PYN Elite up 5.2% in June

In June, PYN Elite outperformed the VN-Index at +5.2%. The VN-Index rose by +3.3%, driven by the banking sector. The National Assembly officially passed the amended Law on Credit Institution to significantly improve banks’ capacity to manage distressed assets, enhance liquidity and speed up the collateral recovery income in the future.

The parliament also approved vital mechanisms for private sector involvement in mega-scale infrastructure projects. This opens the door for a different funding approach other than full reliance on the State. With this new funding model, the North-South High-Speed Railway project is expected to start construction by December 2026.

Macro: Vietnam’s economy demonstrated robust growth in Q2, with GDP expanding by an estimated +7.6% YoY, pushing first-half growth to +7.3% YoY. The tourism sector flourished, welcoming 9.2 million international visitors in the first five months (+21.3% YoY). It remains on track to achieve the full-year target of 22 million. The Vietnam Manufacturing PMI fell to 48.9 in June (vs. 49.8 in May) mainly due to concerns over U.S tariffs. 

The U.S and Vietnam have finalized a new trade agreement: Vietnamese imports to the US will be subject to a 20% tariff, rising to 40% for goods identified as transshipped. The criteria for identifying and enforcing the transshipment tariff remain undefined. U.S exports to Vietnam will enter duty-free.

PYN Elite stock of the month: HVN (Vietnam Airlines)

Vietnam Airlines (HVN) is the national flag carrier of Vietnam. For 2025, HVN has set a target of over 25 million passengers and a revenue target of $4.5bn. Despite passenger numbers not yet exceeding 2019 levels due to the streamlining of its low-cost subsidiary, the airline is on track to achieve record revenue and core profit margins.
A moderate capital raising is scheduled for Q3 2025, which is expected to turn the company’s owner’s equity from negative to positive. This influx of capital will enable HVN to settle overdue debts and prepare for a significant operational presence at the new HCMC airport starting in 2027.

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.

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