Freetrade currently has two Vietnam based ETF’s on the platform - Vietnam Enterprise and Vietnam Opportunity. I guess they’re technically holding companies but I’m calling them ETF’s for the purpose they hold slices of multiple companies within them.
I believe before buying any company you have to be able to understand the business, and so in my quest to understand I’ll throw it over to you guys. Has anyone had any experience investing in either of these stocks? I’ve rarely seen any discussion about them in this community and wanted to get people’s feedback as both have currently dipped and this could be a buying opportunity.
For reference, I’m currently looking at Vietnam Opportunity for £3.19.
I’ve just tried to access the key information document for Vietnam Enterprise, sadly the URL link within FT’s app points to a link which no longer exists.
I currently hold VOF, and am long Vietnam in general after visiting Saigon (HCMC) for a month last year.
To my mind both VOF and VEIL holding’s look quite similar. I went with VOF because they owned Vietjet at the time and their website had better reports and analysis from the managers (and a video!).
Both are holding companies that I think should do well if Vietnam’s population carries on getting richer and buying and building more stuff.
I don’t know so much about the bigger picture macro stuff like how Vietnam’s international trade is doing. When talking to people in HCMC lots seem to be founding start-ups. So my opinion is based on that and seeing the number of shopping centres being built.
I looked into investing in Vietnam last year, seeing them as a beneficiary of the US/China trade war. But I could not find a good vehicle in which to do it. Their economy is growing strongly, but that is not reflected in their stock market performance.
Things looking up for the 2 trusts I hold.
The market always takes a kicking every time they have a corruption purge.
Looks like purge has come to an end and it is being reflected in the NAV/share prices of my two trusts. VOF and VEIL.
This is considered a given IE the stockmarket and the economy are separate entities.
Personally I consider that an exaggeration.
I prefer there can be a considerable time lag between the two. Very considerable
@Lawrence
VOF VEIL and ? are investment trusts and definitely not ETFs.
I think (check) there are at least two Vietnam ETFs. They maybe available on freetrade.
As an aside they both own unlisted companies as well as listed (VOF & VEIL)
Also VOF pays a small dividend out of capital.
"The Vietnamese economy is one of the most dynamic in the world. It turned in growth of just under 7.1% last year, way ahead of the previous year’s 5.5%. The government’s official growth target for this year is 6.5-7%, but its ambition is for output to rise a full 8%.
Unlike many of its communist counterparts, the government has an investment-led, pro-business growth agenda which has been in place for the past 20 years. Reforms are underway to overhaul its stock market and make it more attractive to international investors, too, as the country prepares for its anticipated upgrade by FTSE later this year from a frontier to an emerging market. "
From:
NOTE a move into the emerging markets sector will require buying by emerging markets ETFs. So an obvious fillip for stockmarket valuations
I hold VOF as it has a relatively large holdings in private companies. The market for private companies has been subdued for sometime, so i expect a rapid increase in NAV once that happens. In the mean time it has a small variable dividend.
Opps sold VOF on Monday 7th April.
Alas spent all the money. Will need to start buying and building up from scratch. Pity fall was quite precipitous on the Wednesday. Still below Mondays selling price.
26% discount based on yesterday price. Up 6.5% today.
COULD be a bargain.
