Foreign investors bullish on Vietnam prospects
Foreign investors bullish on Vietnam prospects
Nguyen Duc Tai was happily busier than usual last week as the Mobile World Company CEO took part in a high-profile Vietnam investment event in Ho Chi Minh City.
During the four-day networking event, attended by almost 400 guests, investors and speakers, his company, Vietnam’s largest mobile phone store chain, showcased itself to opportunity-seeking investors.
“The stock market has been on the up this year,” Tai said, adding that the company planned to list this June. He joined the Vietnam Access Day forum, held during March 18-21 to introduce his company to the participants.
The firm, with Best Buy International’s former CEO Robert Willet currently sitting on its board of directors, reported 2013 revenue of VND7.82 trillion ($372.4 million), a 25 per cent increase against 2012 with profits nearly doubling to VND250 billion ($11.9 million).
Mobile World was not the only company to introduce itself at Vietnam Access Day. The event, organised by Viet Capital Bank, Viet Capital Securities Company and Viet Capital Asset Management, also saw displays and presentations from Masan Group, property developer Nam Long, Bao Viet Holdings, Vietcombank, Eximbank, leading fertiliser producer PVFCCo., Hoang Anh Gia Lai, FPT, Hoa Sen Group, Traphaco and Vingroup.
Viet Capital chairwoman Nguyen Thanh Phuong said Vietnam Access Day was held mainly to connect international investors with companies in Vietnam. “Networking creates value,” she added.
The Vietnam Access Day event was also designed to provide a panorama of the Vietnamese economy, to help foreign investors evaluate the investment environment and market opportunities, as well as to connect capital with strong potential investments.
Outlining the panorama Dr. Nguyen Xuan Thanh, director of the Fulbright Economics Teaching Programme Vietnam said, “The crisis has been averted and the macroeconomic situation is improving with low inflation, stable exchange rates, and rising foreign exchange reserves.”
Optimistic investors
Rupert Clifton-Blight, investment director of Singapore’s Duxton Asset Management, running the DWS Vietnam Fund, told VIR that the fund had already invested $330 million into both listed and unlisted enterprises. “Yes, we’re bullish on the market,” he said. The fund’s primary investment objective is to seek long-term opportunities. Its holdings include blue chips such as Vinamilk - Vietnam’s largest dairy company, FPT and Hoa Phat Group as well as investments in unlisted businesses such as Anova Group. DWS, which started investing in Vietnam in 2006, invests only in Vietnam.
Andres Calderon, portfolio manager of Consilium Investment Management from the US said, “This is the first time I’ve been to Vietnam and I think there are many opportunities for us as foreign investors. Many friends of mine have invested here. I’ll be back again and again to catch the opportunities.” Calderon said his company was a global emerging markets investment management firm with a capacity limit of $350 million for frontier market equity and a capacity limit of $1 billion for emerging market small cap equity.
Singapore’s Temasek Holdings also pledged to continue investing into areas of interest, the firm’s Hanoi representative office director Vu Thi Thu Le commented to VIR. Declining to specify which areas, she did say they were highly competitive companies in fast growing sectors. “However, there are not many good shares to invest in now. We’re hoping the Vietnamese government’s will to equitise state-owned enterprises will release more strong products into the market.”
Also from Singapore, asset management firm Hansabay was looking at the consumer goods sector in Vietnam, said CEO Florian Weddinger. Hansabay has thus far only bought fund certificates from funds already investing in Vietnam, but it is looking for opportunities to buy shares of local companies.
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