“Investors showed strong interest in the Vietnam market, but, as they are interested in the long term, they are holding off for positive economic signals,” said Don Lam, VinaCapital CEO, at a press briefing in Ho Chi Minh City on March 9 in recent meetings with foreign investors.
VinaCapital is a leader in asset and investment management and real estate development in Vietnam, running a property portfolio worth over US$1.7 billion in total.
VinaCapital would not invest in office building projects in the coming time, as the office market has witnessed abundant supply and rents are falling, but hospitality is a segment the group will continue to invest in as it sees potential growth, thanks to the increasing number of international arrivals, Don Lam said.
Lam said foreign investors would further investment in retail projects, given strong demand in the sector. Besides a project to join the retail market this year, the fund manager was mulling three more retail projects in the country’s main cities in the coming time.
This fund will also continue to invest in the trade centre project. In addition, the commercial project in Hochiminh City is preparing to participate in the market this year, and VinaCapital expected to invest in three more projects in major cities in the future.
Andy Ho, Executive Manager of VinaCapital, unveiled a plan to attract US$300-500 million from foreign investors to establish two more member funds, VOF II and VinaLand II, to further invest in local companies and the property market. In 2011, the group also expanded the operation of VinaSecurities after signing an agreement with Macquarie Capital. It has also inaugurated VictoryCapital company in Phnom Penh , Cambodia , to help Vietnamese companies interested in Cambodia , besides its main goal of guiding investment there.
Alan Pham, head economist of VinaSecurities, said 2010 was a relatively successful year for Vietnam’s economy despite its double-digit inflation. Recently, Vietnam’s Government has for the first time issued comprehensive monetary policies, including fiscal targets and foreign exchange rates to curb inflation. These policies are expected to work in the near future, he added.
Don Lam said VinaCapital Group is working on a plan to raise capital from overseas for its two new funds in a move to further its investment in local companies and the property market in Vietnam in the years to come.
The fund manager, active in asset management, investment banking and real estate, is seen as the largest investor in Vietnam’s real estate market, focusing on the mid-range residential market and building new townships in the country.
VinaCapital recently opened VictoryCapital in Cambodia's capital city of Phnom Penh to source and manage VinaCapital's investments in that country, as well as help Vietnamese companies that wish to invest there.
Last year, the group launched two new brands, including VinaLiving and VinaProjects for property development and management. VinaCapital invests heavily in real estate projects, targeting the intermediate market segment and urban areas, such as: Dai Phuoc Lotus (Dong Nai), My Gia (Nha Trang), Ocean Villas and the Danang World Trade Centre (Da Nang), and The Garland (HCMC).
Huong Ly
Vietnamese
