It’s difficult to generate excess returns if you’re not allowed to underperform the index in the short term.
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Here is PYN Elite’s “November” letter 
VN Index up 3.1% thanks to Vingroup companies. Without their rise, the index would have fallen 1.2%. Investor sentiment was cautious due to political discussion and tightened liquidity. Overnight interest rates rose as year-end credit demand exceeded deposit growth. This weakened sentiment in interest-rate-sensitive sectors such as banks and brokers. PYN Elite fell 5.8% mainly due to Sacombank (STB). The auction of STB shares held by the state asset management company (VAMC) was postponed to H1 2026, which was a disappointment for investors. Additionally, one-off loan loss recoveries were used for provisions. This strengthened the balance sheet but fell short of investors’ short-term earnings expectations.
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Below is a story about how Chinese companies are now pouring into Vietnam in large numbers, bringing a record amount of investments and goods into the country, even as the United States urges the country to distance itself from China. Trump is uniting other countries.
Hanoi is already accepting Chinese loans, Huawei and ZTE deals, and Chinese machinery, at least partly as a countermeasure to US tariffs and partly to balance superpower relations.
China has become Vietnam’s largest investor and also its largest supplier; electronics and electric vehicles, in particular, are selling well, and Chinese brands are dominating online stores.
Joint ventures and technology transfer are strengthening China’s grip on industry and making it harder to balance between China and the West.
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PYN Elite’s latest investor letter has been published and can be found HERE. In the investor letter, the portfolio manager states that he himself made “a significant additional investment.” What constitutes “significant” remains open, of course, but Deryng hasn’t mentioned making investments in a long time, so this can be considered at least a positive sign.
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PYN has come down quickly and sharply.
Today’s investor letter seems like an excuse, if the points highlighted are that PYN “has beaten the ETF over a five-year period” and that Petri Deryng himself has bought more…
Such things certainly erode my own faith further.
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Free quote from an investor letter: “The index would have been outperformed this year too if the four best-performing stocks were excluded from it.” 
Undeniably a bit of an excuse, but ‘onwards,’ as grandma said in the snow.
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“The index could have been outperformed this year too if the four best-performing stocks were excluded from the index.”
“the stars of the past year, i.e., VIN Group’s four stocks: VIC, VHM, VRE, and VPL”.
Something familiar in some of these…
In July 2023, VHM (Vinhomes) was the largest stock in our portfolio with a 15.2% share and was presented as the stock of the month.
At the same time, VRE (Vincom Retail) is the 3rd largest stock in our portfolio with a 9.6% weighting.
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Sacombank is surging, and I went to see if there was an announcement; apparently, PYN has sold their entire position or most of it? I came across a short announcement:
Doesn’t look like PYN shareholders will get much joy out of today’s rally..
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PYN Elite Fund (Finland) reduced its stake in Sacombank to 4.86% after selling 4 million STB shares, officially stepping down as a major shareholder of the bank.
PYN Elite Fund reduces its stake to below 5%.
PYN Elite Fund (Finland) has sold 4 million shares of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank, ticker symbol: STB), thereby ceasing to hold a major shareholder position. The transaction took place on December 9, 2025.
According to the announcement, PYN Elite Fund reduced its holdings of STB shares from over 95.6 million to 91.6 million units. Consequently, the fund’s ownership stake in Sacombank decreased from 5.07% to 4.86%, falling below the 5% threshold required to be recognized as a major shareholder."
→ No major drama here. I would have been surprised if a large move were suddenly made in the portfolio, e.g., by selling off the holding largely or entirely. However, Sacombank still has that special situation ongoing and the stock is still fundamentally cheap.
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The U.S. National Security Strategy 2025 does not mention Vietnam, but it has a strong impact on it. The United States is now focusing on competition with China and includes the economy, technology, and supply chains as part of security.
In the South China Sea, U.S. support can help Vietnam, but tightening tensions could also draw the country into a conflict. Conversely, the shift of production from China to Vietnam may bring investments, but at the same time, requirements and risks are increasing.
The NSS 2025 also identifies high-tech sectors as key fronts of strategic competition, from semiconductors to artificial intelligence and digital infrastructure. For Vietnam, deeper participation in technology value chains led by the US and its partners is a long-term development goal. However, the Vietnamese economy still shows close ties with China, both in trade and intermediate production inputs. This intertwining makes maintaining and expanding investment from large US technology corporations more complex, as concerns about technology leakage increase.
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According to Vietnam’s central bank, a growth target of over 10 percent for next year will be difficult to achieve due to external risks.
A representative of the State Bank of Vietnam highlighted the impacts of the Fed’s monetary policy and U.S. tariff policy, among others, even though this year’s 8 percent growth appears likely to be achieved.
“Since the beginning of 2025, complicated and unpredictable developments of the global markets, such as the Fed’s unpredictable monetary policy and the tariff policy of the U.S. government, have been affecting the economy, the foreign exchange market and exchange rates,” Quang said.
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The VN-Index ended the year at 1784.49 points. The 1800 “guessed” back in July was a bullseye, at least to my surprise. It’s just a pity that the rise isn’t reflected very strongly in PYN’s value.
