The Mekong Enterprise Fund (MEF) has invested US$1.55 million into the Goldsun Joint Stock Company, a Hanoi-based kitchenware and carton-packing firm.
Chris Freund, managing director of fund management company Mekong Capital, said this is the final investment of the fund because it has spent all its capital of US$18.5 million to invest in 10 projects in Vietnam since its debut in April 2002.
Goldsun general director Pham Cao Vinh said the partnership with the fund would help his company expand operations and become the leading Vietnamese company in carton packing and kitchenware.
Goldsun now provides a complete range of cardboard cartons, focusing on high-quality offset printed cartons used for the packing of consumer products such as electronics, household, and food products. It also produces and distributes metal kitchenware, including gas stoves, stainless steel pans, and other kitchen utensils.
The firm attained a market share of 80 per cent in kitchenware sales in the northern provinces in 2004.
The Mekong Enterprise Fund is a private equity fund focusing on investments in private businesses that have excellent management and a strong commitment to long-term success in Vietnam, Laos, and Cambodia.
Freund said that Goldsun has quickly established itself as one of the top private companies in northern Vietnam with a pro-active business culture, high commitment to quality, well-organized management structure, and clear vision and strategy.
“This will also lay the foundation for future investment in Hanoi for our subsequent fund,” he said.
Mekong Capital is now mobilizing capital from financial and banking institutions in Europe and the US to set up another fund, Mekong Enterprise Fund 2, expected to operate in the first quarter of 2006, Freund said.
The new fund will have investment capital of US$40 million with a very similar strategy to the first one, which focuses mainly on private enterprises in Vietnam.
The US$18.5-million MEF is a private equity fund focusing on equity investment in entrepreneurial businesses, particularly in manufacturing.
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