Vietnam Holding Ltd (LON:VNH) has issued a report for the performance of the fund over the month of October, following an activities report issued last week by its investment manager, Dynam Capital Limited.

The closed-end fund reported that as of October 31 its net asset value (NAV) stood at 206p per share, a 3% rise month-on-month and ahead of the 2.8% rise for the Vietnam All Share Index (VNAS).

READ: VietNam Holding posts Monthly Investor Report detailing the activities of the company for October 2020

The company highlighted what it said was a “significant contribution” from steel producer Hoa Phat Group, which grew 15.8% in the period and comprises 9.6% of the total NAV. The fund’s largest investment, IT firm FPT Group, which comprises 9.7% of NAV, grew 3%.

Vietnam attributed its performance ahead of the VNAS to overweight holdings in selective companies across the industrial, retail, banking and telecommunications, adding that its holding in Vietin Bank is “well-positioned for further growth” given an amended government law on the investment and management of state capital, which allows the country’s largest banks to expand their business activities.

Looking ahead, the fund said Vietnam’s resiliency during the pandemic through the coronavirus pandemic had “helped raise its profile as a major trade partner” and expected trade relations with the country and other nations to “gain further momentum”. The group also anticipated that the country’s economy will return to an expansion rate above 6% next year given its “multiple engines of growth”.

Shares in Vietnam Holding were up 0.3% at 155p in late-afternoon trading on Monday, a 25% discount to the company’s NAV.