Vietnam Enterprise Investments (VEIL)

Vietnam Enterprise Investments (VEIL) is heavily invested in the booming domestic Vietnamese economy, which shrugged off last year’s tariff panic and this year’s oil price panic to post record GDP growth for Q1 2026. The Vietnamese authorities have doubled down on an ambitious reform programme which is funnelling public and private investment into strategic economic development, aiming to recreate China’s rise of the 1990s and 2000s, in pursuit of Vietnam’s ‘era of ascendence’.

Manager Tuan Le has focussed the Portfolio on the key themes of banks, infrastructure and domestic consumption, all of which he thinks will generate big winners in the domestic stock market. In the aftermath of the outbreak of war in the Middle East, he has reduced some interest rate sensitive and highly leveraged stocks, such as those in the real estate sector, but leant into the banking and retailing sectors. Even accounting for the impact of high energy prices, the team at Dragon Capital estimate the Vietnamese market will deliver earnings growth of c. 18% this year, while they expect inflation to remain below target even if oil prices average over $100 for a year.

VEIL has delivered strong returns over the past 12 months. The NAV total returns were 25.3% to 31/05/2026 in the recovery after the tariff tantrum of last spring. In 2025 it delivered GBP returns of 15.9% while the two other Vietnamese trusts posted negative returns. The share price total return was even higher at 38.4% thanks to a narrowing discount, which is 11% at the time of writing. The board has taken decisive action with significant buybacks and a 10% tender, and announced a second in the coming months. Nonetheless it remains the largest Vietnamese trust with over £1bn in total assets.

VEIL will hold its AGM on 25/06/2026 at Stationers’ Hall in London. You can sign up at this link.