5:23:47 PM | 4/22/2009
Vietnamese unlisted companies are attracting both local and foreign investments but the difficulty in borrowing from banks poses a hurdle to private equity expansion, a survey by Grant Thorton Vietnam has said.
The market research, namely “Private Equity – Vietnam Investment Environment and Outlook” said 67 per cent of responders rated Vietnam as more attractive than other destination like China and Thailand.
Forty two percent affirmed that they will continue raising their investment proportion in Vietnam and its private equity market, and only 8 per cent will cut investment in the country this year.
The survey done in March polled 169 participants including both local and foreign private equity investment firms and advisors to the industry.
“We can see many reasons supporting the investment attractiveness of Vietnam, while other competitive economies in the region such as China and Thailand face troubles,” said Mathew Lourey, Grant Thornton’s corporate finance director.
However, the high dependence on bank debt for competing Private Equity investments is lowering the number of investment deal, Grant Thornton Vietnam Managing Director Ken Atkison said.
The government has recently decided to raise the foreign holding in local unlisted companies to 49 per cent from current 30 per cent with effect from June 1. This is considered as the move to heat up the over-the-counter market or the Upcom market in the coming time. (Vietnam Economic Times, Young People)
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