the
Company whilst some meetings were held via video conference.
The estimated carbon footprint of travel activities (that have not
already been offset at source) amounts to approximately 46.41
tonnes of CO
2
e.
The Company engaged a specialist consulting firm to estimate
the carbon footprint of the portfolio, and this is detailed in the
Sustainability Report
(pages 17 to 22).
Gender Metrics
The Board of the Company recognises the governance mechanism
to ensure there is diversity amongst the Directors and as such the
Board now achieves a 50/50 gender representation. The Board
is committed to treating all equally and considers all aspects of
diversity including gender and ethnic diversity. The Remuneration
and Nomination Committee will consider diversity when making
recommendations for appointments to the Board but with the
principal aim that any new appointment is filled by the most
appropriate candidate based on a range of skills, knowledge and
experience appropriate for an investment trust.
32
GovernanceAnnual Report 2025
The main items that the Audit and Risk Committee (the
“Committee”) has considered and reviewed during the year ended
30 June 2025 were:
Principal Duties
During the year the Committee has:
A copy of the Terms of Reference of the Committee is available
either from the Company’s website or from the Company’s
Administrator.
Valuation of Investments
The fair value of the Company’s investments at 30 June 2025 was
USD 113.7 million which represented 96.64% of the Company’s NAV
(30 June 2024: USD 134.9 million and 96.30% respectively). The
valuation of investments is the most significant factor in relation
to the accuracy of the financial statements.
The Committee reviewed the portfolio valuation as at 30 June
2025 and obtained confirmation from the Investment Manager
that the Company’s policies on the valuation of investments had
been followed. The Committee also made enquiries of the Sub-
Administrator and Custodian, both of whom are independent
of the Company, to check procedures are in place to ensure the
portfolio is valued correctly.
The Committee agreed to the approach to the audit of the
valuation of investments with the External Auditor prior to
the commencement of the audit. All the investments will be
independently checked by the External Auditor. The results of
the audit in this area were reported by the External Auditor and
there were no significant disagreements between the Investment
Manager, the Sub-Administrator and the External Auditor’s
conclusions.
The Board reviews the changes in valuations at each quarterly
Board meeting.
External Audit
KPMG Channel Islands Limited (“KPMG”) has been the External
Auditor since the Company re-domiciled in Guernsey on 25
February 2019. The Committee held meetings with KPMG before
the start of the audit to discuss formal planning and to discuss any
Internal Control
As a company with a Board consisting of Non-executive Directors
and which outsources the day-to-day activities of portfolio
management, administration, accounting and company
secretarial to external service providers, the Board considers
the provision of an internal audit function is not relevant to the
position of the Company.
The Committee reviews the internal financial control systems for
their effectiveness and through the Management Engagement
Committee, monitors the performance of the external service
providers. The Board recognises its ultimate responsibility for the
Company’s system of internal controls to ensure the maintenance
of proper accounting records, the reliability of the financial
information upon which business decisions are made and that
the assets of the Company are safeguarded. Through these
procedures, the Directors have kept under review the effectiveness
of the internal control system throughout the year and up to the
date of this report. There were no issues arising from this review.
Membership and Attendance
The Committee membership currently consists of all Board
members under the Chairmanship of Philip Scales. This includes the
Chairman of the Company where, given the size of the Board, the
experience of all members and the independence of the Company
Chairman, it is felt appropriate that all Board members play a role
in the Audit and Risk Committee. The Terms of Reference allow
appointments to the Committee for a period of up to 3 years and
this may be extended for two further 3-year periods provided that
the Director remains independent.
The Committee holds at least two meetings a year which are to
review the Annual and Half-Year Reports of the Company and
also for audit planning purposes and a review of risks relevant
to the Company. Details of the number of committee meetings
held during the year ended 30 June 2025 and the number of those
attended by each committee member are shown on page 30.
The External Auditor is invited to attend committee meetings
where the Annual and Half-Year Reports are considered, and
separate meetings are held with the External Auditor where the
Investment Manager is not present.
Audit and Risk Committee Report
the content of the Interim Report and the Annual Report;
the independence and effectiveness of the External Auditor;
the internal control and risk management systems and the
work of the service providers; and
the control framework with the assistance of the Investment
Manager and Administrator.
monitored the integrity of the financial statements of the
Company and any formal announcements relating to the
Company’s financial performance;
reviewed the Company’s internal financial controls and
the internal control and risk management systems of the
Company and its third-party service providers;
made recommendations to the Board in relation to the
appointment of the External Auditor and their remuneration
reviewed and monitored the External Auditor’s independence
and objectivity and the effectiveness of the audit process; and
challenged the Investment Manager on the scenarios used to
support the going concern basis and the ongoing viability
assessment.
•
•
•
•
•
•
•
•
•
Annual Report 2025 Governance
33
Philip Scales
Audit and Risk Committee Chairman
30 September 2025
possible issues along with the scope of the audit and appropriate
timetable. Informal meetings have also been held with the
Chairman of the Committee in order that the Chairman is kept
up to date with the progress of the audit and formal reporting
required by the Committee.
Annually, the Committee reviews the performance of KPMG in
order to recommend to the Board whether or not the Auditors
should be reappointed for the next year.
Audit fees payable to KPMG for 2025 are GBP 72,252 (2024: GBP
66,900). Non audit fees payable to KPMG for 2025 were GBP nil
(2024: GBP nil).
The Committee has reviewed KPMG’s report on their independence
and objectivity, including their structure for the audit of the
Company and is satisfied that the services provided by KPMG do
not prejudice its independence. The Committee will continue to
review any non-audit services that may be provided by KPMG in
order to ensure their continuing independence and integrity.
Risk Management
An outline of the risk management framework and principal risks is
detailed on pages 24 to 26. The Committee will keep under review
financial and operational risk including reviewing and obtaining
assurances from key service providers for the controls for which
they are responsible.
Anti-Bribery and Corruption
The Company has a zero-tolerance approach to bribery and
corruption, in line with the UK Bribery Act 2010. An Anti-Bribery
and Corruption Policy has been adopted and is kept under review.
Annual Report
The Committee has reviewed the Annual Report along with reports
and explanations from the Company’s Investment Manager,
Administrator, and other service providers. The Committee
is satisfied that the Annual Report is fair, balanced, and
understandable and that it provides the necessary information
for Shareholders to assess the Company’s performance, business
model, and strategy.
The Committee is satisfied that KPMG has fulfilled its responsibilities
in respect of the annual audit and has recommended that KPMG
be re-appointed for the forthcoming financial year.
34
GovernanceAnnual Report 2025
Remuneration Policy
The Directors are entitled to receive fees for their services which
reflect their experience, and the time commitment required. At the
Annual General Meeting to be held in December 2025 an ordinary
resolution seeking approval for the Directors’ remuneration report
will be put to Shareholders.
Directors’ Remuneration
Directors’ fees are paid within limits established in the Articles
of Incorporation which shall not exceed an aggregate of USD
350,000 in any financial year (or such sum as the Company shall
from time to time determine). The Directors may also be paid
reasonable travelling, hotel and other out-of-pocket expenses
properly incurred in attending Board, committee meetings or
general meetings. The Remuneration Committee reviews the
Directors’ fees periodically although the review will not necessarily
result in any increase. For the year ended 30 June 2025 annual
Year ended 30 June 2024
Director
Total
USD
Total
USD
Base Fees
USD
Hiroshi Funaki (Chairman)
Philip Scales (Audit and Risk Committee Chairman)
Saiko Tajima
Connie Hoang Mi Vu
Sean Hurst (Resigned)
Damien Pierron (Resigned)
Total
60,000
55,000
50,000
13,320
27,759
25,000
231,079
9,750 6,750
9,000 6,000
9,750 6,000
9,750 1,500
- 3,078
- 3,215
38,250 26,543
69,750 66,750
64,000 61,000
59,750 56,000
59,750 14,820
- 30,837
- 28,215
253,250 257,622
60,000
55,000
50,000
50,000
-
-
215,000
Base Fees
USD
Additional
Ad hoc fees
USD
Additional
Ad hoc fees
USD
Year ended 30 June 2025
Directors’ Remuneration Policy and Report
Directors’ fees remained at USD 50,000 with the Chairman of
the Company receiving an additional USD 10,000 per annum or
prorated as applicable and the Chairman of the Audit and Risk
Committee receiving an additional USD 5,000 per annum or
prorated as applicable.
The Directors are also paid a per diem fee of USD 1,500 for each
Board meeting attended and USD 750 for a committee meeting
attended, either in person or by telephone.
The Company has no bonus schemes, pension schemes, share
options or other long-term incentive schemes in place for the
Directors.
The single total figure of remuneration for each Director who
served during the year ended 30 June 2025 and the previous year
is as follows:
Annual Report 2025 Governance
35
36
GovernanceAnnual Report 2025
The Directors present the Annual Report and Financial Statements
of the Company for the year ended 30 June 2025.
The Company
VietNam Holding Limited (the “Company”) is a closed-end
investment company that was incorporated in the Cayman
Islands on 20 April 2006 as an exempted company with limited
liability under registration number 166182. On 25 February 2019, the
Company, via a process of cross-border continuance, transferred
its legal domicile from the Cayman Islands to Guernsey and
was registered as a closed-ended company limited by shares
incorporated in Guernsey with registered number 66090.
The investment objective of the Company is to achieve long-
term capital appreciation by investing in a diversified portfolio
of companies that have high growth potential at an attractive
valuation.
At the Extraordinary General Meeting held on 21 December 2023
the Shareholders voted in favour of the continuance resolution,
authorising the Company to operate in its current form through
to the 2028 Annual General Meeting when a similar resolution will
be put forward for Shareholders’ approval.
Dynam Capital, Ltd has been appointed as the Company’s
Investment Manager and is responsible for the day-to-day
management of the Company’s investment portfolio in
accordance with the Company’s investment policies, objectives
and restrictions.
