Vietnam’s GDP growth slowed to 3.3% during Q1. The country’s exports have recorded weak numbers since autumn, alike other Asian exporting countries, but the weakness of exports is not the key reason for the slowdown in Vietnam’s GDP growth. In late autumn, the actions of the authorities dried up the liquidity and shot interest rates up, creating uncertainty in the domestic economy, and as a result, consumers postponed their planned purchases. During the first quarter of the year, domestic consumption has most probably touched already the bottom.
In the remaining 2023 GDP growth is set to accelerate, as the interest rates are clearly trending down. No indication to keep the interest rates high, as there is no need to fight inflation when consumer prices have been kept relatively stable. The Vietnamese government’s target for GDP growth is at 6.5% this year. PYN Elite’s GDP growth expectation is slightly more moderate at 5.5%.
Stocks are attractively priced in the Vietnamese market, and it remains to be seen when the country’s improved liquidity conditions and lower interest rates environment will encourage investors to return with large numbers to the buy-side. Vietnam’s government has taken effective measures to accelerate economic growth. The speed of decision-making has surprised many investors, even though the stock market is still consolidating without a clear upturn. The NAV of PYN Elite has been crawling up and is now +6% YTD.
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.