Slowly, but to right direction

Vietnam’s stock market index is still struggling around the thousand points level. Daily events take the index up and down in very short cycles. In Vietnam, the slowdown in economic growth is over and the acceleration is gradually gaining a foothold, but local investors are still cautious and have not turned bullish yet on the stock market.

Vietnam’s exports will record a -5% contraction for 2023, even though the autumn months have turned for positive growth. We hear from the banks that the financing demand of manufacturing companies has been picking up, which indicates increasing order books. Retail and services will record very sluggish readings for 2023, but the already sharply lower interest rates and the good liquidity of the banks will certainly start to reflect in the growth of consumption from the end of the year and especially in 2024.

While the VN-Index struggles, we have tried to reallocate our portfolio, so we could take full advantage when the stock market picks up later. Banks’ NPL provisions will increase during 2023, but the level of non-performing loans in Vietnam remains very low. The banks’ results remain good, and the short-term economic downturn does not threaten their outlook or solvency.

Important information regarding the text and the Fund

The attached publication is marketing material and should not be regarded as a recommendation to subscribe or redeem units of the PYN Elite Fund. Before subscribing please familiarize yourself with the Key Information Document, the Prospectus and the Rules of the Fund. The material presented in this text is based on PYN Fund Management’s view of markets and investment opportunities. PYN Elite Fund (non-UCITS) invests its assets in a highly allocated manner in frontier markets and in a small number of companies. This investment approach involves a larger risk of volatility compared to ordinary broadly diversified equity investments. The value of an investment may decline substantially in unfavorable market conditions or due to an individual unsuccessful investment. It is entirely possible that the estimates of economic development or a company’s business performance presented in this presentation will not be realized as presented and they involve material uncertainties.


7th May 2024

We have become aware in recent weeks of an ongoing fraud in Vietnam. This fraud involves the illegal use of the names ‘PYN’ or ‘PYN Elite,’ or variations thereof, in attempts to scam money from individuals through false or fake companies, mobile apps, websites, or social media.