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Private Equity

Maintaining growth: the challenge of managing investments in a young market

Vietnam Private Equity Report Quarter 4, 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 this 12th survey on the Private Equity sector carried out in the fourth quarter of 2014, respondents have shown significant increase in their positive views towards Vietnam's economy. There have been encouraging improvements compared to the prior survey results, both in terms of investment attractiveness rating, and the intention to maintain or even increase investment fund allocation to Vietnam, in the next 12 months, with responses by 64% and 87% of respondents respectively.

Education, Real Estate/Property, Food & Beverage, and Retail are, again, the leading sectors which were seen as especially attractive for investment.

Regarding the question of “how to win a deal in Vietnam”, “Reputation” and “Corporate Network” were considered the most critical factors. These choices reflect a minor change in outlook by investors, compared to earlier this year, where respondents selected “Sector Expertise” as the second most important factor. “Difference in valuation expectation” continued to be the most significant factor contributing to deal failure.

With an optimistic view of Vietnam‟s economy, we see many investors currently paying more attention to Private Equity sectors. They are ready to put additional resources in the market with an expectation of better long-term returns.