The annual general meetings of Dragon Capital-managed investment funds Vietnam Enterprise Investments Limited (VEIL) and Vietnam Growth Fund (VGF) voted against the winding-up of the funds.

All resolutions were voted upon in line with the recommendations of the boards, including resolutions against the winding-up of the two funds, and votes to extend the interval between ‘wind–up’ votes from two to three years for VGF and from two to five years for VEIL.

VEIL chairman, Hartmut Giesecke, said: "This vote of continuation and the extension of the interval from two to five years clearly demonstrates that the shareholders are encouraged by the prospects for Vietnam.”

VGF chairman, Marc Faber said: "We have striven to align ourselves with the objectives of our shareholders, and we are pleased that they support the fund in pursuing a long term investment strategy.”

Dragon Capital CEO Dominic Scriven said the results reflect confidence in both the ability of Dragon Capital as a manager and in Vietnam as an investment destination.

"They recognise that this government has improved macro-economic management and demonstrated a commitment to move forward on difficult policies,” he said.

"At present, Vietnam is among the cheapest markets in the region; a steadfast adherence to implementing reforms is expected to solidify market fundamentals and lift equity valuations,” he added.

Vietnam-focused fund management company Saigon Asset Management (SAM) also got foreign shareholders’ thumbs-up to continue its two funds in Vietnam.

"We are delighted by the support of our shareholders for the continuation of Vietnam Equity Holding (VEH) and Vietnam Property Holding (VPH),” said Louis Nguyen, executive director of Saigon Asset Management .

A healthy chunk of shareholders approved the continuation, with VEH receiving 65 per cent of the 75 per cent quorum and VPH receiving 67 per cent of the a 73 per cent quorum.

Nguyen said despite the current challenging macro environment, the bright long-term prospects for Vietnam were behind the decision.

Nguyen added SAM aimed to maximise returns to investors, narrow discounts and provide clear exit routes for its shareholders.

"In addition, we proposed the conversion plan of VEH and VPH to a open-ended fund format in early 2014 in order to provide flexibility for investors to invest in the fund when the Vietnam market rebounds,” said Nguyen.

"During the past five years, VEH has outperformed its peers in the Vietnam market based on net asset value. Also, since inception VEH has significantly outperformed the Vietnam Index.”

Launched in 2007, VEH and VPH are closed-end investment funds listed on the Frankfurt Stock Exchange and Xetra with initial net asset values of approximately $75 million and $50 million, respectively.