Annual Redemption Facility
At the Extraordinary General Meeting of the Company held on
21 December 2023 shareholders voted in favour of a proposal
that introduced an innovative redemption structure that gives
shareholders an annual opportunity to realise their holding in the
Company at fair market value. The first Redemption Point was on
30 September 2024 and every year thereafter.
As part of the introduction of the redemption facility the Company
was accepted into the Reporting Fund regime by HMRC with
effect from 1 July 2024. Further details on the tax consequences
are detailed in the Circular dated 27 November 2023.
Shareholders are advised to consider their investment objectives
and their own individual financial and tax circumstances and
should seek independent professional tax advice and advice from
their own independent financial adviser authorised under the
Financial Services and Markets Act 2000 as appropriate.
Results
The net loss for the year ended 30 June 2025 amounted to USD
2,850,696 (2024: net profit of USD 26,522,608). There were no
dividends declared during the year ended 30 June 2025 (2024:
USD nil).
Directors’ Report
Going Concern
The financial position of the Company, its cash flows and liquidity
position are described in Financial Statements and the Notes
to Financial Statements. These also contain the Company’s
objectives, policies, processes for managing its capital, its
financial risks management objectives, details of its financial
instruments, and its exposures to credit risk and liquidity risk.
The Company’s forecasts and projections have been stress tested
taking into account the potential for (i) asset value declines, (ii)
declines in cash dividends from equities held in the portfolio and
(iii) share buybacks and tender offers. The Directors note that
the underlying liquidity of Vietnamese stocks has continued
to improve during the year. The Director’s also note that the
portfolio is composed of a high percentage of larger and more
liquid stocks. Lastly, the Directors note that at year-end the
portfolio is comprised of cash and quoted stocks only. The
Company’s liquidity position, taking into account cash held and
with the ability to sell underlying assets to meet share buybacks,
tenders and to meet the operating costs of the Company, shows
that the Company is able to operate with appropriate liquidity
and be able to meet its liabilities as they fall due.
At the Annual General Meeting and Extraordinary General
meeting held on 21 December 2023, shareholders voted in
favour of the Company continuing for a further five years as
well as the introduction of an annual Redemption Facility. The
first Redemption Date was 30 September 2024 when a total of
3,411,748 ordinary shares were validly tendered.
On 2 September 2025, the Company announced a total of
4,198,773 ordinary shares were validly tendered for redemption
and will be redeemed under the 2025 redemption opportunity.
These ordinary shares represent approximately 17.9% of the
ordinary shares in issue as at 31 August 2025. The Board resolved
that the redemption price will be based on the Company’s
official net asset value per share as at 30 September 2025 and
it is anticipated that payments will be made to redeeming
shareholders by the end of October 2025. The portfolio liquidity
remains relatively high, and the investment manager does not
anticipate any difficulty in raising the cash required. Therefore,
the Board is confident that the redemption facility will not cause
any material uncertainty over the going concern of the Company.
The Directors have a reasonable expectation that the Company
will have adequate resources to continue its operations for the
foreseeable future. Thus, they continue to adopt the going concern
basis of accounting in preparing the financial statements.
Viability Statement
The Board has considered the viability period for the Company,
using the criteria set out in the UK Corporate Governance Code.
The Board considered the current position of the Company,
and its longer-term prospects, strategies as well as its principal
Annual Report 2025 Governance
37
risks in the current, medium and long-term, as detailed in the
Directors’ Report and in the Investment Manager’s Report on
pages 7 to 10, and emerging risks and uncertainties as outlined
on pages 24 to 26 The strategy provides long term direction
and is reviewed annually and further tested in a series of robust
downside financial scenarios as part of the annual review. These
scenarios included an assessment of those risks that would
threaten its strategic objectives, its business-as-usual state, its
business model and its future performance, solvency or liquidity.
The sensitivity analysis was applied to the forecasted cash
flows. Based on this assessment, the Board has determined that
a three-year viability period to 30 June 2028 is an appropriate
period and that the Company will be able to continue in operation
and meet its liabilities as they fall due over the period of three
years. The Board notes the second redemption period being in
September 2025. Given that the Company’s assets are listed
equities, and that the Investment Manager has estimated that
on prevailing market conditions more than 95% of the portfolio
could be liquidated in less than 30 days, the Board is comfortable
that enough liquidity could be generated to satisfy any amount
of redemption request made by shareholders. The Board also
travelled to Vietnam in November 2024, meeting with the
research team of the Investment Manager, portfolio companies
and market commentators, and will visit again in December 2025.
In arriving at this conclusion, the Board considered:
A. The volatility of global economic conditions, the impact
of trade tariffs, the war in Ukraine and inflation:
The Board considered the impact and effectiveness of mitigation
strategies being mandated by governments in impacted
countries; the adverse financial impact already being experienced
by the Company: the disruption to economic activity and
financial pressures and impact on investments in the Company’s
portfolio. The Board also engaged with the Investment Manager
on the longer-term impact of climate change, and other societal
change factors, to the portfolio. Additionally, the Board took into
consideration the impact on the capital markets in Vietnam; the
existence and effectiveness of business continuity plans of the
Company and its service providers that had been tried and tested
during the COVID-19 pandemic. The Board reviewed macro-
reports and updates from the Investment Manager detailing the
impacts of rising inflation and rising interest rates in the US and
Europe on Vietnam, risks of global recession and also the direct
impacts of the continuing war in Ukraine. The Board also kept
a close watch on the developing global trade tensions and the
various tariff schemes being negotiated by the US Government.
B. Business environment:
Despite the continuing visible signs of economic recovery which
the Board were able to see first-hand on their visit to Vietnam in
November 2024, evidenced in part by greater tourist arrivals (back
to pre-pandemic levels) and broader economic recovery, the
domestic real-estate market, bond market and consumer market
have faced some challenges. The Company’s strategy for investing
in a portfolio of equities in Vietnam and targeting growth in the
value of the portfolio over the medium term is unchanged and
this coupled with a nimble approach to portfolio construction has
helped the Company navigate the uncertain market conditions.
The combination of potential structural opportunities that
may benefit Vietnam as a destination for manufacturing, and
the opportunities within the growing domestic market provide
attractive investment opportunities. The direct impact of the
war in Ukraine on Vietnam appears to be manageable, with less
than 1% of trade to Russia and Ukraine. The levels of inflation in
Vietnam are less pronounced than those in Europe and the US,
and the macro-economic position appears to be stronger than in
many other frontier and emerging economies.
C. Operations:
2024 was thankfully free from any significant operational
changes. The restrictions in place during the pandemic of 2020-
2022 tested the Business Continuity protocols of the Board, the
Investment Manager and other service providers. The smooth
operation of the Company through the various restrictions and
lockdowns reassured the Board that these protocols are effective
and can, if necessary, operate effectively without the need for
physical meetings or an office presence. The Board, Investment
Manager, Administrator, and other service providers have all
demonstrated that they can work effectively and efficiently, and
if needed remotely.
D. Investment:
The liquidity of the Company’s underlying portfolio is relatively
high: although average daily trading volumes on Vietnam’s
stock markets declined during the first half of the year, the
volumes recovered in the second half. All investments are in
listed companies which have relatively high liquidity. At year
end there were no unquoted investments and all securities are
‘Level 1’. It is estimated that 95% of the portfolio can be readily
liquidated in less than 30 days. The portfolio is un-geared and,
as it holds all listed securities, has sufficient liquidity to meet
the Company’s liabilities.
The current portfolio is low to medium risk based on
assessments both individually and in combination of liquidity
risk, credit risk, interest rate risk and currency risk. The
Investment Manager and the Board review and evaluate the
portfolio on a monthly basis.
•
•
38
GovernanceAnnual Report 2025 Governance
Share Capital and Share Buy-Backs
An active discount control mechanism to address the imbalance between the supply of and demand for ordinary shares using share
buybacks is employed by the Broker and monitored by the Board. At the Annual General Meeting (“AGM”) of the Company held on 7
November 2024, the Company was granted the general authority to purchase in the market up to 14.99% of the ordinary shares in issue.
This authority will expire at the AGM to be held in November 2025.
In the year ended 30 June 2025, 481,609 ordinary shares had been bought back with 246,505 cancelled under the Company’s share buyback
- programme and 235,104 shares held as treasury shares. Since the last AGM and up to 25 September 2025, being the latest practicable date
prior to publication of the report, the Company bought back a total of 272,174 ordinary shares, of which 261,179 were held as treasury shares.
The Company maintains a cash buffer to help meet on-going expenses. At 30 June 2025 this was 3.8 % of NAV.
Viability Statement (continued)
E. Principal risks:
The Board’s review considered the Company’s cash flows and income flows, with reference to operational, business, market, currency,
liquidity, interest rate and credit risk associated in financial instruments set out in Note 3 (Financial Instruments and Associated Risks)
and Note 4 (Operating Segments) of the financial statements on pages 56 to 60 The statistical modelling is used to quantify these risks,
which ensures that the Company holds sufficient financial assets and capital to mitigate the impact of these risks.
F. Income and expenses:
Directors’ Report (continued)
The Company has a portfolio that generates investment income through dividends payments. The cash dividends received can be
used to partially offset the Company’s on-going expenses. In the year under review, total on-going expenses were covered 0.46 times
by investment income. In the following year, the current investment income is forecast to cover 0.49 times the amount of on-going
expenses. In the stress-tested scenario with significant declines in cash dividends forecasted, the investment income is forecast to
cover 0.61 times on-going expenses.
NAV – reviews the performance of the portfolio
Discount to NAV – and reviews the average discount for the Company’s share price against its peer group
Given the adequate levels of cover set out above, the cash buffer, the liquidity levels and the overall portfolio risk, the Board has reasonable
expectations that the Company can continue in operation and meet its liabilities over the forecast period.
The Company’s viability depends on the global economy and markets continuing to function. The Board has also considered the possibility
of a wide-ranging collapse in corporate earnings and/or the market value of listed securities. To the latter point, it should be borne in
mind that a significant proportion of the Company’s expenses are in investment management fees linked to the level of net assets of the
Company, which are therefore variable in nature and would naturally reduce if the market value of the Company’s assets were to fall.
