Results analysis from Kepler Trust Intelligence

Vietnam Enterprise Investments (VEIL)

28/04/2026

Results analysis from Kepler Trust Intelligence

Vietnam Enterprise Investments (VEIL) has reported strong results for 2025 as the Vietnamese market rebounded despite short-term volatility surrounding US tariff announcements. The NAV total return was 24.5% in USD terms, or 15.9% in GBP, outperforming the two other Vietnam investment trusts by a wide margin, with both posting negative GBP returns. However, VEIL's performance was behind the VNI benchmark which was up 38.8% in USD or 29.2% in GBP, due to exceptional returns of c. 700% from the largest company in the index, VinGroup. The strong returns were achieved despite overseas investors being big net sellers of Vietnamese equities, with domestic investors taking up the baton. This could bode well for the market when foreign investors return, with the market set to be included in the FTSE Emerging Series in September. Banks and retailers were among the best performers for VEIL over the year, as the portfolio benefitted from being positioned in stocks exposed to domestic growth, urbanization and infrastructure spend.

Kepler View

A strong combination of growth, valuation and technical factors support investment in Vietnamese equities. Entering the year, GDP was forecast to grow at 10% in 2026, and in fact delivered 7.8% annualised in the first quarter, a record for Q1. Meanwhile, the market traded at around 11x forward earnings as of 01/04/2026. On the technical side, in September Vietnam will be promoted to emerging market status by FTSE, which Dragon Capital estimate could see $6-8bn cumulative inflows over 12-18 months.

Vietnam Enterprise Investments' (VEIL) portfolio is positioned to benefit from surging domestically-driven growth. Manager Tuan Le Anh has increased the portfolio's exposure to leading private sector champions following the introduction of Resolution 68, expecting it to facilitate greater private sector investment in large-scale development projects. Additionally, he has added to the brokerage firm SSI in order to benefit from anticipated greater liquidity, the IPO pipeline, and the FTSE upgrade. New positions in the energy sector should benefit from renewed domestic oil production in the light of higher energy prices. Meanwhile the trust remains heavily invested in the banking sector which should benefit from growing demand for loans, and in particular in those with stronger earnings momentum.

VEIL's discount has narrowed in recent months, but we still regard it as attractive in the light of its growth outlook and the expected further tender offer as well as, over the longer run, a performance-related 100% tender offer. The volatility surrounding the current conflict in the gulf may prove to have been a good opportunity to top up, although we note the local market has already made back most of the losses after the outbreak of the war.

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