VinaCapital Vietnam total return improves but still trails benchmark

VinaCapital Vietnam Opportunity Fund Ltd on Monday reported a recovery in net asset value, but significantly underperformed its benchmark, which benefitted from a share price surge for one stock.

The Guernsey, Channel Islands-domiciled investment company, which invests in listed and private Vietnamese businesses, said net asset value per share at June 30 was USD7.73, up 8.4% from USD7.13 a year earlier.

Shares in VinaCapital were up 0.2% at 424.58 pence each in London on Monday morning.

NAV total return for the year ended June 30 was 11%, swinging from negative 2.2% a year earlier. Nonetheless, this lagged the VN Index, which returned 37%.

The company described its NAV performance as "respectable" and close to its long-term annualised return record, but acknowledged that it was "significantly behind the VN Index benchmark".

VinaCapital said the VN Index's performance was "driven by extreme share price movements among Vingroup companies". Vingroup JSC's share price rose by more than 350% over the period, and its "ecosystem now accounts for one-third of the VN Index's market capitalisation", VinaCapital said.

VinaCapital said: "During the year we did not invest in [Vingroup] as we were concerned about disproportionately high valuations compared to the overall stock market, whilst the company was significantly leveraged to its fledgling electric vehicle business.

"This decision affected the fund's relative performance."

However, VinaCapital said it "initiated a position post-year end".

VinaCapital maintained its dividend at 7.25 US cents per share.

The company highlighted the Vietnamese government's "ambitious" objective of achieving average gross domestic product growth of 10% annually over the medium term. Vietnam's GDP grew by 8.0% in 2025.

Despite economic headwinds associated with the US-Iran conflict, Vietnam benefited from "exceptional growth in high-tech manufacturing, resilient foreign direct investment, and high public infrastructure investment, while domestic consumption is proving resilient", VinaCapital said.

Looking ahead, Chair Kathryn Matthews said: "Vietnam remains an attractive place to invest." She noted that geopolitical uncertainty could make the government's target of 10% annual growth more challenging.

"Strong economic growth and very attractive valuations should support a broader stock market recovery and provide the team with exciting investment opportunities in 2027. The board will continue to monitor performance closely as the investment manager seeks to take advantage of these opportunities for the benefit of VOF shareholders and will remain focused on maximising value for all shareholders," she added.

Copyright 2026 Alliance News Ltd. All Rights Reserved.