In order to maintain viability, the Company has robust risk controls as set out in the Directors’ Report and the risk management and control
framework have the objectives of monitoring and reducing the likelihood and impact of operational risks including poor judgement in
decision-making, risk-taking that exceeds the levels agreed by the Board, human error, or control processes being deliberately ignored.
In this context, the Board considers that the prospects for economic activity will remain such that the investment objective, policy and
strategy of the Company will be viable for the foreseeable future and through a period of at least three years from 30 June 2025.
Key Performance Indicators (“KPIS”)
To ensure the Company meets its objectives the Board evaluates the performance of the Investment Manager at least at each quarterly
Board meeting and takes into the following performance indicators:
•
•
•
•
Annual Report 2025 Governance
39
Opening balance at 1 July
Share issued during the year
Shares repurchased during the year
Shares redemption during the year
Closing balance at 30 June
Number of
Shares
Number of
Shares
USD’000 USD’000
27,284,892
113,500
(481,609)
(3,411,748)
27,725,104
-
(440,212)
-
23,505,035 27,284,892
(5,637)
585
(2,315)
(17,94 8)
(4,006)
-
(1,631)
-
(25,315) (5,637)
30 June 2025 30 June 2024
Share Buy-Backs to the Year-Ended 30 June 2025
Substantial Share Interests
The following shareholders owned 5% or more of the shares in issue of the Company, as stated on the lates share register as at 31 August 2025.
Deglora S.à r.l.
Citibank Nominees (Ireland) Designated Activity Company
ICM
Hargreaves Lansdown (Nominees) Limited
Discover Investment Company
4,493,637.0 0
2,095,854.00
1,706,765.00
1,532,150.00
1,415,776.00
19.40%
8.93%
7.27%
6.53%
6.03%
Number of
ordinary shares
Percentage of total
shares in issue
Shareholder
40
GovernanceAnnual Report 2025
The Directors are responsible for preparing the Annual Report
and Financial Statements in accordance with applicable law and
regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law they are
required to prepare the financial statements in accordance with
International Financial Reporting Standards (“IFRS”) as adopted
by the EU and applicable law. Under company law the Directors
must not approve the financial statements unless they are
satisfied that they give a true and fair view of the state of affairs
of the Company and of its profit or loss for that period.
In preparing these financial statements, the Directors are required
to:
The Directors are responsible for keeping proper accounting
records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any
time the financial position of the Company and enable them to
ensure that its financial statements comply with the Companies
(Guernsey) Law, 2008. They are responsible for such internal
control as they determine is necessary to enable the preparation
of financial statements that are free from material misstatement,
whether due to fraud or error, and have general responsibility for
taking such steps as are reasonably open to them to safeguard
the assets of the Company and to prevent and detect fraud and
other irregularities.
The Directors are responsible for the maintenance and integrity of
the corporate and financial information included on the Company’s
Statement of Directors’ Responsibilities
in Respect of the Annual Report and the Financial Statements
select suitable accounting policies and then apply them
consistently;
make judgements and estimates that are reasonable, relevant
and reliable;
state whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the financial statements;
assess the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern; and
use the going concern basis of accounting unless they either
intend to liquidate the Company or to cease operations or
have no realistic alternative but to do so.
the financial statements, prepared in accordance with the
International Financial Reporting Standards as adopted by the
EU (“IFRS”), give a true and fair view of the assets, liabilities,
financial position and profit or loss of the Company; and
the Directors’ Report includes a fair review of the development
and performance of the business and the position of the
issuer, together with a description of the principal risks and
uncertainties that they face.
We consider the Annual Report and Financial Statements taken
as a whole, is fair, balanced and understandable and provides the
information necessary for shareholders to assess the Company’s
position and performance, business model and strategy.
For and on behalf of the Board
•
•
•
•
•
•
•
Hiroshi Funaki
Chairman
30 September 2025
website. Legislation in Guernsey governing the preparation and
dissemination of financial statements may differ from legislation
in other jurisdictions.
The Directors who hold office at the date of approval of this
Director’s Report confirm that so far as they are aware, there is
no relevant audit information of which the Company’s auditor is
unaware, and that each Director has taken all the steps he ought
to have taken as a Director to make themselves aware of any
relevant audit information and to establish that the Company’s
auditor is aware of that information.
Compliance with Disclosure and Transparency Directive
We confirm that to the best of our knowledge:
Annual Report 2025 Governance
41
Governance
42
Annual Report 2025
Our opinion is unmodified
We have audited the financial statements of VietNam Holding Limited (the “Company”), which comprise the statement of financial
position as at 30 June 2025, the statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes,
comprising material accounting policies and other explanatory information.
In our opinion, the accompanying financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities
are described below. We have fulfilled our ethical responsibilities under, and are independent of the Company in accordance with, UK
ethical requirements including the FRC Ethical Standard as required by the Crown Dependencies’ Audit Rules and Guidance. We believe that
the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.
Key audit matters: our assessment of the risks of material misstatement
Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the financial statements
and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us, including those
which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the
engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters. In arriving at our audit opinion above, the key audit matter
was as follows (unchanged from 2024):
Independent Auditor’s Report
to the Members of VietNam Holding Limited
Valuation of Investments in securities at
fair value
$113,668,414; (2024: $134,971,131)
Refer to page 33 of the Audit and Risk
Committee Report, note 2d accounting
policies and note 13 disclosures.
Basis:
The Company’s investment portfolio
consists of listed equity securities trading
on the Vietnamese stock exchange (the
“Investments”). These Investments,
carried at a fair value, are valued by the
Company based on quoted prices in an
active market for that instrument.
Risk:
The valuation of investments, due to their
magnitude in the context of the financial
statements as a whole, is considered to be
the area which has the greatest effect on
our overall audit strategy and allocation of
resources in planning and completing our
audit.
Our audit procedures included:
Internal Controls:
We evaluated the design and implementation
of the key control over the valuation of
Investments.
Use of KPMG Specialists:
We engaged our own valuation specialist
to independently price Investments to third
party pricing sources.
Assessing disclosures:
We considered the Company’s disclosures
(see notes 2b and 2d) in relation to the use
of estimates and judgements regarding
the valuation of investments and the
Company’s investment valuation policies
and fair value disclosures in note 13 “Fair
Value Information” for compliance with
IFRS.
Annual Report 2025
give a true and fair view of the financial position of the Company as at 30 June 2025, and of the Company’s financial performance
and cash flows for the year then ended;
are prepared in accordance with International Financial Reporting Standards as adopted by the EU (“IFRS”); and
comply with the Companies (Guernsey) Law, 2008.
•
•
•
The risk Our response
Financial Statements
43
Our application of materiality and an overview of the scope of our audit
Materiality for the financial statements as a whole was set at $2,110,000, determined with reference to a benchmark of net assets of
$117,622,802 of which it represents approximately 2.0% (2024: 2.0%).
In line with our audit methodology, our procedures on individual account balances and disclosures were performed to a lower threshold,
performance materiality, so as to reduce to an acceptable level the risk that individually immaterial misstatements in individual account
balances add up to a material amount across the financial statements as a whole. Performance materiality for the Company was set at
75% (2024: 75%) of materiality for the financial statements as a whole, which equates to $1,580,000. We applied this percentage in our
determination of performance materiality because we did not identify any factors indicating an elevated level of risk.
We reported to the Audit Committee any corrected or uncorrected identified misstatements exceeding $105,000, in addition to other
identified misstatements that warranted reporting on qualitative grounds.
Our audit of the Company was undertaken to the materiality level specified above, which has informed our identification of significant risks
of material misstatement and the associated audit procedures performed in those areas as detailed above.
Going concern
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease
its operations, and as they have concluded that the Company’s financial position means that this is realistic. They have also concluded that
there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year
from the date of approval of the financial statements (the “going concern period”).
In our evaluation of the directors’ conclusions, we considered the inherent risks to the Company’s business model and analysed how those
risks might affect the Company’s financial resources or ability to continue operations over the going concern period. The risks that we
considered most likely to affect the Company’s financial resources or ability to continue operations over this period was availability of
capital to meet operating costs and other financial commitments.
We considered whether these risks could plausibly affect the liquidity going concern period by comparing severe, but plausible downside
scenarios that could arise from these risks individually and collectively against the level of available financial resources indicated by the
Company’s financial forecasts.
We considered whether the disclosure in note 2(b) to the financial statements gives a full and accurate description of the directors’
assessment of going concern.
Our conclusions based on this work:
44
Financial Statements
we consider that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is
appropriate;
we have not identified, and concur with the directors’ assessment that there is not, a material uncertainty related to events or
conditions that, individually or collectively, may cast significant doubt on the the Company’s ability to continue as a going concern
for the going concern period; and
we have nothing material to add or draw attention to in relation to the directors’ statement in the notes to the financial statements on
the use of the going concern basis of accounting with no material uncertainties that may cast significant doubt over the Company’s
use of that basis for the going concern period, and that statement is materially consistent with the financial statements and our
audit knowledge.
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent
with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will
continue in operation.
•
•
•
Annual Report 2025
Annual Report 2025
Fraud and breaches of laws and regulations – ability to detect
Identifying and responding to risks of material misstatement due to fraud
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or
pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from
our sector experience and through discussion with management (as required by auditing standards), and from inspection of the Company’s
regulatory and legal correspondence, if any, and discussed with management the policies and procedures regarding compliance with
laws and regulations. As the Company is regulated, our assessment of risks involved gaining an understanding of the control environment
including the entity’s procedures for complying with regulatory requirements.
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and
taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related
financial statement items.
