VietNam Holding Ltd (LSE:VNH) recovered last month as it said it expects fallout from the Russian invasion to bring risks and opportunities.
The fund, which invests in Vietnamese companies, finished February up 3.8% to record a flat year-to-date net asset value per share, reflective of a strengthening national economy with PMI of 54.3 and import growth of 22.4% against February 2021.
The biggest drivers of recovery were in bank holdings like MBB and VTP following assumed underperformance last year, and logistics companies as sea cargo demand grew and investors anticipate continued supply chain shortages this year.
VietNam Holding said company fundamentals had become a key focus again, and given Russia accounts for around 1% of Vietnam’s total trade, it didn’t expect to be directly impacted by the crisis.
“Instead, we see global inflationary pressures stemming from the conflict as the main risk in Vietnam going forward and domestic money flow already becoming less easy-going as a result of the current environment,” management said in an update.
VietNam Holding predicted the fallout of war to include higher energy costs pushing up inflation, falling tourism as fewer Russian and Ukrainian travelers plan visits, and wider impacts on all sectors from geo-political risks.
Shares in VietNam Holding were down 0.9% on opening in London this morning at 323.06p.