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Vietnam wants companies to expand more boldly abroad. Exports are performing well, but on the other hand, many firms still only sell to “easy” countries and thus do not dare to grow; furthermore, they remain subcontractors, meaning a large portion of the value goes to other players.
The proposed solution is to move up the value chain, which means more in-house product development, design, branding, and also direct sales.
The article also highlights that the digital and green transitions are important; although Vietnam has 17 free trade agreements, they are underutilized due to a lack of expertise and resources.
Finally, Vietnam must strengthen its local platforms. Exports remain heavily dependent on FIEs, and low local sourcing is a long-term vulnerability. Going global must start at home, by helping local SMEs grow alongside FIEs through faster certification and supplier development programs.
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The article below provides some insight into Vietnam as well, even though the story focuses partly on Bac Ninh, located north of Hanoi, which has rapidly transformed from an area known for rice fields and traditional culture into one of the country’s busiest industrial hubs.
Samsung’s investments kickstarted the boom; furthermore, in recent years, Chinese companies have also increased production due to the “China +1” strategy and US tariffs.
However, growth brings pressures such as labor shortages, rising wages, and infrastructure constraints. Vietnam is aiming to respond by investing in logistics, higher-value manufacturing, and also new export markets.
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The tweet below highlights how US imports from Southeast Asia rose to a record $40 billion in the third quarter of last year, 2025, even though tariffs have been imposed on products from the region.
Led by Vietnam, this growth is a result of companies’ desire to avoid counter-tariffs against China and leverage Southeast Asia’s significant cost advantage, which has led to a rerouting of “trade flows” and a sharp 40 percent drop in Chinese imports.
Vietnam led the surge, with imports rising to ~$18 billion, an all-time high.
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Damn it - Our horse just went into a completely wild gallop. Bloody hell.
Overall, the Vietnamese banking sector is doing quite well.
Sacombank in 2025: Estimated profit reaches half of target, high non-performing loans return.
Despite utilizing its allocated credit limit, Saigon Thuong Tin Commercial Joint Stock Bank (SACOMBANK) ended 2025 with significantly lower business results than expected. The immense pressure of provisions and the sudden surge in bad debts led to a decrease in the bank’s profit, reaching only nearly 50% of the target set at the General Shareholders’ Meeting.
Non-performing loans far exceed the threshold, and loan loss reserves are insufficient.
A notable aspect of SACOMBANK’s 2025 financial picture is its asset quality. The non-performing loan ratio on outstanding customer loans has surged to 6.31%, while the non-performing loan ratio on total credit extended is 4.95%. These figures are not only significantly higher than the industry average but also far exceed the State Bank of Vietnam’s 3% control threshold.
While bad debts are rising, the “shield” protecting banks is showing signs of weakening. The bad debt coverage ratio is currently only 49.20%. This means that for every 100 dong of bad debt incurred, banks have only provisioned for nearly half, creating a significant financial safety gap if these debts cannot be recovered.
Furthermore, capital efficiency was significantly affected. The return on assets (ROA) reached only 0.72%, and the return on equity (ROE) stalled at 10.52%. The cost-to-income ratio (CIR) remained at 39.79%, indicating that while the bank was striving to optimize operating costs, this was insufficient to offset credit losses.
The whole story can be read using Google Translate here.
For some strange reason, buyers can still be found and it’s only -6% on the board.
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Here is a fresh fund publication from Petri.
The Vietnamese stock exchange’s VN Index recorded a fantastic year, rising +40.9%. The conglomerate VIN Group’s main stock, VIC, recorded a staggering 736% increase for the year. The weight of the VIC stock in the VN Index is 16%, and the combined weight of the entire VIN Group’s stocks rises to over 20%. VIC’s market capitalization was recorded at 42 billion euros at the end of the year, and with these figures, it is the most valuable company on the Vietnamese stock exchange.
The explosive rise of the VIC stock played a leading role in the VN Index’s excellent annual return. If the four VIN Group stocks were excluded from the index, its annual return would have been +12.9%.
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And here is the official The Fund Review from December
In December, the VN Index rose +5.5%, and the year ended at record highs of 1,784 points. The rise was still heavily dependent on Vin Group companies. At the same time, banking liquidity has begun to tighten: by December 24, credit growth was already nearly 18 percent, clearly exceeding deposit growth (14%). This growing gap has led to a rise in interest rates in recent weeks. PYN Elite rose +2.9%, mainly thanks to the stock performance of HDB and STB. STB gained further momentum from the appointment of a new CEO. A highly respected individual in the industry was selected for the position, who implemented significant changes as the Chairman of the Board of LPBank. The strategic leadership change is a strong signal to the market that STB is moving into the final phase of its multi-year restructuring process.
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The U.S.-based Murphy Oil has made a significant oil discovery off the coast of Vietnam.
The Hai Su Vang deposit is reportedly one of the largest in Southeast Asia in decades, and its reserves exceed 430 million barrels.
The discovery may be important for Vietnam’s rapidly growing economy, which is targeting growth of up to 10 percent this year. Domestic oil production secures the energy supply required for industrialization, strengthens the trade balance, and helps the country return to being an oil exporter as energy dependency grows.
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Looks like we’ll be up over 3% tomorrow if currencies don’t mess things up. By the way, is there somewhere to see all the holdings, and not just the top 10?
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