VietNam : Interim Report

Financial Highlights

• Net Asset Value ("NAV") per share outperformed Vietnam All Share Index ("VNAS") by 3.7%
• Fund has outperformed the VNAS on one, three, five and ten-year basis
• Portfolio Price Earnings ratio is 7x with a forecast EPS growth of 25%

Interim Report 2022

Company Overview

Focused Investment Approach

Investment Manager

Portfolio of 21 companies with 68.9% in top-ten positions. The portfolio has a price-to-earnings valuation of circa 7x and an earnings growth forecast of circa 25% for 2023.

Dynam Capital Ltd

Vietnam specialist, regulated by the Guernsey Financial Services Commission. Partner-owned business whose sole focus is asset management. Appointed Investment Manager on 16 July 2018.

What Dynam Capital Does:

• Top-down& bottom-up research driven fundamental analysis.
• Active engagement with portfolio companies on ESG.
• Long-terminvestment horizon.

VietNam Holding Limited

Premium Listed London Investment Company established in 2006. Seeks to achieve long-term capital appreciation by investing in a diversified portfolio of companies in Vietnam that have high growth potential at an attractive valuation.

What VietNam Holding Limited Does:

• Capturing the growth of Vietnam through long term investment in an actively managed, high-conviction portfolio of companies.
• Protect shareholder interests by aspiring to the highest standards of corporate governance at both fund & portfolio level.

Interim Report 2022

Chairman's Statement

Dear Shareholder,

VietNam Holding Limited (the "Company" or the "Fund") outperformed a falling equities market during the first six months of the financial year. The net asset value ("NAV") per share declined by 16.8 % in US dollar ("USD") terms during the period versus a decline of 20.5% in the Vietnam All Share Index ("VNAS"). For the calendar year that ended on 31 December, the Fund's NAV per share declined by 30.1% against a 39.8% decline in the VNAS. During that period the Fund maintained its outperformance on a one, three, five and ten-year basis.

As a result of the decline in market value of the Fund's listed holdings, Total Assets decreased to USD 105,983,143 as at 31 December 2022, from USD 129,177,449 at 30 June 2022. Total Comprehensive Loss was USD 21,831,338 in the six-month period, a significant decrease on the Total Comprehensive Income of USD 17,235,713 generated in the corresponding period in 2021.

In addition to the Investment Manager's continuing communications initiatives, the Board made appropriate decisions for implementing share buybacks as a means of addressing the discount between the share price and the NAV. During the period in review, the Company bought back 505,037 shares at an average price of USD 3.248, adding an estimated 0.26 % in NAV per share accretion. The Share buyback authority was renewed by the Shareholders at the AGM in October 2022, allowing up to 14.99% of the Company's issued shares to be bought back. Current practice is that shares bought back are cancelled.

The Board has kept a very close eye on developments in Vietnam during the last six months having travelled to the country both in June 2022 and March 2023 to meet with the Manager's research team and portfolio companies.

We were particularly pleased to witness first-hand the progress the Manager is making with regards to its Environmental, Social and Governance ("ESG") goals. This helps explain why the Fund received two five stars in the UN PRI transparency report and delivered outperformance in the estimated level of Carbon Footprint against the VNAS. The Manager is also continuing its proactive engagement with the Fund's portfolio companies and participation in an ESG conference in Vietnam in May.

2022 marked an important milestone in modern history when as many parts of the world, including Vietnam, were going "back to normal" after two years Covid-19 restrictions, Russia's invasion of Ukraine threw the world into further uncertainty. Although 2022 was a record year for Vietnam's economy, - with its decade high levels of GDP growth (8%), record levels of Foreign Direct Investment, and unmatched trade surplus - it was not a great year for equity investors.

