VN Index rose 11.9% in August, while PYN Elite outperformed slightly at +12.3%, despite a 2.6% gain of the Euro against the VND. The index was led by banks (+20%) and brokers (+19%), both of which are heavily weighted in the fund’s portfolio. August was another strong month for banks, following a 13% rise in July—marking the sector’s best month in 2025. Investors turned bullish as 2Q results show clear improvement in asset quality and solid borrowing pipeline – signalling the start of a multi-year credit upcycle along with strong GDP growth. The fund also gained from blue-chip retailer MWG, which posted solid 2Q results and announced plans to IPO its ICT & CE retail arm, Mobile World (MW).
Macro: PMI came weakish but remained expansionary at 50.4 in August. In celebration of Vietnam’s 80th Independence Day, the government launched a large-scale infrastructure and housing plan aimed at upgrading strategic infrastructure and reducing reliance on exports. The plan includes 250 projects with a total investment of USD 48 billion—equivalent to 10% of GDP. The government will contribute 37% of the funding, while private and foreign investors will finance the remaining 63%. Key projects include the Rach Mieu 2 Bridge in the Mekong Delta, the Marina International Financial Center in HCMC, Viettel Group’s R&D Center focused on semiconductors and AI, and the new Long Thanh Airport.
Stock of the month – STB
STB began the year as one of the top three performing banks, fuelled by expectations around the VAMC-stake auction and potential ownership changes. However, over the past two months, its share price has been consolidating and the outperformance gap with peers has narrowed, as investors await tangible restructuring process. Recently, STB shared two key developments: (1) it fully received VND 6.3 trillion proceeds from the collateral sale of Phong Phu industrial park in August, well ahead of the original schedule; and (2) SBV approval for the stake sale is expected soon. While its trailing P/B is in line with peers, the expected equity boost would make its 2027E valuation look highly attractive.