Foreign Funds Expanding Investment in Vietnam Shares

Foreign fund management companies are speeding up plans to raise funds for further investment into Vietnam shares to take opportunities of post-crisis period and economic growth in Vietnam in 2010, analysts said.

 

Finance, retail, property, education and healthcare sectors are on close watch of both foreign and domestic funds.

 

VinaCapital and Dragon Capital, the two largest and most experienced fund managers in Vietnam, is raising money for a property fund and an energy fund, respectively. Saigon Asset Management Corp. (SAM) will set up “Smart Money” fund.

 

Russia’s Bank for Foreign Trade (VTB) partnered with the Bank for Investment and Development of Vietnam (BIDV) to establish a $500-million fund to invest in tourism, property and energy in Vietnam and Indochinese countries. They will mobilize at least $100 million in 2010 first.

 

VietFund Management JSC (VFM) will start its fifth unit, Vietnam Active Fund, worth VND300 billion by the end of March. Deputy Chief Executive Officer Pham Khanh Lynh said the current post-crisis period is a good time to launch a new fund.

 

Vietnam’s economy expanded 5.32% in 2009 amid the global economic downturn and it is projected to grow 6.5% this year.

 

Seven foreign funds first entered the Vietnam market in 1990s, with total investment of $700 million. Currently, the country has more than 100 local and foreign funds.

 

Experts said nearly 100 financial investment institutions are operating worldwide, managing a combined $100 billion. (Investment)