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Private Equity

Look out for steady investment growth

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 this 15th survey on the Private Equity sector carried out in July 2016, the respondents with positive view towards Vietnam’s economy, while still accounts for the majority (55%), has declined by 6%, with the corresponding increase in neutral views. Consistent with this decline, the  participants who anticipate an increase the level of investment activities to increase in Vietnam in the next 12 months, has gone down to 72%, a reduction by 14% compared to 6 months ago.

In regard to sources of transactions, it is notable that Private/Family owned entities have came back to be the most significant source of deals, as agreed by 33% of the participants.

The Retail sector and the Food and Beverage (F&B) sector continue to be considered the two most attractive sectors for Private Equity transactions in our recent surveys. It is also highlighted that Private Equity investors are increasingly interested in the Education sector, whose rating of "very attractive" increased by 16% compared to our last survey.

The survey emphasises that “Economic growth” and “Sector specific opportunities” continued to be critical for deal success. "Difference in valuation expectations" and “non-disclosure of material items at the appropriate time” topped the list of critical factors contributing to deal failure.

With an optimistic view of Vietnam economy, we are looking forward to steady growth in Private Equity investment in Vietnam in the coming 12 months.

Look out for steady investment growth