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VietNamNews

Private equity draws investors to Viet Nam

Update: July, 12/2014 - 10:16

HCM CITY (VNS) — Viet Nam remains an attractive destination for private-equity investors, many of whom plan to increase their investment in the country, according to Grant Thornton Vietnam.

Speaking at a seminar in HCM City on Wednesday, Kenneth Atkinson, executive chairman of the auditing and consulting firm, said in his company's bi-annual report on investment sentiment in private-equity in Viet Nam, that 51 per cent of respondents said the country was more attractive than Myanmar or Indonesia.

They also said they would increase the allocation of funds to Viet Nam in the next 12 months (starting in July).

Positive outlook

About 48 per cent nurture a positive outlook for Viet Nam's economy over the next 12 months, compared to 43 per cent in the fourth quarter of last year and 27 per cent in 2012's Q2.

The retail sector was named the most attractive by 52 per cent, followed by food and beverages (37 per cent). Hospitality and leisure and property ranked third at 27 per cent.

"Although Viet Nam's economy still faces many challenges, there has been an improvement in macro-economic stability and some positive signals that its economy has begun to recover," Atkinson said, adding that foreign capital is expected to continue to flow into the country through merger and acquisition activities in the coming years.

Pham Phu Ngoc Trai, president of GIBC (Global Integration Business Consultants), said to maximise equity value proper restructuring is required to create the best value for businesses.

"It is so obvious that restructuring is an essential and urgent matter given the current issues of inconsistent economic scenarios, constant changing of laws and tax policies, rapid development of technologies, and increasing competitive pressures."

They are all happening simultaneously despite the fact that businesses still have to face internal risks due to weak management and inefficient production, he said.

"They should consider their current conditions to decide how to restructure human resources and finance among others."

He also suggested re-identifying visions and goals based on market conditions before planning actual operations. —VNS

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