World-Leading Investment Fund Aims to Expand Operations in Vietnam

With a total asset value of up to US$528 billion, Kohlberg Kravis Roberts (KKR), a US global investment fund, assessed Vietnam as an attractive investment destination and affirmed that it would continue to expand its presence in the country.

Prime Minister Pham Minh Chinh (right) and David Petraeus, Partner at the Kohlberg Kravis Roberts (KKR) global investment firm and Chairman of the KKR Global Institute

After Vietnam and the United States became Comprehensive Strategic Partners, bilateral economic and trade relations continued to develop sustainably. Currently, over the past 20 years, the United States has been Vietnam's largest export market and Vietnam has become the 7th largest trading partner of the United States and the largest in the ASEAN region.

The US’s direct investment in Vietnam was estimated at US$11.94 billion with over 1,400 projects, ranking 11th among countries and territories investing in Vietnam.

Many companies and investment funds have invested in Vietnam, including KKR, one of the world's leading investment funds. It has a total asset value of up to US$528 billion. It is one of the largest private equity funds in the world with 33 offices worldwide. It has completed more than 280 equity deals in companies with a total value of US$545 billion.

KKR has been popular in Vietnam since April 2011 when this fund management company made its first investment deal of US$159 million in Masan Consumer. At that time, this was the largest private equity investment in Vietnam. In 2013, KKR invested an additional US$200 million in Masan, setting a new investment record. After that, this investment fund continued to make new investments in Masan.

To date, KKR has invested more than US$2 billion in Vietnam through equity deals in Vietnamese firms like Masan, Vinhomes, Equest, KiotViet, and most recently Medical Saigon Group (MSG). KKR's strategic investments have helped Vietnamese companies reach the global market such as Masan and EQuest Education Group.

During his second visit to Vietnam and meeting with the Prime Minister, Mr. David Petraeus, Partner at KKR, expressed his desire to strengthen cooperation between the two sides.

Mr. David Petraeus highly appreciated the factors that make Vietnam an “extremely attractive” investment place, such as political stability, good security and order, rapidly improved infrastructure, peaceful relations, friendship and cooperation with other countries, high regards for education and training, English teaching as a second language in addition to many advantages over neighboring countries. Many investors have recognized these factors and more US investors will come to Vietnam.

Understanding the potential for huge bilateral economic, trade and investment cooperation, especially Vietnam’s fast room for US investment expansion, Prime Minister Pham Minh Chinh expected US investors to make more new investments and expand their investments in Vietnam.

He suggested that KKR continue investment expansion and cooperation with Vietnamese companies, especially in emerging industries like artificial intelligence, semiconductor, innovative startup ecosystem, digital transformation and renewable energy.

At the same time, Prime Minister Chinh suggested KKR connect Vietnam with its partners around the world to seek opportunities, expand cooperation and investment in Vietnam, and turn opportunities into specific projects; advise policies to help Vietnam take advantage of development opportunities, promote national strength, support Vietnam in building an independent and resilient economy associated with active, intensive, substantive and effective international integration.

Mr. David Petraeus said that KKR will expand its investments in Vietnam and affirmed his commitment to supporting cooperation, particularly on initiatives outlined by the Prime Minister.

By Duy Anh, Vietnam Business Forum