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Private Equity

Investment Sentiment and Outlook Quarter 2, 2014

Vietnam Private Equity Quarter 2, 2014

This report is the 11th bi-annual report that Grant Thornton Vietnam has released looking at investment sentiment and outlook for the Private Equity sector in Vietnam. The results in this report are based upon survey responses provided by decision makers working in the Private Equity space. Respondents are located both in and outside Vietnam and are involved in Vietnam‟s Private Equity sector. In this study we have again sought to understand the current sentiments of investors in Vietnam towards the economy generally, their industry preferences and the impediments to investment. This survey was undertaken in May 2014.

Private Equity investment in Vietnam remains a significant driver behind Vietnam’s economic growth. The sentiment expressed by those operating in the Private Equity sector has an important impact on the economy as a whole, which this survey seeks to measure.

In our 11th survey on Private Equity sector carried out in the second quarter of 2014, the respondents have shown positive views toward Vietnam‟s economy. In terms of investment attractiveness, Vietnam is still selected as an attractive destination by the majority of the respondents (54%). 51% of them also said they would increase the allocation of investment funds to Vietnam in the next 12 months.

In this survey, even though quite equal attractiveness exists among every sector, some sectors are really standing out such as Retail, Food and Beverage and Real Estate/Property and Hospitality/ Leisure. In which, the Retail industry has made an impressive rise, surpassing the Food and Beverage industry, to become the most attractive sector for investment in Vietnam with 52% of respondents selecting this sector.

Regarding to the question “how to win a deal in Vietnam”, “Corporate Network” and “Sector Expertise” are considered as critical factors, replaced “Local Presence” as in the last survey. In reverse, “Difference in valuation expectation” continues to be the most popular deal breaker factor.

With an optimistic view of Vietnam‟s economy, we see many investors currently pay more attention to Private Equity sectors. They are ready to put additional resources in the market, and expect to have a better return in the long run.