VEIL Monthly Report – October 2025

Top View Aerial Photo From Flying Drone Of A Ho Chi Minh City With Development Buildings, Transportation, Energy Power Infrastructure.

At a glance

VEIL’s NAV slipped 2.0% in October, trailing the VNI’s 0.7% dip as investors locked in profits from banks and brokers after a strong run.
Consumer discretionary and financials delivered strong Q3 earnings with broad-based profit growth.
Positioning remains conviction-driven and domestic-focused, with selective additions to private-sector leaders in real estate and capital markets poised to capture Vietnam’s next leg of reform-led growth.

Performance

Fund Commentary

VEIL’s NAV fell 2.0% in October versus a 0.7% decline in the VNI. Banks and brokerages, which together account for 43.9% of NAV, gave back part of their recent gains and detracted 2.3%. Q3 results were strong, high quality, and broad based, with standout performances in areas where VEIL is overweight, especially consumer discretionary and financials. Consumer discretionary NPAT more than doubled on the highest revenue in five quarters.

Portfolio holdings reflected this strength, with Mobile World supported by sustained profitability in Bach Hoa Xanh and Phu Nhuan Jewelry benefitting from higher gold prices and low cost inventory. Record liquidity and margin lending lifted brokerage profits by nearly 200% YoY, and our newly established positions in TCBS and VPBank Securities reflect conviction in Vietnam’s IPO and private placement pipeline. Banks also saw firmer fee income alongside steady credit demand and debt recoveries.

The real estate recovery has validated our positioning, with transactions up nearly 20% in the first half of the year and government revenue from land-use fees already surpassing the 2024 total at a record $9.4bn. Our real estate holdings are benefiting from this renewed developer confidence, supported by clearer regulation and faster project approvals that are converting backlogs into sales.

We remain focused on companies growing domestic earnings, private businesses with clear approvals and sound discipline, and capital market reforms that deepen access and liquidity. Key watch points remain the global trade and rate environment, FX liquidity and negative pressure on the Vietnam dong, and the execution risk of major infrastructure projects that are core to economic growth. These factors may sway sentiment in the near term, but they do not change our domestic demand thesis. Looking to 2026, our base case is that profits continue to compound, with domestic private sector engines leading VNI earnings growth of circa 16%.

Stock in Focus: Phu Nhuan Jewelry (PNJ)

Founded in 1988, PNJ is Vietnam’s leading jewellery retailer-manufacturer, with a market cap of approximately $1.5bn. Operating more than 400 stores nationwide, it is the clear market leader in branded jewellery and a prime beneficiary of Vietnam’s rising middle class and growing household wealth, key themes within VEIL’s domestic consumption strategy.

PNJ delivered stronger-than-expected 3Q25 results, with revenue up 14% YoY and NPATMI surging 130% YoY. A 15% rise in local gold prices fuelled demand for gold and gold jewellery as investment assets. Gold trading revenue jumped 83% YoY, while retail jewellery sales rose 4% YoY. Gross margin expanded to 19.8% from 17.5% in 3Q24, supported by low-cost inventory and higher selling prices. Margins are expected to remain at this level through 4Q25 and 1Q26, supported by seasonal demand.

Selling expenses were well managed, improving to 14.9% of retail sales from 15.4% a year earlier. Together with steady operating costs and strong earnings quality, PNJ is positioned to benefit from improving consumer sentiment amid a buoyant property and equity market backdrop. We forecast NPAT growth of 14% in 2025F and 10% in 2026F. With its strong brand, disciplined execution, and exposure to Vietnam’s formalising retail gold market, PNJ remains a core holding in VEIL’s domestic consumption theme.