The Company is subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts
or disclosures in the financial statements, for instance through the imposition of fines or litigation or impacts on the Company’s ability to
operate. We identified financial services regulation as being the area most likely to have such an effect, recognising the regulated nature of
the Company’s activities and its legal form. Auditing standards limit the required audit procedures to identify non-compliance with these
laws and regulations to enquiry of management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of
operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements
in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For
example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial
statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remains a higher risk of non-detection of fraud, as this may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement.
We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and
regulations.
As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that
management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to
revenue recognition because the Company’s revenue streams are simple in nature with respect to accounting policy choice, and are easily
verifiable to external data sources or agreements with little or no requirement for estimation from management. We did not identify any
additional fraud risks.
We performed procedures including
Independent Auditor’s Report
to the Members of VietNam Holding Limited (continued)
enquiring of management as to the Company’s policies and procedures to prevent and detect fraud as well as enquiring whether
management have knowledge of any actual, suspected or alleged fraud;
reading minutes of meetings of those charged with governance; and
using analytical procedures to identify any unusual or unexpected relationships.
Identifying journal entries and other adjustments to test based on risk criteria and comparing any identified entries to supporting
documentation; and
incorporating an element of unpredictability in our audit procedures.
•
•
•
•
•
Financial Statements
45
46
Financial Statements
the directors’ confirmation within the Viability Statement (pages 37 - 39) that they have carried out a robust assessment of the
emerging and principal risks facing the Company, including those that would threaten its business model, future performance,
solvency or liquidity;
the emerging and principal risks disclosures describing these risks and explaining how they are being managed or mitigated;
the directors’ explanation in the Viability Statement (pages 37 - 39) as to how they have assessed the prospects of the Company, over
what period they have done so and why they consider that period to be appropriate, and their statement as to whether they have a
reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the period
of their assessment, including any related disclosures drawing attention to any necessary qualifications or assumptions.
the directors’ statement that they consider that the annual report and financial statements taken as a whole is fair, balanced
and understandable, and provides the information necessary for shareholders to assess the Company’s position and performance,
business model and strategy;
the section of the annual report describing the work of the Audit Committee, including the significant issues that the audit committee
considered in relation to the financial statements, and how these issues were addressed; and
the section of the annual report that describes the review of the effectiveness of the Company’s risk management and internal
control systems.
the Company has not kept proper accounting records; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations, which to the best of our knowledge and belief are necessary for the
purpose of our audit.
Corporate governance disclosures
We are required to perform procedures to identify whether there is a material inconsistency between the directors’ corporate governance
disclosures and the financial statements and our audit knowledge.
Based on those procedures, we have concluded that each of the following is materially consistent with the financial statements and our
audit knowledge:
We are also required to review the Viability Statement, set out on pages 37 - 39 under the Listing Rules. Based on the above procedures,
we have concluded that the above disclosures are materially consistent with the financial statements and our audit knowledge.
We are required to review the part of the Corporate Governance Statement relating to the Company’s compliance with the provisions of
the UK Corporate Governance Code specified by the Listing Rules for our review. We have nothing to report in this respect.
We have nothing to report on other matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies (Guernsey) Law, 2008 requires us to report to you if,
in our opinion:
•
•
•
•
•
•
•
•
•
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report but
does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the
other information and we do not express an audit opinion or any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Disclosures of emerging and principal risks and longer term viability
We are required to perform procedures to identify whether there is a material inconsistency between the directors’ disclosures in respect of
emerging and principal risks and the viability statement, and the financial statements and our audit knowledge. we have nothing material
to add or draw attention to in relation to:
Annual Report 2025
Andrew J. Salisbury
For and on behalf of KPMG Channel Islands Limited
Chartered Accountants and Recognised Auditors
Guernsey
30 September 2025
Annual Report 2025
Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page 41, the directors are responsible for: the preparation of the financial statements
including being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting
unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not
guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.
The purpose of this report and restrictions on its use by persons other than the Company’s members as a body
This report is made solely to the Company’s members, as a body, in accordance with section 262 of the Companies (Guernsey) Law, 2008.
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in
an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.
Independent Auditor’s Report
to the Members of VietNam Holding Limited (continued)
Financial Statements
47
Statement of Financial Position
As at 30 June 2025
The financial statements on pages 48 to 66 were approved by the Board of Directors on 30 September 2025 and were signed on its behalf by
The accompanying notes on pages 52 to 66 form an integral part of these financial statements.
Philip Scales
Chairman of the Audit and Risk Committee
Hiroshi Funaki
Chairman of the Board of Directors
Liabilities
Payables on purchase of investments
Accrued expenses
Assets
Non-current assets
Investments at fair value through profit or loss 134,971,1313
Current assets
Cash and cash equivalents
Accrued dividends and interest
Receivables on sale of investments
2,894,425
73,797
2,451,845
4,524,725
71,94 4
175,246
Equity
Share capital
Reserve for own shares
Retained earnings
166,645,041
(172,281,084)
145,787,428
167,230,519
(192,544,450)
142,936,733
596,605
220,922
-
239,813
Total non-current assets 134,971,131113,668,414
Total current assets 5,420,0674,771,915
Total assets 140,391,198
118,440,329
Total equity 140,151,385117,622,802
Total liabilities 239,813817,527
Total equity and liabilities
140,391,198118,440,329
113,668,414
2025
USD
2024
USD
Notes
48
Financial Statements Annual Report 2025
The accompanying notes on pages 52 to 66 form an integral part of these financial statements.
Statement of Comprehensive Income
For the year ended 30 June 2025
Dividend income from equity securities at fair value through profit or loss
Net (loss)/gain from investments at fair value through profit or loss
Net foreign exchange loss
Interest income
2,949,474
28,035,973
(27 7,039)
-
1,020,856
2,189,005
96,584
329,292
119,014
221,457
92,885
823,315
8
8
9
10
11
7
15
30,708,408
2,237,255
81,744
362,837
127,617
214,218
7,769
1,154,360
Total operating income
Investment management fees
Advisory fees
Directors’ fees and expenses
Custodian fees
Administrative and accounting fees
Audit fees
Other expenses
Total operating expenses
Other comprehensive income
Total comprehensive (loss)/income for the year
4,185,800
3,871,552
-
(2,850,696)
-
26,522,608
(Loss)/profit for the year
26,522,608(2,850,696)
Basic and diluted (loss)/income per share 0.97(0.11)
Notes
1,771,945
(564,287)
(210,268)
23,466
2025
USD
2024
USD
Annual Report 2025 Financial Statements
49
The accompanying notes on pages 52 to 66 form an integral part of these financial statements.
Balance at 1 July 2023
Total comprehensive income for the year
Change in net assets attributable to shareholders
115,259,277
26,522,608
119,264,820
26,522,608
166,645,041
-
(170,650,584)
-
Balance at 1 July 2024
Total comprehensive loss for the year
Change in net assets attributable to shareholders
(172,281,084)
-
145,787,428
(2,850,696)
140,151,385
(2,850,696)
166,645,041
-
Transactions in shares
Repurchase of own shares (note 5)
Total comprehensive income for the year
(1,630,500)
-
(1,630,500)
-
Transactions in shares
Issuance of ordinary shares (note 5)
Repurchase of own shares (note 5)
Redemption of ordinary shares (note 5)
585,478
(2,315,011)
(17,94 8,355)
(19,677,888)
-
-
-
-
-
(2,315,011)
(17,94 8,355)
(20,263,366)
585,478
-
-
585,478
26,522,60826,522,608--
(1,630,500)-(1,630,500)-
Balance at 30 June 2024
Total comprehensive loss for the year
Total transactions in shares
Total transactions in shares
140,151,385145,787,428
(172,281,084)
166,645,041
--
Balance at 30 June 2025 117,622,802142,936,733(192,544,450)167,230,519
Share
capital
USD
Reserve for
own shares
USD
Total
USD
Retained
earnings
USD
(2,850,696)(2,850,696)
Statement of Changes in Equity
For the year ended 30 June 2025
50
Financial Statements Annual Report 2025
Statement of Cash Flows
For the year ended 30 June 2025
The accompanying notes on pages 52 to 66 form an integral part of these financial statements.
Cash flows from operating activities
Total comprehensive (loss)/income for the year
Adjustments to reconcile total comprehensive (loss)/income
to net cash from operating activities:
Dividend income
Interest income
Net loss/(gain) from investments at fair value through profit or loss
Net foreign exchange loss
Purchase of investments
Proceeds from sale of investments
Changes in working capital
Decrease in accrued expenses
Dividends received
Interest received
Net cash from operating activities
Cash flows used in financing activities
Issuance of ordinary shares
Repurchase of own shares
Redemption of ordinary shares
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Effect of exchange rate fluctuations on cash held
Net cash used in financing activities
Cash and cash equivalents at end of the year
(1,876,969)
2,894,425
21,518,456
585,478
(2,315,011)
(17,94 8,355)
3,298,364
-
(1,876,969)
-
(19,677,888)
4,524,725
2025
USD
2024
USD
Notes
(2,850,696)
7
(1,771,945)
(23,466)
564,287
210,268
(51,028,666)
74,640,301
(18,891)
1,773,798
23,466
1,840,568
2,894,425
(210,268)
(101,833)
3,258,659
-
1,421,395
1,750,069
(27 7,039)
(2,949,474)
-
(28,035,973)
277,039
(65,175,759)
69,503,097
26,522,608
Annual Report 2025 Financial Statements
51
1. The Company
VietNam Holding Limited (the “Company”) is a closed-end investment company that was incorporated in the Cayman Islands on 20 April
2006 as an exempted company with limited liability under registration number 166182. On 25 February 2019, the Company, via a process
of cross-border continuance, transferred its legal domicile from the Cayman Islands to Guernsey and was registered as a closed-ended
company limited by shares incorporated in Guernsey with registered number 66090.
On 8 March 2019 the Company’s ordinary shares were cancelled from trading on AIM and admitted to the Main Market (previously the
Premium Segment of the Official List), and trading on the Main Market of the London Stock Exchange (“Main Market”). On the same date
the Company’s shares were admitted to listing and trading on the Official List of The International Stock Exchange (“TISE”).
