VietNam Holding is an investment company with a concentrated, high-conviction portfolio of Vietnamese equities. Launched in 2006, its shares are listed on the London Stock Exchange under the ticker VNH, and the portfolio has been managed by Dynam Capital since 2018.
1. Vietnam enjoys several secular macroeconomic tailwinds.
VNH’s manager focuses on Vietnam’s industrialisation, urbanisation and rising domestic consumption. Vietnam is a ‘young’ country, with a median age of 32.5 years and an employment-to-population ratio of around 72% (compared to around 61% in China and 54% in the EU). Vietnam has been attracting significant foreign direct investment (FDI) inflows, predominantly in manufacturing as global giants diversify their supply chains. FDI has supported the development of a large ecosystem of supporting businesses such as industrial parks and logistics companies. Vietnam has long pursued an open trade policy and has deepened its international trade relationships. Export manufacturing has developed rapidly and trade now represents almost twice Vietnam’s GDP. We note the Vietnamese government’s pro-growth, market-oriented agenda aimed at streamlining the government, boosting capabilities of the private sector, pursuing ambitious tech sector targets and fostering aggressive infrastructure roll-out. Strong economic momentum, with real GDP growing by 8.0% in 2025 and around 8.2% in the first half of 2026, combined with favourable demographics, translates into a rapidly growing middle class and rising domestic spending. Growing urbanisation creates additional demand (and, in turn, investment opportunities) across a broad range of sectors, including housing, transportation and convenience stores.
2. Vietnam’s stock market may benefit from higher participation of foreign investors.
Vietnam’s story is a combination of strong economic growth driven by secular themes and a stock market that is not well penetrated by foreign capital. Foreign investor participation is likely to increase in the coming years following Vietnam’s confirmed reclassification by FTSE Russell from Frontier to Secondary Emerging Market status, effective 21 September 2026, with the potential for a similar upgrade by MSCI a few years later. The Vietnamese government aims to facilitate the MSCI upgrade by 2030, although some market participants consider an earlier inclusion possible.
3. VNH invests in high-conviction stocks in a dynamic market.
VNH pursues an all-cap, high-conviction, valuation-aware strategy, seeking out companies that have the potential to double their earnings in four to five years. It invests solely in companies meeting its financial and ESG criteria, in particular with respect to disclosures and market communication. This creates a relatively narrow investable universe of 60–80 stocks, from which the manager constructs a concentrated portfolio of around 25 holdings, with its portfolio turnover at around 30–40% in any given year. The resulting portfolio differs meaningfully from the Vietnam All-Share Index and may therefore perform quite differently from the benchmark. The company’s nimble size allows it to be dynamic within the investment environment, although it also results in a relatively high ongoing charges ratio. The robust liquidity of the underlying portfolio allows the company to have an annual unconditional share redemption facility where investors may tender up to 100% of their shares at NAV, alongside regular share buybacks.
4. VNH is committed to improving environmental, social and governance 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. Dynam Capital regularly engages with portfolio companies and participates in many related conferences and events. VNH has been a signatory to the UN-supported Principles for Responsible Investment since 2009 and received five-star scores across all modules covered by its 2025 PRI Transparency Report. The manager aims to maintain the portfolio’s carbon footprint at least 20% below the Vietnam All-Share Index. Dynam Capital’s CIO is a founding member and former chair of the Vietnam Institute of Directors.
Published 17 August 2026
