|
New cash flow seeking investment opportunities
Two contradictory opinions are both prevailing: investors should withdraw from the market; investors should seek new investment opportunities. It seems that foreign investors are leaning towards the latter.
Managing Director of Dragon Capital Fund Management Company Dominic Scriven said that in the last two years, Dragon Capital focused on restructuring its investment portfolio. In 2007, Dragon Capital was one of the few companies which did not raise new funds. However, its strategy has changed now.
There are many opportunities for Dragon Capital, and if investors advocate Dragon Capital’s investments, it will focus on familiar companies which have long-term, good development strategies. The investments will focus on three main markets, shares, bonds and real estate.
A $250mil investment fund, which raised funds in Japan and disbursed all the capital, is planning to set up a new fund. In early June 2008, in a talk with local press agencies on the sideline of a big conference, the director of the fund expressed his worries about Vietnam’s economy. However, the director himself gave another viewpoint when he met local reporters again in Hanoi.
He said that economic policies are going on the right track, and the capability of the State Bank of Vietnam of stabilising the exchange rate has persuaded investors. What foreign investors are awaiting now are bank interest rate decreases and improved liquidity of the national economy.
The director said that some new investment funds of Singaporean and South Korean investors and some other Asian countries are seeking opportunities in Vietnam. They especially are eyeing the IPOs of big corporations to be held in 2008.
According to the director, it would be unreasonable to conclude that foreign investors are leaving when relying on the news that foreign investors sold more than purchased in the last time. He affirmed that it is now very difficult to purchase good share items.
Pham Thanh Sang, Investment Director of Aureos Capital Rep Office, said that the fund mostly raises funds from foreign institutions like ADB or British and Dutch banks to make investments in Southeast Asian countries, including Vietnam.
Aureos Capital is injecting money in unlisted companies which are expected to have high growth rates.
The said financial institutions plan to inject $350-400mil in Vietnam, he said, adding that the current investment market proves to be very attractive. As the bank interest rates are overly high, businesses find it hard to locate capital, and they tend to seek capital from funds.
Meanwhile, some investment funds say that their investors are still cautious when injecting money in Vietnam. The representative of a fund said that only several tens of millions of dollars have been raised of the planned $300mil. A consultancy firm said that several funds which have been in Vietnam for a long tome have asked the firm to seek foreign partners to purchase their investments in Vietnam.
The director of a fund management fund had a meeting with foreign investors in Hong Kong in June, and said that what he heard from the meeting was that investors wanted to know if Vietnam could stabilise the exchange rate and monetary policies.
VNN
|
