CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / News
Warburg Pincus: "Vietnam a big draw for global investor"
Ngoc Thuy 10:37, 2018/03/23
Warburg Pincus is relishing its opportunities in Vietnam as the economy grows and capital markets develop, said Jeffrey Perlman, Southeast Asia chief of the private equity firm to Reuters.
"It's a market that we think there's a lot of opportunity in," quoted Perlman in an interview with Reuters on March 22. "Four, five years ago, even in Vietnam there wasn't an understanding of what was private equity and what it will do to businesses."
 
Warburg Pincus is relishing its opportunities in Vietnam.
Warburg Pincus is relishing its opportunities in Vietnam.
Vietnam's emergence as a large manufacturing destination next to China helped the Southeast Asian nation's economy grow at 6.8% last year, the strongest since 2010, Reuters reported.The growth is rapidly building up a huge middle class that is boosting consumer spending in a country of about 100 million.
Its stock index VNI has risen 20% this year, the best performance in Southeast Asia, after surging by 50% last year.
Perlman said the growth in Vietnam's capital markets to US$200 billion in value from some US$35 billion five years ago, was a big draw for global investors, and he expected local regulators to bring in more reforms to develop the markets.
Warburg is the largest private equity investor in Vietnam, which has also seen sizeable investments from rivals KKR & Co. and TPG.
The firm, with US$40 billion assets under management, invested US$300 million in Vincom Retail, the largest shopping mall operator in the country which is also a subsidiary of domestic property giant Vingroup. Further, its highly successful $740-million listing on the Ho Chi Minh Stock Exchange last November was the largest-ever IPO in Vietnam, helping Warbug more than double its investment.
This month, Warburg announced a US$370 million-investment in Vietnam's Techcombank, marking the largest-ever private equity investment in Vietnam to day, 
Perlman cited the forecasted huge growth as reason behind the firm recent investment, "two-thirds of the population do not have a bank account, while more than 90% do not have access to credit cards."
Though company valuations were high across many markets globally, Vietnam's strong growth prospects stood out. "You have an ability to potentially pay a fuller price when there's actually growth underlying the investment," Perlman said. He did not specify how much more Warburg plans to invest in the country or identify potential targets.
Warburg Pincus started investing in Southeast Asia in 2013 with Vietnam as its maiden market. Since then, the Private equity firm has invested in seven companies in the region, including Vincom Retail, Lodgis Hospitality, ARA Asset Management, Go-Jek, NWP Retail and Trax. 
Comments
Other news
18:03, 2025/02/22
Vietnam attracts South Korean tech investment at SEMICON Korea 2025
The event provided a platform for Vietnam to showcase its semiconductor potential and reaffirm its commitment to developing high-tech industries and strengthening international cooperation.
16:46, 2025/02/20
Swedish group plans US$1 billion investment in Binh Dinh recycling plant
By creating a large number of jobs and promoting a green economy, the initiative is important in establishing Vietnam as a global hub for the circular textile sector.
10:52, 2025/02/13
Samsung plans to invest in AI, semiconductors in Vietnam
Vietnam will continue improving its investment environment and driving strategic breakthroughs in order to usher in a new era of economic development.
17:20, 2025/02/07
Vietnam's data center construction costs among the lowest in Asia Pacific
The country has a lot of potential to become one of the most important data markets in the region.
21:05, 2025/02/03
Bright prospects for FDI inflows into Vietnam in 2025
Market size, growth potential, low labor costs, and stable political and social conditions continue to be Vietnam’s selling points in attracting foreign investors.
10:57, 2025/01/30
Foreign companies confirm investment expansion in Vietnam in 2025
Some foreign firms are optimistic about Vietnam's economic prospects in 2025 and plan to expand investment, focusing on sustainability across sectors.