Vietnam Enterprise Investments Limited (VEIL) is a closed-end fund, incorporated in the Cayman Islands and trading on the Main Market of the London Stock Exchange.

Launched in 1995, VEIL is the longest running fund focused on Vietnam and one of the largest which invests primarily in listed and pre-IPO companies in Vietnam that offer attractive growth and value metrics, and strong corporate governance.

Investment Policy

Investment objective

VEIL’s objective is to seek medium to long term appreciation of its assets. The fund looks to outperform the VN Index Total Return in US Dollar term on a rolling 3-year basis.

VEIL also aims to promote the awareness and assist in the adoption of higher standards in Environmental, Social and Governance (ESG) among its investees.

Investment policy

VEIL seeks to achieve its investment objective by investing in companies primarily operating in, or with significant exposure to, Vietnam. Whilst the Company’s portfolio will reflect a focus on Vietnam, the Company may also invest up to, in aggregate, 20 per cent of Net Asset Value at the time of investment, in companies operating in, or with significant exposure to Cambodia and Laos.

VEIL expects that the majority of the investments comprising the portfolio will be equity securities admitted to trading on the Stock Trading Center of Vietnam in Ho Chi Minh City, the Hanoi Stock Exchange, or on another stock exchange. VEIL may, nonetheless, invest in unlisted equity securities and listed or unlisted debt securities or loan instruments.

The companies in which VEIL will invest may have any market capitalisation and may operate in any industry. In respect of the debt securities in which VEIL may invest, these may be fixed or floating rate and may have any credit rating or may be unrated.

VEIL may seek exposure to securities directly or indirectly and VEIL may use derivatives for investment purposes and efficient portfolio management. VEIL may invest in investment companies that have, as their main objective, a focus on investing in securities falling within the VEIL’s investment policy. Investments in other investment companies will not exceed 10 per cent of Net Asset Value at the time of investment.

VEIL does not intend to take legal or management control of any investee company. VEIL may also hold cash or other short term investments such as commercial paper or certificates of deposit. Under normal market conditions, it is expected that VEIL will be substantially fully invested in investments meeting its investment policy. However, where considered prudent to do so (for example, in the event of a lack suitable investment opportunities or in times of falling markets or market volatility), VEIL’s portfolio may reflect a significant weighting to cash or other short term investments.

Investment restrictions

VEIL will observe the following investment restrictions in each case calculated at the time of investment:

  1. no more than 20 per cent of the gross assets of the Company may be exposed to the creditworthiness or solvency of a single counterparty;
  2. no more than 20 per cent of the gross assets of the Company may be invested in any one issuer; and
  3. no more than 40 per cent of the gross assets of the Company may be invested in any one industrial sector.


VEIL is permitted to borrow money and to charge its assets. VEIL will not have aggregate borrowings in excess of 20 per cent of the Company’s Net Asset Value at the time of borrowing.

VEIL may borrow for the purposes of capital flexibility, including for investment purposes.
The Board will oversee the level of gearing in VEIL, and will review the position with the Investment Manager on a regular basis.