Vietnam growing in appeal among global investors

May 30, 2017 | 08:47
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Vietnam’s ecosystem possesses a lot of potential for investment, especially because of its political stability, Mr. Joshua I. Chung, Vice President, M&A and Sponsor Finance at Sumitomo Mitsui Banking Corporation, told the “Private Equity & Venture Forum Vietnam 2017” organized by the Asian Venture Capital Journal (AVCJ) in Ho Chi Minh City recently.

The first event of its kind in Vietnam, the AVCJ Vietnam Forum offered in-depth analysis of the risks and rewards presented to private investors looking to commit capital to the growing economy of Vietnam.

“There are a lot of opportunities in Vietnam now but challenges are also ahead,” Mr. Andy Ho, Chief Investment Officer at VinaCapital, told the forum. He added that industries seeing the most activity are logistics, media, technology, and FinTech.

“Vietnam is now more fiercely competitive, but enterprises must coordinate with each other based on a win-win situation in order to survive,” he said.

Among the ten ASEAN countries, according to global investors, Vietnam, behind Singapore, has the most open economy. It is involved in a range of bilateral and multilateral free trade agreements with the US, the EU, and other leading economies.

Vietnam exports in excess of $1 billion to nearly 30 markets, according to Mr. Tran Anh Dung, Chairman of the Thien Phu Energy Investment JSC.

He agreed that political stability is a key factor in attracting investment, among others, such as its geopolitical location.

With strong macroeconomic fundamentals, a stable political environment, and investment reforms aimed at attracting foreign investment, Vietnam has become a destination of choice in Southeast Asia.

While there is an active local general partner (GP) community already in place, global and regional funds are increasing their interest and, therefore, helping the domestic private equity ecosystem gain momentum and compete with other Asian markets.

The forum provided a platform for attendees to showcase the latest alternative investment opportunities, share strategies for navigating the Vietnamese market, while networking with a diverse audience of limited partners (LPs), GPs, and service providers.

This will be among the largest investment forums held in Vietnam in 2017, and included six topics: Vietnam’s place in an Asian private equity portfolio; Examining the opportunities for M&A and cross-border deals; Real estate opportunities and challenges; Venture capital (VC) targeting the Vietnamese consumer story; The role of technology in Vietnam’s new economy; and LPs perspective of Vietnam.

The forum helped global investors gain a positive outlook on investment opportunities in Vietnam, in particular being persuaded by global theoretical points and enlightened by the country’s history and culture.

This will definitely open up many great investment opportunities for Vietnam in the years ahead.

AVCJ has been the leading source of information on private equity and venture capital activities in Asia since its establishment in 1987.

It is part of the Mergermarket Group, which also includes Mergermarket, Debtwire, Unquote and the Inframation Group.

VN Economic Times

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