In December, VN-Index down -3.9% and PYN Elite up +1.1%. Foreign investors continued to net buy 540 million USD, focusing on HPG, STB and VHM. HOSE’s average trading liquidity improved to about 600 million USD. VN-Index had a volatile year, crossed 1500 points, dropped to about 900 then ended the year at 1007. Real estate and banking stocks were among the top laggers – causing VN-Index -32.8% the full year, but PYN Elite managed to outperform the index at -28.3%. Vietnam Dong lost 3.5% of its value to USD in 2022.
2022 macro data: Vietnam’s GDP grew 8%, the fastest since 1997. The services sector was the key drive, expanding 10% YoY, followed by manufacturing and construction +7.8%. The growth rate of some major industrial production, compared to last year: Phone accessories +15.1%, Automobile + 14.9%, Leather footwear +8.8%. Implemented FDI capital reached 22.4 billion USD (+13.5% YoY). Lego, Foxconn, Samsung, all had plans to expand or open businesses in Vietnam. Despite slower export activities in late 2022, trade surplus was at 11.2 billion USD. US and China continue to be our largest exporters and importers, respectively.
PYN Elite stock of the month: ACV
ACV is the biggest airport operator in Vietnam. The company made a remarkable comeback from Covid-19 – serving over 99 million passengers last year. 2022 estimated revenue nearly tripled from 2021. Domestic market has now fully recovered and China reopening will boost international arrivals. ACV cautiously estimates to serve 116 million passengers in 2023. Now ACV is building a new airport, Long Thanh, 40 km from HCMC, and also expanding multiple existing airports to add about 50 million passengers annually to current capacity.
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.
PYN Elite Monthly Review.pdf