Vietnam Enterprise Investments (VEIL)

Vietnam Enterprise Investments (VEIL) has delivered strong performance in 2025 as the Vietnamese stock market has rallied despite significant volatility around US tariff announcements (see Performance). Manager Tuan Le has positioned the portfolio to benefit from domestic growth drivers, and these have been delivering excellent earnings reports for Vietnamese companies, which have exceeded his already high forecasts entering the year.

Since the start of June, VEIL’s NAV is up 27%, and the share price over 30%, with the portfolio’s areas of high conviction coming good. Tuan Le expects this momentum to continue into next year and beyond, with strong government support for growth via infrastructure investment and regulatory reform, which are designed to boost the private sector. He has positioned the portfolio in banks, real estate, and consumption-related names, all of which have done well this year and look set to deliver high earnings growth as the domestic economy flourishes. Tuan Le and his team expect US tariffs to have a limited impact on corporate earnings, and note that Vietnam is still competitive versus its regional peers, while exports are actually up on last year despite the controversy.

In fact, 2025 has been VEIL’s best since 2021. FTSE’s decision to upgrade Vietnam to emerging market status next year and a coming wave of IPOs both have the potential to boost the stock market in the coming months . VEIL was a cornerstone investor in this year’s blockbuster IPO, and is well-placed to benefit from a series of deals expected over the next year or two. Meanwhile, the portfolio is still modestly valued, despite the exceptional earnings growth expected.

The Discount remains attractive at 15.5% at the time of writing, despite narrowing substantially this year as the board has stated a commitment to bringing it under 10%. They have bought back a significant number of shares so far, demonstrating this commitment with action.