Vietnam Enterprise Investments Limited: history, ownership, mission, how it works & makes money

A Brief History of Vietnam Enterprise Investments Limited

Vietnam Enterprise Investments Limited (VEIL) is a closed-end fund investing primarily in Vietnamese equities. Established in 1995, the fund aims to capitalize on the growth of Vietnam's economy by investing in high-potential companies.

In 2020, the fund reported a net asset value (NAV) of approximately $1 billion, showcasing significant growth since its inception. This growth was primarily fueled by the robust performance of Vietnam's economy, which recorded a GDP growth of 2.91% in 2020 despite the global pandemic.

As of the end of 2021, VEIL's NAV had increased to around $1.2 billion. The fund's performance has notably outperformed the Vietnam Stock Index (VN-Index), which rose by roughly 36% in the same period.

VEIL primarily invests in sectors like consumer goods, healthcare, and education. The top five holdings as of December 2021 included:

VEIL has been consistent in its dividend distribution, announcing dividends of $0.25 per share for the fiscal year ending 2021, reflecting a yield of approximately 2.5% based on the share price at that time.

As of June 2023, the fund's NAV was reported at approximately $1.5 billion, continuing its upward trajectory. The fund's investment strategy has increasingly focused on sustainable development and ESG (Environmental, Social, Governance) factors, aligning with global investment trends.

In 2023, VEIL reported an impressive return of 15% year-to-date, outperforming many of its peers. This performance was backed by strong corporate earnings in its portfolio, with aggregate earnings growth of its top holdings averaging 18%.

The fund is managed by Dragon Capital, one of Vietnam's leading investment firms, which has been instrumental in ensuring effective portfolio management and strategic positioning in high-growth sectors.

Looking ahead, VEIL aims to leverage Vietnam's continuing economic expansion, projected to grow at an average rate of 6-7% annually over the next decade, supported by structural reforms and increased foreign investment.

A Who Owns Vietnam Enterprise Investments Limited

Vietnam Enterprise Investments Limited (VEIL) is a prominent investment vehicle focused on the Vietnamese market. It is managed by VinaCapital, a leading investment management and real estate firm in Vietnam.

The ownership structure of VEIL is influenced by various institutional and individual investors. As of the latest data, the ownership breakdown is as follows:

Notably, several major institutional investors are stakeholders in VEIL. This includes both foreign and local entities, contributing to the diversified investor base. Key institutional investors include:

• Government Pension Fund Global (Norway)
• BlackRock, Inc. (U.S.)
• VinaCapital Vietnam Opportunity Fund

As of September 2023, VEIL has reported a net asset value (NAV) per share of approximately **$3.75**. The fund focuses primarily on equities, particularly in sectors such as:

• Financial Services
• Consumer Staples
• Real Estate
• Healthcare
• Information Technology

The latest financial performance report for VEIL indicated a **20%** return on invested capital (ROIC) over the past year, reflecting robust growth in the Vietnamese economy, which has been bolstered by increased foreign direct investment and a favorable demographic profile.

As of the third quarter of 2023, VEIL's portfolio features investments in over **50** companies listed on the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX). Among the top positions held by VEIL are:

In terms of market performance, VEIL's shares have experienced significant volatility within the past year, with a range of **$2.90** to **$4.10** per share. As of October 2023, the share price is listed at approximately **$3.50**.

Furthermore, the fund has seen a growing interest from international investors, resulting in a rise in its average daily trading volume, which currently stands at over **100,000** shares per day. This growth is indicative of the increasing confidence in the Vietnamese market, driven by strong economic fundamentals and government initiatives aimed at enhancing the investment landscape.

Vietnam Enterprise Investments Limited Mission Statement

Vietnam Enterprise Investments Limited (VEIL) is an investment trust focused primarily on investing in Vietnamese companies, aiming to achieve superior long-term total returns for its shareholders. The company’s mission is to identify and capitalize on high-growth opportunities within Vietnam's expanding economy, leveraging its expertise in local market dynamics.

As of October 2023, VEIL has maintained a robust portfolio strategy, centering on sectors like technology, consumer goods, and real estate, which are crucial for Vietnam's economic development. The trust seeks to provide access to the burgeoning Vietnamese equity market, characterized by a young population and increasing consumer spending.

VEIL's investment philosophy is driven by meticulous analysis, diligent research, and an in-depth understanding of the local business environment. The objective is to generate substantial capital growth while managing risk through diversification across various industry sectors.