Despite continuing uncertainties globally, 2023 could prove finer for Vietnam. Investors are starting to return to the country's stock markets, with net inflows recorded for the first time since 2019. Additionally, as detailed in the Manager's Report, the market appears to be at historically cheap levels of valuations accompanied with good growth prospects. The Manager also explains how Vietnam can achieve growth despite weakness in the global economy. For example, how reform of the nascent bond market could provide some respite for the real-estate sector in Vietnam, or how the recent government resignations related to corruption scandals can instil some added trust in the country's leadership.

The Manager will continue to seek both sustainable outperformance and strong risk adjusted returns through its active management of our concentrated portfolio of well-researched researched companies.

I would like to thank all our shareholders, old and new, for their continued support of the Company. 2022 has been a very challenging year for investors globally, and we look forward to better results in 2023. Later in 2023 there will be a five-yearly continuation vote for the Company, and we will be in touch with investors during the year with information about the procedures for the vote.

Hiroshi Funaki

Chairman

VietNam Holding Limited

21 March 2023

The last six months of 2022 saw a period of significant volatility in the Vietnamese stock market, resulting in the Vietnam All Share index ("VNAS") falling by 20.5%. Its performance diverged significantly from the underlying economy and reflected twin fears among domestic investors about the weak global outlook and the increased scrutiny of some domestic tycoons and government officials in the crack-down on corruption.

Vietnam's macro-economic performance for the full year was remarkably robust with record levels of disbursed Foreign Direct Investment ("FDI"), (USD 22.4 bn), the second highest trade surplus of all time (USD 11.2 bn), high levels of GDP growth (8%), low levels of inflation (3.15%) and modest currency devaluation (3.4%), despite the stock market playing victim of its own success. In the previous 18 months, record numbers of new investors flocked to the stock market, taking advantage of unrivalled access to mobile trading apps, and streamlined 'KYC' on-boarding processes. These domestic retail investor flows had driven the market to record levels of liquidity and performance in 2021, but in the face of weak global outlook and domestic scandals in 2022, the profit-taking, coupled with margin calls in a soft and volatile market, created fearful market conditions. Much of the selling was indiscriminate, bringing overall market pricing down to levels not seen for several years. Some of the nervousness was focused on the real- estate market on the back of scandals relating to misuse of the proceeds from corporate bonds issuances that culminated in the arrest of a significant property tycoon. The arrest coincided with a restriction on bank credit and the inability to access either bank loans or bonds, pushing one or two large property developers into default on some of their financing obligations. Markets were also rattled by the purges and resignations of political appointees, which were mostly related to inappropriate procurement practices of Covid-19test-kits and Covid-related

repatriation flights. It appears the chain of command is also the chain of responsibility, and at the end of the year two deputy-prime ministers were removed from power. Then, in early January, just before the Lunar New Year 'Tet' holiday, President Nguyen Xuan Phuc announced his retirement.

Despite all this noise Vietnam continued to cement its position as a key manufacturing hub, with 'made in Vietnam' appearing on an increasing amount of the world's inventory of running shoes, garments, and IT accessories. Bilateral trade reached USD 733 bn in 2022, another record year. In fact, over the last five years trade has increased by more than 52%1. China is the largest trading partner (USD 178 bn) followed by the United States (USD 124 bn), Korea (USD 87 bn), Japan (USD 48 bn) and Taiwan (USD 28 bn). Trade with the US has doubled over the last five years, which is indicative of the changing global patterns of trade. When President Trump tweeted against China in 2018, many manufacturers accelerated plans to produce more in Vietnam. The deepening trade war and deterioration in trust between US and China has brought many investors to the friendly shores of Vietnam. Four percent of US imports are now from Vietnam, a level that was quite unimaginable just a few decades ago. Trade can be fickle, and some of the gains came at China's expense because of dislocations brought about by Covid-19 and China's zero-Covid policy response. China has now abandoned this policy, and notwithstanding a soft global economy, may regain some of this market share. However, Vietnam's role in a China-plus-one world supply chain is unlikely to be challenged anytime soon.

FDI and global trade have driven growth In Vietnam's economy, broadly measured by GDP, at an average level of

1 General Statistics Office. GSO