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Company SpecificsFounded: 2003
Headquarters: 17th Floor, Sun Wah Tower, Nguyen Hue Bldv. District 1, Ho Chi Minh City, Vietnam
Ownership Structure: Privately held company
Products and Services: Financial services including securities, real estate, and other investments
Customers: Investors both inside and outside of Vietnam
HostsMs. Thai Nguyen Thuan, Director of Strategy, VinaCapital
Mr. Hoang Trung, Director, DFJ VinaCapital
VinaCapital Investment Management
VinaCapital Investment Management comprises the following three primary funds:
Vietnam Opportunity Fund
Vietnam Infrastructure Ltd.
The Vietnam Opportunity Fund has a medium to long term (3-5 year) focus and has the largest market cap of the three funds. As of September 1, 2008, the market cap of this fund is the equivalent of $782 million dollars. It has a sector focus on expansion capital for early to mid stage companies as well as assets it views as undervalued.
The VinaLand Fund has an objective to provide Shareholders an attractive level of income and potential capital growth by investing mainly in Vietnamese property and development projects. Its primary focus is in Ho Chi Minh, with a secondary focus in Hanoi and leisure locations such as Da Nang.
The Vietnam Infrastructure Fund holds debts, equity, and hybrid instruments in unquoted companies that hold, develop, or operate significant Vietnamese infrastructure assets. Its key investment areas are operating projects, distressed or stalled projects, and greenfield development sites. Its asset classes focus on the energy, transport, water, and telecom sectors.
VinaCapital Real Estate, Ltd.
VinaCapital Real Estate provides strategic property investment, development services, project management coordination, property financing and fund raising, and asset management services. It ensures that the property development is taken from concept to completion. It does this by coordinating the legal, financial, licensing, and construction issues.
VinaSecurities is a newly formed venture for VinaCapital. It offers brokerage and investment banking products as well as corporate financial services. These services are provided both at an institutional level as well as to individuals with high net wealth. It is one of the 1st international-standard brokers in Vietnam and is the only Vietnamese broker publishing international-standard research covering both sectors and individual companies.
DFJ VinaCapital is a US-based $25 million venture capital fund that is jointly managed by VinaCapital and Draper Fisher Jurvetson (DFJ). It aims to invest in Vietnam’s emerging technology companies and companies going through privatization. This joint venture has senior executives in both Vietnam and Silicon Valley.
Key TakeawaysTimes of uncertainty bring great opportunity
Vietnam’s economy and stock market has been in a tailspin during the second half of 2008. The stock market has dropped as much as 60% during the year. In order to bring the economy back under control, the government increased interest rates to over 20%. During this time of uncertainty, VinaCapital chose to maintain its funds. It even saw this as an opportunity to launch a new fixed-income fund to capitalize on the high interest rates.
Business and management practices in Vietnam are still evolving
When Vietnam first liberalized its economy, a wave of expatriates brought in their specific expertise from across the world. A second wave, several years later, brought the “Viet Kieu”, or Vietnamese living overseas, back to Vietnam. Combinations of these two classes are commonly found in senior management, including VinaCapital’s. They tend to have been schooled overseas and bring a wide range of experiences. There is not currently an abundant source of locally educated Vietnamese for these positions, but availability is continuing to improve.
In Vietnam the Boy Scott Motto applies: "Be prepared"
We spoke to VinaCapital briefly about the challenges that come with perceived corruption in Vietnam and learned that the first step to dealing with it is to know it exists. But a business person has to deal with more than corruption in Vietnam. We realized preparation for the rapidly changing weather patterns is also required, as a number of our group got caught in a torrential downpour and had to endure the entire meeting in soaking wet clothes.
Posted by: K. Philippe
VinaCapital's offices are located in the distinctive Sun Wah Tower.
Some class members got caught in a sudden torrential downpour on the way to VinaCapital.
Three VinaCapital executives addressed us in this boardroom.
Our Professors thanked our hosts for the presentation and other assistance in Vietnam.