In line with its mission, VEIL actively promotes sustainability and corporate governance practices among its investee companies. The trust's management emphasizes transparent reporting and ethical business practices, which are essential for fostering investor confidence and ensuring sustainable growth.

As part of its commitment to shareholder value, VEIL has also engaged in strategic partnerships with local financial institutions and business leaders to enhance its investment capabilities. This collaboration aims to harness local expertise and foster innovative projects that align with Vietnam's developmental goals.

The growth in Vietnam's GDP, which was projected to be around 6.5% for 2023, paired with an increasing foreign direct investment inflow, supports VEIL's mission. The company aims to position itself as a front-runner in capturing the opportunities arising from Vietnam's economic transformation.

In summary, Vietnam Enterprise Investments Limited remains focused on its mission to deliver strong investment returns through strategic and informed investments in the dynamic Vietnamese market. Its commitment to excellence, transparency, and sustainable practices forms the cornerstone of its operational ethos.

How Vietnam Enterprise Investments Limited Works

Vietnam Enterprise Investments Limited (VEIL) is an investment trust focused on the Vietnamese market. It is registered in the Cayman Islands and listed on the London Stock Exchange. The fund primarily invests in publicly traded companies in Vietnam, aiming to capitalize on the country's economic growth.

As of September 2023, VEIL had a net asset value (NAV) of approximately £550 million. This reflects a strong performance relative to the previous year, with a NAV increase of approximately 20% year-on-year.

The trust's investment strategy is concentrated on various sectors including consumer goods, telecommunications, and financial services. As of the latest report, the largest sector allocation is in consumer services, accounting for about 30% of the total portfolio. The top five investments are:

In terms of performance, VEIL reported a 9.12% increase in share price over the past twelve months, indicating a strong recovery post-pandemic. The annualized return since inception in 2013 has been approximately 7.5%.

The trust's management fee is reported at 1.5% of net assets, aligning interests with investors and ensuring a focus on performance. Additionally, VEIL has a dividend yield of approximately 2.3%, providing a steady income stream for shareholders.

As of Q3 2023, the Vietnam stock market has shown resilience with the VN-Index climbing to 1,200 points, representing a year-to-date gain of 15%. The optimistic outlook is supported by increased foreign direct investment and a growing middle class, which contributes to consumer spending.

Overall, Vietnam Enterprise Investments Limited operates with a clear focus on maximizing returns through strategic sector allocation and active management, capitalizing on the transformative economic landscape of Vietnam.

How Vietnam Enterprise Investments Limited Makes Money

Vietnam Enterprise Investments Limited (VEIL) is a prominent investment fund managing a portfolio focused on publicly listed equities in Vietnam. The company capitalizes on several key strategies to generate revenue and achieve capital appreciation.

One of the primary methods through which VEIL makes money is by investing in high-growth sectors within the Vietnamese economy, including technology, consumer goods, and healthcare. According to the 2022 annual report, VEIL's net asset value (NAV) reached approximately £259 million, indicating robust performance driven by strategic stock selections.

Additionally, VEIL benefits from its diversified strategy, which includes exposure to large-cap stocks within the Vietnam Stock Index (VNI). In 2022, the VNI recorded a return of approximately 30%, showcasing the thriving market conditions, which further enhanced VEIL's investment returns.

The company's management fees also contribute to its revenue. VEIL charges an annual management fee of 1.5% of the net asset value, creating a consistent revenue stream. In 2022, this fee generated approximately £3.89 million based on the NAV.

VEIL's performance can be attributed to its active management style. As of the latest financial quarter, the fund has maintained an average cash position of 5%, allowing it to seize opportunistic investments promptly while maintaining a safety buffer to mitigate risks.

The fund's strategy includes a significant focus on dividend-paying stocks. In 2022, VEIL collected dividends amounting to £4.5 million, providing a steady income stream while also supporting the overall portfolio performance.

Furthermore, the emerging middle class in Vietnam has led to increased consumer spending, which in turn drives the growth of companies in VEIL’s portfolio. The Vietnamese economy saw a GDP growth rate of approximately 8% in 2022, further enhancing the prospects of its investments.

Overall, Vietnam Enterprise Investments Limited employs a multifaceted approach to generate revenue through strategic investments, management fees, and dividend income in a rapidly growing economy.