June passed with numerous events. The reduction of value-added tax (VAT) by 2 percentage points, a 50% lower car registration fee and a new 90-day visa policy were passed to boost the service and manufacturing sectors. The National Assembly also discussed amendments to Housing law, Real estate trading law, and Credit institutions law to support businesses.
The State Bank of Vietnam (SBV) made the fourth round of rate cuts, bringing the refinancing rate to 4.5% and the discount rate to 3%. This led to a slightly weaker VND against EUR and USD.
VN-Index gained +4.2% in June, setting the highest YTD peak. PYN Elite +2.4%, driven by banks. Cash flowing from bank deposits to stocks pushed the average daily trading value to over $714 million.
Macro: Vietnam’s GDP +4.1% YoY in Q2, lifting first-half growth to 3.7%. The service sector continued to grow +6.1% YoY, while the industrial and construction was slower, at +2.5% YoY. Exports increased by 4.5% and imports by 2.6% in June compared to May, but still showed negative growth YoY. As of six months, the trade surplus of goods at $12.3 billion.
June CPI down to 2% YoY. Inflation stayed well intact.
PYN Elite Stock of the Month: SCS
Saigon Cargo Service Corporation (SCSC) operates a cargo terminal at Saigon international airport (Tan Son Nhat). SCS has always managed to deliver an impressive net margin, even during the Covid times. The company has announced a capacity upgrade to 350,000 tons, meeting export and import demand. With strategic shareholders ACV (Airports Corporation of Vietnam) and Gemadept (Logistics Pioneer), SCS is a strong candidate for another cargo terminal at the next Saigon international airport (Long Thanh) – due to finish by 2026-2027.
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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