The investment objective of the Company is to achieve long-term capital appreciation by investing in a diversified portfolio of companies
that have high growth potential at an attractive valuation.
At the Extraordinary General Meeting held on 21 December 2023 the Shareholders voted in favour of the continuance resolution, authorising
the Company to operate in its current form through to the 2028 Annual General Meeting when a similar resolution will be put forward for
Shareholders’ approval.
Dynam Capital, Ltd has been appointed as the Company’s Investment Manager and is responsible for the day-to-day management of the
Company’s investment portfolio in accordance with the Company’s investment policies, objectives and restrictions.
Apex Fund and Corporate Services (Guernsey) Limited is the Company’s administrator.
Standard Chartered Bank (Singapore) Limited and Standard Chartered Bank (Vietnam) Limited are the custodian and the sub-custodian
respectively. Standard Chartered Bank (Singapore) Limited is also the sub-administrator.
The registered office of the Company is 1 Royal Plaza, Royal Avenue, St Peter Port, Guernsey, GY1 2HL.
2. Material Accounting Policies
(a) Statement of compliance
These financial statements, which give a true and fair view, have been prepared in accordance with the International Financial Reporting
Standards (“IFRSs”) as adopted by the European Union (“EU”) and comply with the Companies (Guernsey) Law, 2008.
(b) Basis of preparation
The financial statements are presented in United States dollars (“USD”), which is the Company’s functional currency. The financial
statements have been prepared on a going concern basis, applying the historical cost convention, except for the measurement of
investments at fair value through profit or loss.
Going concern
The Directors have reasonable expectations and are satisfied that the Company has adequate resources to continue its operations and
meet its commitments for the foreseeable future and they continue to adopt the going concern basis for the preparation of the financial
statements. In making this statement, the Directors confirm the Company’s forecasts and projections have been stress tested taking into
account the potential for (i) asset value declines, (ii) declines in cash dividends from equities held in the portfolio and (iii) share buybacks
and tender offers. The Directors note that the underlying liquidity of Vietnamese stocks has continued to improve during the year. The
Director’s also note that the portfolio is composed of a higher percentage of larger and more liquid stocks. Lastly, the Directors note that
at year-end the portfolio is comprised of cash and quoted stocks only. The Company’s liquidity position, taking into account cash held and
with the ability to sell underlying assets to meet share buybacks, tenders and to meet the operating costs of the Company, shows that the
Company is able to operate with appropriate liquidity and be able to meet its liabilities as they fall due. At the Annual General Meeting and
Extraordinary General meeting held on 21 December 2023, shareholders voted in favour of the Company continuing for a further five years
as well as the introduction of an annual Redemption Facility. The first Redemption Date was 30 September 2024 when a total of 3,406,598
ordinary shares were validly tendered for redemption.
Notes to the Financial Statements
For the year ended 30 June 2025
52
Financial Statements Annual Report 2025
2. Material Accounting Policies (continued)
On 2 September 2025, the Company announced a total of 4,198,773 ordinary shares were validly tendered for redemption and will be
redeemed under the 2025 redemption opportunity. These ordinary shares represent approximately 17.9% of the ordinary shares in issue as
at 31 August 2025. The Board resolved that the redemption price will be based on the Company’s official net asset value per share as at
30 September 2025 and it is anticipated that payments will be made to redeeming shareholders by the end of October 2025. The portfolio
liquidity remains relatively high, and the investment manager does not anticipate any difficulty in raising the cash required. Therefore, the
Board is confident that the redemption facility will not cause any material uncertainty over the going concern of the Company.
The Directors have a reasonable expectation that the Company will have adequate resources to continue its operations for the foreseeable
future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
Critical accounting estimates and judgements
The preparation of financial statements in accordance with IFRS as adopted by the EU requires management to make judgements,
estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses.
Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in
the financial statements are included below:
Functional currency
The Company’s shares were issued in USD and the listing of the shares on the Main Market and TISE is in USD. The performance of the
Company is measured and reported to the investors in USD, although the primary activity of the Company is to invest in the Vietnamese
market. The Board considers the USD as the currency that most faithfully represents the economic effects of the underlying transactions,
events and conditions.
(c) Foreign currency translation
Transactions in foreign currencies are translated into USD at the applicable rates on the dates of the transactions. Monetary assets
and liabilities denominated in foreign currencies are re-translated to USD at the applicable rates on the year-end date. Foreign currency
exchange differences relating to investments at fair value through profit or loss are included in the realised and unrealised gains and losses
on those investments within “Net gain/(loss) from investments at fair value through profit or loss” on the Statement of Comprehensive
Income. All other foreign currency exchange differences relating to other monetary items, including cash and cash equivalents, are included
in net foreign exchange gains and losses in the Statement of Comprehensive Income.
(d) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.
(i) Classification
In accordance with IFRS 9, the Company classifies its financial assets and financial liabilities at initial recognition into the categories of
financial assets and financial liabilities discussed below.
Financial assets
The Company classifies its financial assets as subsequently measured at amortised cost or measured at fair value through profit or loss on
the basis of both:
Notes to the Financial Statements
For the year ended 30 June 2025 (continued)
The entity’s business model for managing the financial assets
The contractual cash flow characteristics of the financial assets
Financial assets measured at amortised cost
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold financial assets in order to
collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding. The Company includes in this category accrued dividends and interest, cash and cash
equivalents and receivables on sale of investments.
•
•
Annual Report 2025 Financial Statements
53
A financial asset is measured at fair value through profit or loss if:
a) Its contractual terms do not give rise to cash flows on specified dates that are solely payments of principal
and interest (SPPI) on the principal amount outstanding; or
b) It is not held within a business model whose objective is either to collect contractual cash flows, or to both
collect contractual cash flows and sell; or
c) At initial recognition, it is irrevocably designated as measured at FVTPL when doing so eliminates or
significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring
assets or liabilities or recognising the gains and losses on them on different bases.
The Company measures all its investments at FVTPL.
Financial liabilities — Classification, subsequent measurement and gains and losses
Financial liabilities are classified as measured at amortised cost or FVTPL.
A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are
recognised in statement of comprehensive income. Other financial liabilities are subsequently measured at amortised cost using the
effective interest method. Interest expense and foreign exchange gains and losses are recognised in statement of comprehensive
income. Any gain or loss on derecognition is also recognised in statement of comprehensive income.
Financial liabilities measured at amortised cost
Other financial liabilities are measured at amortised cost. The Company includes in this category payables on purchase of investments
and accrued expenses.
(ii) Recognition and initial measurement
Financial assets and liabilities at fair value through profit or loss are recognised initially on the trade date, which is the date that the
Company becomes a party to the contractual provisions of the instrument. Other financial assets and liabilities are recognised on the
date they originated.
Financial assets and financial liabilities at fair value through profit or loss are recognised initially at fair value, with transaction costs
recognised in the Statement of Comprehensive Income. Financial assets or financial liabilities not at fair value through profit or loss are
recognised initially at fair value plus transaction costs that are directly attributable to their acquisition or issue.
(iii) Subsequent measurement
After initial measurement, the Company measures financial instruments which are classified as FVTPL at fair value. Subsequent changes
in the fair value of those financial instruments are recorded in net gain or loss on financial assets and liabilities at FVTPL in the Statement
of Comprehensive Income. Interest and dividends earned or paid on these instruments are recorded separately in interest income or
expense and dividend income in the Statement of Comprehensive Income.
(iv) Derecognition
A financial asset is derecognised when the Company no longer has control over the contractual rights that comprise that asset. This
occurs when the rights are realised, expire or are surrendered.
Financial assets that are sold are derecognised, and the corresponding receivables from the buyer for the payment are recognised on
the trade date, being the date the Company commits to sell the assets.
A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expired.
54
Financial Statements Annual Report 2025
2. Material Accounting Policies (continued)
(v) Fair value measurement
‘Fair value’ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Company has
access at that date. The fair value of a liability reflects its non-performance risk.
When available, the Company measures the fair value of an instrument using the quoted price in an active market for that instrument.
A market is regarded as ‘active’ if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing
information on an ongoing basis. The Company measures instruments quoted in an active market at the last traded price.
If there is no quoted price in an active market, then the Company uses valuation techniques that maximise the use of relevant
observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that
market participants would consider in pricing a transaction.
The Company recognises transfers between levels of the fair value hierarchy as at the end of the reporting period during which the
change has occurred.
Any increases or decreases in fair value are recognised in the Statement of Comprehensive Income as an unrealised gain or loss from
investments at FVTPL.
(vi) Impairment of financial assets
At each reporting date, the Company measures the loss allowance on financial assets carried at amortised cost at an amount equal to
the lifetime expected credit losses if the credit risk has increased significantly since initial recognition. If, at the reporting date, the credit
risk has not increased significantly since initial recognition, the Company measures the loss allowance at an amount equal to 12-month
expected credit losses. The measurement of expected credit losses is a function of the probability of default, loss given default (i.e.
the magnitude of the loss if there is a default) and exposure at the default. The assessment of the probability of default and loss given
default is based on historical data adjusted by forward-looking information.
(vii) Cash and cash equivalents
Cash comprises current deposits with banks. Cash equivalents are short-term highly liquid investments that are readily convertible to
known amounts of cash, are subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term cash
commitments rather than for investment or other purposes.
(e) Offsetting
Financial assets and liabilities are offset, and the net amount is reported in the Statement of Financial Position when, and only when,
the Company has a legally enforceable right to set off the recognised amounts and the transactions are intended to be settled on a net
basis or simultaneously, e.g. through a market clearing mechanism.
(f) Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a
deduction from equity, net of any tax effects.
Repurchase, disposal and reissue of share capital (treasury shares)
Where the Company purchases its own share capital, the consideration paid, which includes any directly attributable costs, is recognised
as a deduction from equity shareholders’ funds through the Company’s reserves for own shares. The reserves for own shares represents
share capital which can be reissued in the future or subsequently cancelled. When such shares are subsequently sold or re-issued to the
market any consideration received, net of any directly attributable incremental transaction costs, is recognised as an increase in equity
shareholders’ funds through the reserve of own shares account.
