VET gathered opinions from foreign investors about Vietnam’s private equity (PE) market. Mr. Chris Freund, CEO of Mekong Capital Vietnam’s private equity market has been stable for many years. There are some private equity funds like Mekong Capital that have funds dedicated to Vietnam and some regional / global private equity funds like TPG who are making private equity investments here too. It has been this way for more than ten years. I haven’t noticed any significant changes in the last ten years. Private equity funds invest in most countries around the world. The amount of private equity investment isn’t particularly sensitive to macroeconomic trends. Investors in private equity funds must commit their capital to those funds for ten plus years, so private equity capital is long-term by nature. Every year the performance of our investee companies gets better and better. We utilize a value creation framework called Vision Driven Investing and we keep getting more effective at how we apply it. Vision Driven Investing has 14 components to it and works really well when our investee companies fully apply it. MobileWorld (MWG) is a good example of a company that applied most aspects of Vision Driven Investing. The hardest part is building a strong culture and management team, but when companies successfully do that the improvement in performance is huge. I don’t think there are any significant regulatory obstacles to private equity investment in Vietnam. The biggest obstacle might be certain limitations on foreign investment by sector, which probably… [Read full story]
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