LONDON - Vietnam's economy demonstrated continued resilience in November 2024, with a substantial trade surplus and growth in exports and imports, according to a report by Dynam Capital Limited, the investment manager for VietNam Holding Limited (VNH). The country recorded a trade surplus of USD 24.3 billion for the first 11 months of 2024, with exports and imports growing by 14.4% and 16.4% year-on-year, respectively.
Exports, particularly in computers, electronics, phones, machinery, and textiles, have seen significant growth, bolstered by strong performances across major markets such as China, the US, Korea, Japan, and the EU. Public investment in Vietnam also experienced an upturn, with 73.5% of the annual target disbursed by November, totaling USD 22.9 billion, a 2.4% increase from the previous year.
Despite the positive figures, the retail sector's growth pace remains slower than pre-Covid levels, although sectors like hospitality, food services, and tourism have contributed to healthy retail sales throughout 2024.
The Vietnamese government has approved a USD 67 billion high-speed railway project, which is expected to enhance connectivity between Hanoi and Ho Chi Minh City, significantly impacting economic growth and environmental sustainability.
While VNH's Net Asset Value (NAV) per share declined by 2.4% in November and underperformed the VNASTR index, the company was recognized with an award for Best Emerging Markets Trust by UK Investor Magazine.
The amended Securities Law, approved by Vietnam's National Assembly on November 29, marks a significant milestone for the country's stock market. It introduces provisions aimed at strengthening the responsibilities of issuers, advisory units, and auditors, which are expected to improve transparency and regulatory monitoring, thereby bolstering investor confidence and setting the stage for Vietnam to achieve emerging market status between 2025 and 2026.
Looking ahead, Vietnam's economy is projected to grow between 6-8% in 2025, with the World Bank forecasting a 6.5% GDP increase and the International Monetary Fund expecting a 6.1% rise. These projections are supported by strong external demand and sustained foreign direct investment, despite global economic uncertainties and shifting trade policies.
VNH's portfolio, focusing on domestic consumption, urbanization, and industrialization, with top holdings in banking, retail, and telecommunications, is strategically positioned for the upcoming year. This report is based on a press release statement issued by Dynam Capital Limited.
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