VietNam Holdings $1.29 (VNH.L – London and VNMHF in the USA)
Why you might care:
VietNam stock market trades at a low P/E ratio of 12.5 – The fund itself trades at 9.5 P/E to trailing earnings.
VNMHF trades at a 28% discount to asset value (NAV $1.666 and market price of $1.20)
VNMHF Performance in trailing twelve months was up 41%
VietNam has the 13 largest population in the world. Surprised? I was.
VietNam is an Energy independent country
In the latest “Doing Business Survey” of World Bank, Vietnam was ranked 99th out of 189 countries covered, ahead of the Philippines, Indonesia and India, and only 3 places behind China.
GDP growth rate in 2012-13 was about 5.4% Vietnam is a developing economy in the Southeast Asia. In recent years, the nation has been rising as a leading agricultural exporter and an attractive foreign investment destination. Vietnam’s key products are: rice, cashew nuts, black pepper, coffee, tea, fishery products and rubber. Manufacturing, information technology and high-tech industries constitute a fast growing part of the economy. Vietnam is also one of the largest oil producers in the region.
In my opinion, VNMHF or VNH.L is the best vehicle for a foreigner to own shares in Vietnam equities. It is not for trading, it is far too illiquid. A good strategy would be to dollar cost average purchases over time just as you would with any mutual fund. This might be a consideration to open an account in London Stock exchange using eTrade if you are interested in holding assets in a currency other than the US dollar. Vietnam Holdings trades much more actively in London than here on the US pink sheets.
I will be in VN for two and a half months, returning in early February, 2014. I welcome any and all of you to visit me in Hanoi, if not now at a future date. This is my 12th or 13th trip to VN since 2007. My time in SE Asia is lengthening with each trip. Besides Vietnam, I really enjoy Malaysia which has some of the finest medical facilities in the world. Eight percent of British citizens travel to Malaysia for medical treatment, a fact I find interesting. This trip I will explore Myanmar, Laos and Cambodia.
As most of you know, I am also the Business Development Director for a tour company, www.SistersToursVN.com . In addition, I am involved with a large number of the artists through my www.ArtistsofVietnam.com endeavors. Requests to represent product as a trade representation are increasing from both sides of the ocean. I am not sure where all this is leading but it is a fun adventure. Rest assured my progress in all of the above is dependent on my creating money from the stock market so my attention to equities will not wander. It is gratifying to see SMSI react (yesterday) to its developments. As you know everything takes money.
In my Vietnam adventure, I have found great team partners in art and travel that I consider family. The ripples from these relationships are expanding. The close and trusting personal and business relationships I have built, allows me the opportunity to participate in my three focus areas; Investing, Art and Travel.
Opportunities abound when an economy expands.
Have a great day! Tom