Notes to the Financial Statements
For the year ended 30 June 2025 (continued)
Annual Report 2025 Financial Statements
55
(g) Tax
Tax expense comprises current tax. Current tax is recognised in the Statement of Comprehensive Income except to the extent that it
relates to items recognised directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively
enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
The Company is a tax resident in Guernsey and is subject to the standard rate of 0% on taxable income.
The Company is liable to Vietnamese transactional tax of 0.1% (2024: 0.1%) on the sales proceeds of the onshore sale of equity
investments. The related taxes on onshore sales proceeds are accounted for at net amount in the Statement of Comprehensive
Income.
(h) Interest income and expense
Interest income and expense is recognised in the Statement of Comprehensive Income using the effective rate method. The effective
interest rate method is a method of calculating the amortised cost of a financial asset or financial liability and of allocating the
interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash payments or receipts throughout the expected life of the financial instrument – or, when appropriate, a shorter period – to
the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Directors estimate cash flows considering all contractual terms of the financial
instrument but do not consider future credit losses. The calculation includes all fees and points paid or received between parties to
the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts.
(i) Dividend income
Dividend income is recognised in the Statement of Comprehensive Income on the date on which the right to receive payment is
established. For listed equity securities, this is usually the ex-dividend date. Dividend income from equity securities designated as at
fair value through profit or loss is recognised in the Statement of Comprehensive Income as a separate line item.
(j) Fee and commission expense
Fees and commission expenses are recognised in the Statement of Comprehensive Income as the related services are performed.
(k) Earnings per share
The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by
dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares
outstanding during the year, adjusted for own shares held.
3. Financial Instruments and Associated Risks
Financial assets of the Company include investments at fair value through profit or loss, cash and cash equivalents, receivables
on sale of investments, and accrued dividends and interest. Financial liabilities comprise payables on purchase of investments,
payables on repurchase of shares and accrued expenses. Accounting policies for financial assets and liabilities are set out in
note 2.
The Company’s investment activities expose it to various types of risk that are associated with the financial instruments and the markets
in which it invests. The most important types of financial risk to which the Company is exposed are market risk (which includes price risk,
currency risk, and interest rate risk), credit risk and liquidity risk.
56
Financial Statements Annual Report 2025
3. Financial Instruments and Associated Risks (continued)
Asset allocation is determined by the Company’s Investment Manager who manages the distribution of the assets to achieve the
investment objectives. Divergence from target asset allocations and the composition of the portfolio is monitored by the Investment
Manager.
Market risk
Market risk is the risk that the value of a financial asset will fluctuate as a result of changes in market prices (e.g. interest rates, foreign
exchange rates, equity prices and credit spreads) whether or not those changes are caused by factors specific to the individual asset or
factors affecting all assets in the market. The Company is exposed to market risk within its investments purchased in the Vietnamese
market.
The overall market positions are monitored continuously by the Investment Manager and at least quarterly by the Board.
The Company’s investments in securities are exposed to market risk and are disclosed by the following generic investment types:
At 30 June 2025, a 5% reduction in the market value of the portfolio would have led to a reduction in NAV and profit or loss of USD
5,683,421 (2024: USD 6,748,557). A 5% increase in market value would have led to an equal and opposite effect on NAV and profit or
loss.
Currency risk
The Company may invest in financial instruments and enter into transactions denominated in currencies other than its functional
currency. Consequently, the Company is exposed to risks that the exchange rate of its currency relative to other currencies may
change and have an adverse effect on the value of the Company’s financial assets or liabilities denominated in currencies other than
USD.
The Company’s net assets are calculated every month based on the most up to date exchange rates while the general economic and
foreign currency environment is continuously monitored by the Investment Manager and reviewed by the Board at least once each
quarter.
The Company may enter into arrangements to hedge currency risks if such arrangements become desirable and practicable in the
future in the interest of efficient portfolio management.
As at 30 June 2025, the Company had the following foreign currency exposures:
Notes to the Financial Statements
For the year ended 30 June 2025 (continued)
96.30
96.30
Investments in listed securities
Fair value
in USD
2024
Fair value
in USD
% of
net assets
% of
net assets
113,668,414
113,668,414
134,971,131
134,971,131
96.64
96.64
2025
140,090,931
6,498
174
4,456
Vietnamese Dong
Pound Sterling
Swiss Franc
Euro
Fair value
2025
USD
2024
USD
117,293,753
2,793
197
4,880
117,301,623 140,102,059
Annual Report 2025 Financial Statements
57
At 30 June 2025, a 5% reduction in the value of the Vietnamese Dong, Pound Sterling, Swiss Franc, Euro versus the US Dollar would
have led to a reduction in NAV and profit or loss of USD 5,864,688 (2024: USD 7,004,547), USD 140 (2024: USD 325), USD 10 (2024: USD
9) and USD 244 (2024: USD 223) respectively. A 5% increase in value would have led to an equal and opposite effect.
Interest rate risk
Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest
rates.
The majority of the Company’s financial assets are non-interest-bearing. Interest-bearing financial assets and interest-bearing
financial liabilities mature or reprice in the short-term, no longer than twelve months. As a result, the Company is subject to limited
exposure to interest rate risk due to fluctuations in the prevailing levels of market interest rates.
Credit risk
Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has
entered with the Company.
At 30 June 2025, the following financial assets were exposed to credit risk (including settlement risk): cash and cash equivalents,
receivables on sale of investments and accrued dividends and interest. The total amount of financial assets exposed to credit risk
amounted to USD 4,771,915 (2024: USD 5,420,067).
Substantially all the assets of the Company are held by the Company’s custodian, Standard Chartered Bank (Singapore) Limited.
Bankruptcy or insolvency of the custodian may cause the Company’s rights with respect to cash and securities held by the custodian
to be delayed or limited. The Company monitors its risk by monitoring the credit quality and financial positions of the custodian the
Company uses.
As at 30 June 2025, the Company’s custodian, Standard Chartered Bank (Singapore) Limited, was rated as A+ by Standard and Poor’s,
A1 by Moody’s and A+ by Fitch (2024: A+ by Standard and Poor’s, A1 by Moody’s and A+ by Fitch).
Concentration risk
Management identifies and monitors concentration risk through a set of investment restrictions embedded in the Company’s
investment policy. These include limits on exposure to individual companies and sectors, exclusion of certain asset classes, and daily
oversight via the Company’s risk and compliance system.
Concentrations are determined based on:
Counterparty exposure: No more than 20% of Net asset Value (“NAV”) invested in a single investee company.
Sector exposure: No more than 40% of NAV invested in any single Industry Classification Benchmark (“ICB”) classified sector.
Geographical and currency exposure: The portfolio is concentrated in Vietnam and primarily denominated in Vietnamese Dong
(“VND”), exposing it to country-specific and currency-related risks.
•
•
•
58
Financial Statements Annual Report 2025
3. Financial Instruments and Associated Risks (continued)
Notes to the Financial Statements
For the year ended 30 June 2025 (continued)
Banks
Retail
Real Estate
Industrial Goods and Services
Telecommunications
Financial Services
Travel and Leisure
Chemicals
Consumer Products and Services
Construction and Materials
Energy
Total
36%
17%
16%
11%
7%
7%
2%
2%
2%
-
-
100%
27%
14%
8%
17%
16%
6%
-
-
2%
4%
6%
100%
35%
16%
15%
11%
7%
7%
2%
2%
2%
-
-
97%
26%
13%
8%
16%
15%
6%
-
-
2%
4%
6%
96%
% of Portfolio % of Portfolio
2024
% of NAV % of NAV
2025
% of Equity Investments % of Equity Investments
Financial assets subject to IFRS 9’s impairment requirements
The Company’s financial assets subject to the expected credit loss model within IFRS 9 are cash and cash equivalents, and short-
term receivables, including accrued dividends and interest, and receivables on sale of investments. As at 30 June 2025, the total
of cash and cash equivalents, and short-term receivables was USD 4,771,915 (2024: USD 5,420,067). The Directors assessed the
lifetime expected credit loss as at 30 June 2025 and concluded it to be immaterial (2024: immaterial). There is not considered to
be any concentration of credit risk within these assets. No assets are considered impaired, and no amounts have been written off
in the year.
All short-term receivables are expected to be received in three months or less. An amount is considered to be in default if it has
not been received 30 days after it is due.
Liquidity risk
The Company, a closed-end investment company, invests in companies through listings on the Vietnam stock exchanges. However,
there is no guarantee that the Vietnam stock exchanges will provide liquidity for the Company’s investments.
The Company’s overall liquidity risks are monitored on at least a quarterly basis by the Board. The Company is a closed-end
investment company so Shareholders cannot repurchase their shares directly from the Company.
The Board has considered that there may be periods of time when parts of the portfolio are prone to higher liquidity risk, but is
satisfied overall that the fixed liabilities of the Company can be met by income or from selling sufficient marketable securities even
at periods of higher illiquidity.
Payables on purchase of investments and accrued expenses are generally payable within one year.
Annual Report 2025 Financial Statements
59
The table below summarises the maturity profile of the Company’s financial assets and liabilities based on contractual undiscounted
receipts and payments:
4. Operating Segments
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses,
including revenues and expenses that relate to transactions with any of the Company’s other components. The Company is engaged in a
single segment of business, being investment in Vietnam. The Board, as a whole, has been determined as constituting the chief operating
decision maker of the Company. The key measure of performance used by the Board to assess the Company’s performance and to allocate
resources is the total return on the Company’s NAV calculated as per the prospectus.
Information on gains and losses derived from investments are disclosed in the Statement of Comprehensive Income.
The Company is domiciled in Guernsey, Channel Islands. Entity wide disclosures are provided as the Company is engaged in a single segment of
business, investing in Vietnam. In presenting information on the basis of geographical segments, segment investments and the corresponding
segment net investment income arising thereon are determined based on the country of domicile of the respective investment entities.
