According to a newly released May report, Pyn Elite Fund witnessed a 5.4% performance boost, attributed to the strong performance of HVN, GEX, and securities stocks. As of the end of May, the foreign fund’s portfolio size reached nearly EUR 770 million (~ VND 23 trillion). Bank stocks continued to dominate with a 47% allocation, despite trimming TPB holdings.
In contrast, the fund has allocated a significant portion to VIB bank and increased its stake in MBB. Pyn Elite Fund revealed a roughly 3% additional allocation to MBB, raising the stock’s weight to 12.4% (second only to STB). It is estimated that the fund injected an additional EUR 23 million (~ VND 700 billion) to purchase approximately 26 million MBB shares.
Pyn Elite Fund attributes MBB’s initial unpopularity to concerns about asset quality and limited investor access. Despite demonstrating robust financial performance, MBB saw muted reactions as investors awaited clearer signs of asset quality improvement.
In May, Novaland, one of MBB’s key clients, received approval to resolve issues at Aqua City and plans to resume sales in Q3. Meanwhile, the government increased retail electricity prices and promulgated Power Development Plan 8 to boost the electricity sector. These developments are expected to enhance MBB’s renewable lending portfolio, which has faced legal and repayment challenges.
Assessing the broader banking sector, Pyn Elite Fund characterizes 2024 as a challenging year with slower-than-usual income growth. This is attributed to issues in the corporate bond market in Q3 2022 and their transitional impacts on the real estate market and consumer confidence.
The fund anticipates a significant reduction in overall loan provisioning needs this year, with a corresponding boost to income. Additionally, Pyn Elite Fund expects the National Assembly to pass Resolution 42 in June, enabling banks to dispose of collateral much faster and resulting in significant additional income recognition.
Economic Recovery Continues
Commenting on the broader market, Pyn Elite Fund highlights an 8.7% surge in the VN-Index during May, with 40% of the gain driven by Vingroup and Vinhomes, fueled by robust individual investor participation following high-speed rail news and supportive government policies. Market sentiment improved as Vietnam held its second trade negotiation with the US in May and commenced the third round in June.
The government issued Resolution 154, targeting GDP growth of over 8% in 2025 and 8.2% for Q2 (Q1: 6.9%). This resolution supports infrastructure spending and aims to boost the private sector. Pyn Elite Fund notes that regulatory approvals are being expedited, particularly in renewable energy and real estate sectors.
On the macroeconomic front, the standout highlight for May was public investment, with disbursements reaching USD 2.7 billion, double the five-year average, bringing the total for the first five months of 2025 to USD 7.7 billion (+38.8% year-on-year). This aligns with the government’s focus on infrastructure development and underscores its commitment to swift approvals.
The economy continues its recovery trajectory, with retail sales growing 10.2% year-on-year in May (+9.7% in the first five months of 2025), while IIP accelerated to +9.4% year-on-year (+8.8% in the first five months). FDI momentum strengthened, with accumulated registered FDI reaching USD 18.4 billion (+51.1% year-on-year for the first five months). Exports rose 17% year-on-year in May, partly due to front-loading activities.
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