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

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
12:23, 2024/04/08
US-based Rosen Partner to invest in world-class entertainment complex projects in Vietnam
The project is expected to crystallize and showcase Vietnam's unique cultural values to the world.
15:07, 2024/03/13
Foreign capital set to dominate Vietnam’s M&A landscape
The positive trend of foreign capital in the M&A market this year follows the momentum of 2023, where the top five largest deals involved foreign investors.
19:51, 2024/03/04
Samsung to invest US$1 billion annually in Vietnam
Samsung's R&D center currently employs 2,400 engineers, with Vietnamese engineers playing a crucial role in researching AI features for the new Galaxy S24 phone series.
15:05, 2024/02/29
Thai bank acquires Vietnamese finance company
Thailand's fourth-largest bank has agreed to acquire all the equity of Home Credit Vietnam for US$865 million.
14:08, 2024/01/27
Vietnam appreciates support from int’l friends in nation-building: PM
The goal is to develop Vietnam's economy and become a regional powerhouse in Asia.
15:18, 2024/01/20
Vietnam, Hungary call for stronger economic ties
Leaders from both sides also reaffirmed their commitment to creating a "peace of mind" investment environment for investors.