In line with the Company’s investment policy, the Company may invest:
2025
Cash and cash equivalents
Investment at fair value through profit and loss
Accrued dividends and interest
Receivables on sale of investments
Payables in purchase of investments
Accrued expenses
2024
Cash and cash equivalents
Investment at fair value through profit and loss
Accrued dividends and interest
Receivables on sale of investments
Accrued expenses
Total financial assets
Total financial assets
Total financial liabilities
Total financial liabilities
4,524,725
-
-
-
2,894,425
-
-
-
-
4,524,725
-
-
2,894,425
-
-
-
-
71,944
175,246
-
-
73,797
2,451,845
239,813
247,190
596,605
220,922
2,525,642
817,527
239,813
-
113,668,414
-
-
-
134,971,131
-
-
-
113,668,414
-
-
134,971,131
-
-
4,524,725
113,668,414
71,944
175,246
2,894,425
134,971,131
73,797
2,451,845
239,813
118,440,329
596,605
220,922
140,391,198
817,527
239,813
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
USD
No fixed
maturity
USD
Over
3 months
to 5 years
USD
1 to 3
months
USD
On demand
USD
0 to 1
month
USD
up to 25% of its NAV (at the time of investment) in companies with shares traded outside of Vietnam if a majority of their
assets and/or operations are based in Vietnam;
up to 20% of its NAV (at the time of investment) in direct private equity investments; and
up to 20% of its NAV (at the time of investment) in other listed investment funds and holding companies which have the
majority of their assets in Vietnam.
As of 30 June 2025, no individual investment exceeded 20% of the net assets attributable to Shareholders (2024: none).
All of the Company’s investments in securities at fair value are in Vietnam as at 30 June 2025 and 30 June 2024. All of the Company’s
investment income can be attributed to Vietnam for the years ended 30 June 2025 and 30 June 2024.
•
•
•
60
Financial Statements Annual Report 2025
5. Share Capital
Notes to the Financial Statements
For the year ended 30 June 2025 (continued)
Ordinary shares of USD 1 each
Pursuant to its redomiciliation to Guernsey, the Company re-registered with an authorised share capital of USD 200,000,000 divided
into 200,000,000 shares of a nominal or par value of USD 1.00 each. In accordance with the Company’s Articles of Incorporation
Amended and restated by special resolution on 21 December 2023, the Company may, from time to time, redeem all or any portion
of the shares held by the Shareholders on annual basis upon giving notice of not less than 30 calendar days.
Holders of ordinary shares are entitled to attend, speak and vote at general meetings of the Company. Each ordinary share
(excluding shares in treasury) earns one vote.
On 8 March 2019 the Company’s ordinary shares were cancelled from trading on AIM and admitted to the Main Market (previously
Premium segment of the Official List) and trading on the Main Market of the London Stock Exchange (“Main Market”). On the same
date the Company’s shares were admitted to listing and trading on the TISE.
The Company operates two distinct share repurchase policies. Under the annual redemption facility, qualifying shareholders may
redeem their shares at NAV, with redeemed shares subsequently cancelled. Separately, the Company also conducts market buybacks
under its Share Buyback Policy. Prior to 21 February 2025, repurchased shares were cancelled however following the policy revision, shares
may be held in treasury without voting or dividend rights.
As part of the introduction of the first annual redemption facility, the final number of ordinary shares validly tendered for redemption
for the year ended 30 June 2025 was 3,411,748 shares.
As at 30 June 2025, 235,104 shares were held in treasury and 246,505 shares repurchased earlier in the year were cancelled.
During the financial year ended 30 June 2025, the Company issued a total of 113,500 ordinary shares. These shares were offered for cash
consideration and allotted in various tranches throughout the year.
Reserve for own shares
Reserve for own shares are the Company’s own shares which had been repurchased. The amount represents share capital which can be
reissued in the future or subsequently cancelled. All reserves are available for distribution subject to a solvency assessment.
During the year ended 30 June 2025 the Company repurchased and cancelled 246,505 ordinary shares (2024: 440,212 ordinary shares)
under the Company’s share buyback programme (representing 0.9% of the ordinary shares outstanding at 1 July 2025).
On 30 September 2024, the Company redeemed and cancelled 3,411,748 Ordinary Shares (2024: Nil), representing approximately 12.57%
of the shares in issue as of 31 August 2024.
27,725,104
-
(440,212)
-
-
27,284,892
27,284,892
Total shares issued and fully paid (after repurchases and cancellations) at beginning of the year
Shares issued during the year
Shares cancellation during the year
Shares held in treasury during the year
Shares redemption during the year
Total outstanding ordinary shares with voting rights
Repurchased and reserved for own shares
At beginning of the year
During the year
Shares held in treasury
Share cancellation
2025
No. of shares
2024
No. of shares
27,284,892
113,500
(246,505)
(235,104)
(3,411,748)
23,505,035
23,505,035
-
(3,893,357)
235,104
3,658,253
-
(440,212)
-
440,212
Annual Report 2025 Financial Statements
61
On 21 February 2025, the Company revised its Share Buyback Policy, authorising that repurchased shares be held in treasury and not
cancelled. Following this amendment, the Company repurchased 235,104 ordinary shares under its approved buyback programme
(2024: Nil). These shares are held in treasury and do not carry voting or dividend rights. As at 30 June 2025, the number of ordinary
shares in issue has been reduced by 235,104 shares due to the buyback (2024: Nil).
As a result, as at 30 June 2025, the Company has 23,505,035 (2024: 27,284,892) ordinary shares with voting rights in issue (excluding
the reserve for own shares), and 235,104 (2024: Nil) are held as reserves for treasury shares.
Capital Management
The Company does not have any externally imposed capital requirements.
The Company’s general intention is to reinvest the capital received on the sale of investments. However, the Board may from time
to time and at its discretion, either use the proceeds of sales of investments to meet the Company’s expenses or distribute them to
Shareholders. Alternatively, the Company may repurchase its own ordinary shares with such proceeds from Shareholders pro rata
to their shareholding upon giving notice of not less than 30 calendar days to Shareholders (subject always to applicable law) or
repurchase ordinary shares at a price not exceeding the last published NAV per share.
Investment management fees
The Company entered into a new investment management agreement with Dynam Capital, Ltd on 26 June 2018. The agreement
was amended and restated on 8 October 2018 and further amended and restated on 1 October 2020. The Board and the Investment
Manager agreed to modify the management fee (previously on a sliding scale of 1.5% per annum on NAV below USD 300 million,
1.25% per annum on NAV between USD 300 – USD 600 million, and 1.0% per annum on NAV above USD 600 million) effectively from
1 November 2020.
Pursuant to the agreement the Investment Manager is entitled to receive a monthly management fee, paid in the manner set out
as below:
Total equity of USD 117,622,802 (2024: USD 140,151,385) represents net assets attributable to Shareholders. NAV per share as at 30
June 2025 is USD 5.004 (2024: USD 5.137).
The management fee accruing to the Investment Manager for the year ended 30 June 2025 was USD 2,189,005 (2024: USD 2,237,255).
An amount of USD 164,372 (2024: USD 203,206) was outstanding as at 30 June 2025.
6. Net Assets Attributable to Shareholders
7. Net (Loss)/Gain from Investments at Fair Value through Profit or Loss
8. Related Party Transactions
18,459,534
(2,011,711)
15,781,434
(4,193,284)
Realised gain on disposal of investments
Realised foreign currency loss
Unrealised (loss)/gain on investments at fair value through profit or loss
Unrealised foreign currency gain/(loss)
2025
USD
2024
USD
17,034,541
(2,341,800)
(15,848,509)
591,481
(564,287) 28,035,973
On the amount of the Net Asset Value of the Company up to but excluding USD 300 million, one-twelfth of 1.75%;
On the amount of the Net Asset Value of the Company between and including USD 300 million up to and including USD 600
million, one-twelfth of 1.5%; and
On the amount of the Net Asset Value of the Company that exceeds USD 600 million, one-twelfth of 1%.
•
•
•
62
Financial Statements Annual Report 2025
8. Related Party Transactions (continued)
9. Custodian Fees
10. Administrative and Accounting Fees
Notes to the Financial Statements
For the year ended 30 June 2025 (continued)
Directors’ fees and expenses
The Board determines the fees payable to each Director, subject to a maximum aggregate amount of USD 350,000 (2024: USD
350,000) per annum being paid to the Board as a whole. The Company also pays reasonable expenses incurred by the Directors in
the conduct of the Company’s business including travel and other expenses. The Company pays for directors and officers liability
insurance coverage.
The charges for the year for the Directors’ fees were USD 253,250 (2024: USD 257,622) and expenses were USD 76,042 (2024: USD
105,215). The total Directors’ fees and expenses for the year were USD 329,292 (2024: USD 362,837).
As at 30 June 2025, USD nil (2024: nil) of Directors’ fees were outstanding.
Ownership of shares
As at 30 June 2025, Directors held 34,964 ordinary shares in the Company (2024: 34,964) as listed below.
Mr Funaki is also a Director of Discover Investment Company which at 30 June 2025 held 1,415,776 ordinary shares in the Company
representing 6.03% of the issued share capital.
Custodian fees are charged at a minimum of USD 12,000 (2024: USD 12,000) per annum and received as a fee at 0.08% on the
assets under administration (“AUA”) per annum. Custodian fees comprise safekeeping fees, transaction fees, money transfer fees
and other fees. Safekeeping of unlisted securities up to 20 securities is charged at USD 12,000 (2024: USD 12,000) per annum.
Transaction fees, money transfers fees and other fees are charged on a transaction basis.
The charges for the year for the Custodian fees were USD 119,014 (2024: USD 127,617), of which USD 10,500 (2024: USD 11,780) were
outstanding at year end.
