VinaLand Limited has announced its 16.8% return on net asset value for the 2008 calendar year was the top performance of any Vietnam-dedicated investment fund.

VinaCapital's AIM-quoted investment vehicle was established to target key growth segments within Vietnam's emerging real estate market.

According to data from LCF Edmond de Rothschild Securities, the 32 Vietnam funds' net asset values declined 38.7% on average in 2008. Vietnam property funds were the only sector with a positive average NAV return at 5.7%.

Within the property sector, VinaLand said it outperformed this average by a substantial margin. The Company began 2008 with an NAV of USD655m or USD1.31 per share, rising to USD766m or USD1.53 per share at 31 December 2008.

Don Lam, chief executive of VinaCapital and director at VinaLand, said: "Our strong performance in 2008 is due to three main factors: first, significant and continuing unrealised gains based on independent valuation reports; second, realised gains from the commencement of our strategy to divest from certain projects via co-investment and other forms of exit, and finally, the solid performance and income from our hospitality portfolio, which includes some of Vietnam's top hotels such as the Sofitel Metropole Hotel and Hilton Hanoi Opera Hotel.

"In addition, VNL performance benefited from the lack of debt at the fund level. It was a very difficult year for investment funds in Vietnam due to high inflation and currency concerns in the first half of the year, followed by the onset of the global financial crisis in the second half of 2008. Vietnam's stock market saw its benchmark index (the VN Index) decline by 65.9%.

"The sharp decline of most Vietnam funds in 2008 was painful for investors. But the real estate returns point to an undeniable fact - Vietnam is at the early stage of a long-term growth cycle that can be slowed but not stopped. We remain confident that long-term investors in Vietnam will be rewarded."