Vietnam : Monthly Investor Report

VietNam Holding Limited ("VNH" or the "Company")

Monthly Investor Report

A report detailing the activities of the Company for the month of February 2015 has been issued by VietNam Holding Asset Management Limited, the investment manager of the Company. Electronic copies of the report have been made available to shareholders on the Company's website athttp://www.vietnamholding.com/latest-publications.aspxand a summary of the report is included below.

Investor Report Summary

Vietnam News

February was a short month in Vietnam, truncated by the ten-day Tet holiday. Market sentiment in the month was largely positive, with the Vietnam All Share Index (VNAS) rising 1.6% in the month to 575. The economic growth outlook for 2015 (6.2%e) remains positive, supported by data such as the HSBC February Purchasing Managers` Index, at 51.7 (January - 51.5; December - 52.7), and non-existent inflation (minus 0.05% year-on-year for the four weeks to mid-Feb), which provides scope for still-further interest rate cuts (currently 4.5% for the discount rate and 6.5% for the refinance rate).

Quiescent inflation also provides an opportunity for the liabilities of the largest state-owned enterprise, national electricity distributor EVN, to begin to be addressed with price increases - a much more politically difficult exercise in an environment with higher cost of living pressures.

VNH Insights

VietNam Holding's NAV per share at the end of February was US$ 2.07, up 1.1% for the month (and up 0.5% ytd) versus a 1.6% rise (ytd up 3.3%) for the VNAS. For the last five years, the fund is up 52.7% versus the VNAS which is up 1.4%.

We remain strongly committed to our top investment themes of consumption and urbanisation; during the month our consumption theme weighting rose by 7 percentage points to 45% of the portfolio, with a 23% weighting for urbanisation. In comparison to the VNAS, we are heavily overweight in healthcare, retail, and construction/materials; and very underweight in banks, other financials, and property.            

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