In accordance with the new Administration Agreement between the Company and Apex Fund and Corporate Services (Guernsey)
Limited (the “Administrator”) dated 7 October 2019, the Administrator is entitled to receive a fee of 0.08% per annum of NAV up
to USD 100,000,000, 0.07% of NAV thereafter subject to a minimum fee of USD 140,000 per annum. The administration fees are
accrued monthly and are payable quarterly in advance. The charges for the year for Administration fees were USD 158,306 (2024:
USD 150,580), of which USD 500 (2024: USD 500) were outstanding at year end.
The Sub-Administrator receives a fee as consideration for the services provided to the Company at such rates as may be agreed in
writing from time to time between the Company and the Sub-Administrator. The charges for the year for Administration fees were
USD 63,152 (2024: USD 63,638), of which USD 5,002 (2024: USD 5,384) were outstanding at year end.
Total administrative and accounting fees for the year were USD 221,457 (2024: USD 214,218).
Hiroshi Funaki
Philip Scales
Saiko Tajima
19,887
10,077
5,000
Shares
Shares
Shares
Annual Report 2025 Financial Statements
63
11. Other Operating expenses
12. Controlling Party
13. Fair Value Information
The Directors are not aware of any ultimate controlling party as at 30 June 2025 or 30 June 2024.
The table below analyses financial instruments measured at fair value at the reporting date by the level in the fair value hierarchy
into which the fair value measurement is categorised. The amounts are based on the values recognised in the Statement of
Financial Position. All fair value measurements below are recurring.
For certain of the Company’s financial instruments not carried at fair value, such as cash and cash equivalents, accrued dividends,
other receivables, receivables/payable upon sales/purchase of investments and accrued expenses, the amounts approximate fair
value due to the immediate or short-term nature of these financial instruments.
Other financial instruments are measured at fair value through profit or loss.
Fair value estimates are made at a specific point in time, based on market conditions and information about the financial
instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgement and therefore,
cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
30,943
381,590
136,640
8,037
597,150
Technical assistance for investee companies
Brokerage fees
General expenses
Insurance cost
Publicity and investor relations fees
2025
USD
2024
USD
37,416
284,151
152,181
8,037
341,530
823,315 1,154,360
Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments. This level includes listed equity
securities on exchanges (for example, Ho Chi Minh Stock Exchange).
Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e., as prices) or indirectly (i.e.,
derived from prices). This level includes instruments valued using: quoted prices for identical or similar instruments in markets that are
considered less than active; quoted market prices in active markets for similar instruments; or other valuation techniques in which all
significant inputs are directly or indirectly observable from market data.
Level 3: Inputs that are not based on observable market data (i.e., unobservable inputs). This level includes all instruments for which
the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the
instrument’s valuation.
•
•
•
2025
Financial assets classified at fair value upon initial recognition
Investments in securities
2024
Financial assets classified at fair value upon initial recognition
Investments in securities
113,668,414
134,971,131
-
-
-
-
113,668,414
134,971,131
Total
USD
Level 1
USD
Level 2
USD
Level 3
USD
64
Financial Statements Annual Report 2025
13. Fair Value Information (continued)
14. Classifications of Financial Assets and Liabilities
15. Earnings Per Share
16. New and Amended Standards and Interpretations
Notes to the Financial Statements
For the year ended 30 June 2025 (continued)
There were no transfers between levels during the year.
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined based on
the lowest level input that is significant to the fair value measurement in its entirety. Assessing whether an input is significant
requires judgement including consideration of factors specific to the asset or liability. Moreover, if a fair value measurement uses
observable inputs that require significant adjustment based on unobservable inputs, that fair value measurement is a Level 3
measurement.
There are no level 3 assets held at 30 June 2025 (2024: nil).
The table below provides a breakdown of the line items in the Company’s Statement of Financial Position to the categories of
financial instruments.
The calculation of basic and diluted earnings per share at 30 June 2025 was based on the total comprehensive loss for the year
attributable to Shareholders loss of USD 2,850,696 (2024: USD 26,522,608) and the weighted average number of shares outstanding
of 24,799,146 (2024: 27,383,130).
(i) Standards and amendments to existing standards effective 1 July 2024
The Board of Directors has assessed the impact, or potential impact, of all new standards and amendments to existing standards.
In the opinion of the Board of Directors, there are no mandatory new standards and amendments applicable in the current year
that had any material effect on the reported performance, financial position, or disclosures of the Company.
2024
Cash and cash equivalents
Investment in securities at fair value
Accrued dividends and interest
Receivables on sale of investments
Accrued expenses
2,894,425
-
73,797
2,451,845
-
-
-
-
-
134,971,131
-
-
- - 239,813
5,420,067 -134,971,131
239,813--
2,894,425
134,971,131
73,797
2,451,845
239,813
140,391,198
239,813
2025
Cash and cash equivalents
Investment in securities at fair value
Accrued dividends and interest
Receivables on sale of investments
Payables on purchase of investments
Accrued expenses
-
113,668,414
-
-
4,524,725
-
71,944
175,246
4,524,725
113,668,414
71,944
175,246
-
-
-
-
113,668,414 4,771,915
-
-
596,605
220,922
-
-
--
118,440,329
596,605
220,922
817,527
-
817,527
Total carrying
Amount
USD
Financial liabilities
at amortised cost
USD
Financial assets at
amortised cost
USD
Fair value through
Profit or loss
USD
Annual Report 2025 Financial Statements
65
(ii) Standards effective after 30 June 2025 that have not been early adopted by the Company
IFRS 18 – Presentation and Disclosure in Financial Statements
The Company has reviewed the implications of IFRS 18, issued by the IASB, which will replace IAS 1 Presentation of Financial
Statements. IFRS 18 introduces comprehensive requirements for the classification and presentation of income and expenses in the
income statement, as well as enhanced disclosure obligations for performance measures defined by management. The standard
is effective for annual reporting periods beginning on or after 1 January 2027, subject to endorsement in the UK. Management
anticipates that the adoption of IFRS 18 will primarily affect the presentation format of the income statement and require
additional disclosures of management-defined performance measures but does not expect a material impact on the recognition
or measurement of financial results.
Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7
The Company has considered the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS
7, specifically the clarifications related to the settlement of financial assets and liabilities via electronic payments. These
amendments, which are effective for annual periods beginning on or after 1 January 2026, clarify certain electronic cash settlement
arrangements may still meet the criteria for derecognition under IFRS 9. Management has assessed that these amendments will
not have a significant impact on the Company’s financial statements, as current settlement practices already align with the
clarified derecognition criteria.
On 2 September 2025, the Company announced that the second annual redemption facility had resulted in 4,198,773 Ordinary
Shares being validly tendered for redemption. These ordinary shares represent approximately 17.9% of the ordinary shares in issue
as at 31 August 2025. The Board resolved that the redemption price will be based on the Company’s official net asset value
per share as at 30 September 2025. The net asset value per share is expected to be announced by mid-October 2025 and it is
anticipated that payments will be made to redeeming shareholders by the end of October 2025.
From 1 July 2025 to the date of signing these financial statements, there were no other material events that require disclosures and/
or adjustments in these financial statements.
17. Events After the Reporting Date
66
Financial Statements Annual Report 2025
Total annual expenses
Less: non-recurring expenses
Operating expenses
USD
Page
a
b
b=c+d
49
1
1
3,871,552
(58,393)
3,813,159
Discount or Premium
The amount, expressed as a percentage, by which the ordinary share price is either higher (premium) or lower (discount) than the NAV per
ordinary share.
Ongoing charges
Ongoing charges have been calculated in accordance with the Association of Investment Companies (the “AIC”) recommended methodology
by taking the regularly incurred annual operating expenses of running the Company expressed as a percentage of average NAV.
The ongoing charges for the year ended 30 June 2025 were 3.04%.
a) Average NAV
Calculated using twelve monthly closing average NAV for the year ended 30 June 2025.
b) Operating expenses
Total annual expenses incurred by the Company less the cost of project and one-off expenses i.e. non-recurring expenses.
Alternative Performance Measures (“APMs”)
NAV per ordinary share (pence)
Ordinary share price (pence)
Discount
30 June 2025
Page
a
b
((b-a)/a)
1
1
1
365.2
338.0
7.4%
Average NAV
Operating expenses
Ongoing charges
30 June 2025
USD
Page
a
b
b-a
1
1
1
125,427,7 17
3,813,159
3.04%
Annual Report 2025 Financial Statements
67
Corporate Information
Mr. Hiroshi Funaki
Mr. Philip Scales
Ms. Saiko Tajima
Ms. Connie Hoang Mi Vu
Directors
Stephenson Harwood LLP
1 Finsbury Circus
London
EC2M 7SH
UK Legal Adviser
Apex Fund and Corporate Services (Guernsey) Limited
1 Royal Plaza
Royal Avenue
St Peter Port
Guernsey
GY1 2HL
Registered Office, Company Secretary and Administrator
Dynam Consultancy and Services Company Limited
Floor 12, Deutsches Haus,
33 Le Duan,
Ben Nghe Ward, District 1
Ho Chi Minh City,
Vietnam
Market Researcher
Dynam Capital, Ltd
1 Royal Plaza
Royal Avenue
St Peter Port
Guernsey
GY1 2HL
Investment Manager
Carey Olsen (Guernsey) LLP
Carey House
Les Banques
St Peter Port
Guernsey
GY1 4BZ
Guernsey Legal Adviser
Standard Chartered Bank (Singapore) Limited
7 Changi Business Park Crescent
Level 3, Securities Services
Singapore 486028
Sub-Administrator, Custodian and Principal Bankers
Cavendish Securities plc
One Bartholomew Close
London
EC1A 7BL
Corporate Broker and Financial Adviser
KPMG Channel Islands Limited
Glategny Court
Glategny Esplanade
St Peter Port
Guernsey
GY1 1WR
Auditor
Computershare Investor Services (Guernsey) Limited
1st Floor, Tudor House
Le Bordage
St Peter Port
Guernsey
GY1 1DB
Registrar
Annual Report 2025 Financial Statements
68
