Update and fact sheets November

In November, the TCM Vietnam fund achieved a return of 5.98%. The fund outperformed the VN-Index, the index of the Vietnamese stock exchange, which rose by 4.9% during the same period, measured in euro. Since the beginning of this year, the fund's return amounts to 15.78% compared to 5.73% for the index.

Notable is the performance of stocks in sectors such as infrastructure, urban planning, and the development of industrial parks, which have significantly increased in value since the beginning of the year. The fund has invested in companies like Tu Liem Urban Development (+75%), Tin Nghia Industrial Park (+44%), Hoa An (+42%), and Becamex Infrastructure Development (+33%).

A part of this outperformance can be attributed to the substantial stimulus package of 16 billion dollars (4.1% of GDP) introduced by the Vietnamese government last year. About 5 billion USD of this package is allocated to infrastructure projects, which is expected to have the most significant impact on the economy. A considerable portion of this investment is earmarked for the construction of the North-South highway. This project will not only support real estate prices in the involved regions but also stimulate the development of new satellite towns and industrial centers outside major cities like Ho Chi Minh City and Hanoi. It will also contribute to lower transportation costs in Vietnam, which currently are among the highest in the world.

In addition to these government investments in infrastructure, foreign companies continue to show interest in Vietnam, with plans to invest or expand existing operations. For example, this month Apple announced moving a part of the research and development for the iPad from China to Vietnam. On November 2, 2023, Dutch Prime Minister Mark Rutte announced that Dutch chip companies, including BESI with an investment of 5 million dollars, will invest in Vietnam. From the United States, news came that Nvidia Corp plans to establish a chip factory in Vietnam, following an earlier investment of 250 million dollars.

In December, Chinese President Xi Jinping will visit Vietnam for the first time in six years. This visit coincides with increasing competition between Beijing and Washington for influence in this strategically important Southeast Asian country. Xi Jinping is expected to come with billion-dollar projects, including a new railway line and projects for rare earth metals.

This stream of investments and developments points to a positive future for the Vietnamese economy. With the continued interest of both domestic and international investors, Vietnam seems well-positioned to achieve significant economic growth in the coming years. This will not only benefit the country in the short term but also lay a solid foundation for sustainable development in the long term.

More news about Vietnam, Africa and the Global Frontier fund can be found in the latest fact sheets of the equity funds:

TCM Global Frontier High Dividend Equity

TCM Vietnam High Dividend Equity

TCM Africa High Dividend Equity