In April 2023, the industrial production index experienced positive growth, with a month-on-month increase of 3.6% and a year-on-year growth of 0.5%. This was a welcome development following a challenging period. However, when considering the performance over the first four months of 2023, there was a year-on-year decline of 1.8%. Several factors contributed to this decline, including a sluggish global recovery, stricter monetary policies, and decreased production orders.
The global economy's slower-than-expected rebound impacted various sectors, including manufacturing and production. The effects of the ongoing COVID-19 pandemic and associated restrictions continued to hinder economic activities worldwide. In addition, many countries implemented stricter monetary policies to control inflation and stabilize their respective economies. These tighter monetary measures often have short-term negative implications for industrial production.
Furthermore, reduced production orders from both domestic and international markets also played a role in the decline. Factors such as disrupted supply chains, fluctuating demand, and uncertainty in the business environment affected companies' decisions to place orders for goods and services. This decline in orders led to a decreased output in the industrial sector, further contributing to the negative year-on-year growth.
Shifting focus to the financial markets in Vietnam, the Hanoi index remained stable in April 2023, indicating relative resilience despite the challenges faced. However, the Ho Chi Minh index experienced a decline of 1.5%. This decline can be attributed to the overall market sentiment, investor caution, and the aforementioned global and economic factors affecting Vietnam's financial landscape.
Amidst these market conditions, our clients have achieved impressive returns over the long run. Since its launch, the Anh Thomas portfolio has delivered an overall return of 633.2%. This exceptional performance significantly outpaces the returns of both the Hanoi index (200.7%) and the Ho Chi Minh index (163.6%).
Anh Thomas's success can be attributed to our expertise in identifying investment opportunities, making sound investment decisions, and effectively managing risk.