June 19, 2022
Encouraging Vietnam Business By Early Investment
Vietnam Investment Group (VIG) can be understood as a private equity firm that focuses on large-scale businesses in Vietnam. Vietnam Investment Group (VIG) provides a lot of early-stage and expansion capital to industry-leading companies and works with their management team to grow market share and margins and improve operations, thus creating shareholder value.
Vietnam Investment Group (VIG) seeks to add value to portfolio companies through assisting with strategy development, recruiting, operations, bringing leading international partners as co-investors, financial restructuring and/or industry consolidation.
With US$500 Million under management across 3 funds, Vietnam Investment Group (VIG) looks to hold a significant minority stake in investee companies. We are willing to take a majority stake where we have industry expertise (via operating partners or co-investors) and are able to add significant value. Our investment can take the form straight equity, performance-linked equity or convertible debt. Vietnam Investment Group (VIG)targets an investment horizon of 5 to 6 years.
Vietnam has become one of the booming markets in Southeast Asia over the last 10 years attracting many talented investors to start new businesses or invest in this country. However, numerous articles indicate that early-stage businesses experience greater challenges to grow due to insufficient access to relevant financial and technical support and lacking sufficient ecosystem. The community of investors play a critical role in expanding the pipeline of investible businesses by providing early-stage ventures with essential resources including capital to bridge the funding gap and by sharing their expertise and networks to unlock business opportunities that facilitate growth.
Number 1 Dragon Capital Fund
Founded in 1994 with a team of six and $18mn AUM, Dragon Capital has since developed into an integrated investment platform focused on Vietnam and other Southeast Asian emerging markets and is Vietnam’s longest established independent asset manager with $6bn AUM (as of 31 Dec 2021 – unaudited), primarily invested in listed equities, but with additional in-house capability in private equity, clean-tech, fixed income and real estate.
For over two decades, Dragon Capital has consistently delivered on behalf of our investors, partners and stakeholders.
We are also dedicated to improving corporate governance, contributing to society, and promoting sustainable development in the countries where we invest.
Number 2 Vina Capital
VinaCapital Fund Management Joint-Stock Company (“VCFM”) is one of the most experienced asset management companies in Vietnam. VCFM was founded in 2012 as a subsidiary of VinaCapital Group and operated under the name of VinaWealth Fund Management Company until July 2017. VCFM provides investment management and investment advisory services for both domestic and international investors/clients. Our products include Vietnam-domiciled funds, foreign-domiciled funds, managed accounts and advisory services. VCFM is licensed and regulated by the State Securities Commission of Vietnam (SSC).
VCFM is 100% owned by VinaCapital Group, one of Vietnam’s most experienced asset management and real estate development companies, with over USD 4.0 billion in assets under management in Vietnam. VinaCapital has 19 years of experience in Vietnam, and currently manage funds across multiple asset classes, including public and private equity, fixed income, real estate, venture capital, and managed accounts.
Number 3 Mekong Capital
In the early years, Mekong Capital Vietnam Investment applied value-addition programs focusing on best practices such as Six Sigma, Lean Manufacturing, manuals of best practices, etc. We had lots of ideas that we thought would help the investee companies. However, no matter how great our ideas were, this had little or no impact.
In 2009, concurrent with Mekong Capital’s own transformation, we developed a new Vision Driven Investing framework (VDI). VDI requires that our partnership with every investee company begins with their own committed vision for their future. Starting from their committed vision, the VDI framework is essentially 15 perspectives to look from. Each company can continuously discover what works for them towards fulfilling their breakthrough vision.
Japan
The number of projects that the land of the rising sun invests in Vietnam is: 3,117 with a total registered investment capital of 39.8 billion USD. The names of many Japanese giants present in Vietnam such as Honda, Toyota... have contributed significantly to the economic market of Vietnam. In addition, Aeon Group has built Aeon Mall in the 3 largest cities in Vietnam.
Korea
Korea has 5,364 valid projects with a total registered investment capital of 48.6 billion USD. Each FDI project of this country averaged 9.3 million USD. Korean FDI enterprises such as LG, Samsung, Lotte have contributed a lot to the development of Vietnam.
Taiwan
Taiwan is one of the countries with the most investment capital in Vietnam. Accordingly, Taiwan has poured into Vietnam 31.7 billion USD, with a total of 2,525 projects. Over 10/21 economic sectors of our country are invested by Taiwan. In which, the processing and manufacturing industry accounts for more than 90% of the total investment capital.
Virgin Islands (BVI)
BVI has 654 valid projects, total investment in Vietnam is nearly 20 billion USD. Companies such as CJ CGV Vietnam Co., Ltd., Worldon Vietnam Co., Ltd., Vinacapital Shopping Center Co., Ltd. are all major projects of BVI.
Singapore
By the end of 2017, the lion island nation of Singapore had 1,643 investment projects in Vietnam. Total investment capital is: 38 billion USD and Singapore's FDI is not small. Singapore's FDI has been poured into 18/21 economic sectors of Vietnam. Most concentrated in industries such as processing industry, real estate business.
USA
Total registered US investment capital: 10.9 billion USD. Currently, the United States has expanded its investment in Vietnam. The big US companies such as Intel, General Electric, Microsoft, Coca-Cola, AIG... have contributed a lot to Vietnam's economy.
China
As of 2016, China's total investment in Vietnam is 10.7 billion USD, with 1,445 valid projects. Therefore, China is considered the country with the most investment capital in Vietnam. China's investment fields are very diverse such as: Investment in real estate, finance and transport infrastructure. China invests in the form of direct (100% capital) and BOT, BT, BTO contracts...
Hong Kong
Number of projects: 1,043 Total registered investment capital: 16.6 billion USD As of 2017, Hong Kong has invested in 17/21 sectors in Vietnam's economic sub-sector system. Processing and manufacturing industry with 502 projects accounted for 7.6 billion USD of total investment capital. Hai Duong is the leading province in attracting FDI from Hong Kong with 38 projects accounting for 3.08 billion USD of total capital.
Malaysia
A neighboring country of Vietnam that is the country with the most investment capital in Vietnam is Malaysia. Malaysia is also considered as the country that invests the most in Vietnam. Ranked second in terms of FDI inflows into Vietnam. With 547 valid projects and total registered investment capital reaching 13.9 billion USD. Although in terms of total capital as well as the number of projects, both lost to Singapore, but the country's FDI capital achieved certain results.
Thailand
According to data from the Foreign Investment Department, Thailand's FDI reached 9 billion USD. In which, there are 459 investment projects in Vietnam by the end of 2017. The Thai giants consider the processing and manufacturing industry to be the most fertile market. With the current development momentum, Vietnam will continue to receive a lot of investment from Thailand. And with the participation in the EVFTA agreement signed with the European Union, in the future, Vietnam will attract investment capital from these countries.
If you are finding a guide to set up a business or invest in Vietnam, visit here: Setting Up A Business in Vietnam as A Foreigner
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