1) Vietnam enjoys several secular macroeconomic tailwinds
Vietnam is a ‘young’ country, with median population age of 33.6 years and an employment to population ratio of 73% (compared to the global average of 58%). Vietnam has been attracting significant foreign direct investment (FDI) inflows, predominantly in manufacturing as global giants are diversifying their supply chains. For years, Vietnam follows an open trade policy, tightening its relationships around the globe, and was one of the first countries to agree a deal with the US amid global trade tensions of 2025. Manufacturing for exports developed rapidly and currently trade represents twice Vietnam’s GDP. Strong economic growth, paired with favourable demographics, translates into a rapidly growing middle class and domestic spending.
2) VNH invests in high-conviction stocks in a dynamic market
VNH seeks out small and medium companies that have the potential to double their earnings in four to five years, as well as best-in-class blue chips. It invests solely in companies meeting their strict criteria regarding ESG practices, in particular with respect to disclosures and market communication. This creates a relatively narrow investable universe of 60–80 stocks (out of c 400 quoted on the Ho Chi Minh City Stock Exchange), of which VNH selects between 25–30 to actively trade in, with its portfolio turnover at around 30–40% in any given year. This translates to a high active share against Vietnam’s All-share index (normally around 75%).
3) VNH is committed to improving environmental, social and corporate governance (ESG) aspects
ESG criteria are at the forefront of VNH’s investment strategy. Despite investing in minority stakes, VNH has an active approach to helping its portfolio companies improve their ESG credentials. VNH’s and Dynam Capital’s representatives regularly advise portfolio companies and participate in many related conferences and events. VNH has been a signatory of the United Nations Principles for Responsible Investing since 2009. The CIO of Dynam Capital is co-founder of the Vietnam Institute of Directors. Finally, the ESG profile of VNH’s portfolio is periodically evaluated by an independent advisor.
4) VNH’s manager focuses on Vietnam’s industrialisation, urbanisation and rise in domestic consumption
The strong FDIs in Vietnam’s manufacturing sector has driven the country’s industrialisation and the development of a large ecosystem of supporting businesses such as industrial parks and logistic companies. Growing urbanisation creates additional demand (and in turn investment opportunities) across a broad variety of sectors, including housing, transportation and convenience stores. VNH benefits from this trend primarily through investments in real estate developers and banks. Finally, VNH’s strategy is to seize opportunities arising from the growth in disposable income of Vietnam’s population and the associated increase in sales of retail chains. Vietnam has also seized the growth to support education, which resulted in increasing number of arising tech companies. A prime example of this is VNH’s investee company FPT – a software services company with global footprint.
5) VNH is nimble, focused and performing well
VNH significantly outperformed Vietnam’s equity markets in each calendar year in the period 2020–2024, highlighting the investment manager’s stock picking expertise, as the fund’s nimble size allows it to be dynamic within the investment environment. It also allows the fund to have an annual unconditional share redemption facility where investors may tender their shares at NAV.
Published 28 August 2025
