5. Vietnam offers a unique opportunity
for highly attractive and sustainable
long-term investments
6. Vietnam - A Country On The Move
Vietnam is one of the fastest growing developing economies Vietnam formally acceded to the WTO as its 150th member on
in the world. It is going through a far-reaching transformation January 11, 2007. To meet the obligations of WTO membership,
from an inward-looking planned economy to a market-based Vietnam revised nearly all of its trade and investment laws
and opened one. Vietnam’s economic growth rate has been and guiding regulations. As a result, foreign investors and
among the highest in the world in recent years, expanding those seeking to sell goods and services to the increasingly
annually at 7-8.5 percent, while industrial production has been affluent Vietnamese population will benefit from the improved
growing at around 14-15 percent a year. The country is now legislative framework and lower trade barriers. Local firms that
aiming for middle-income country status by 2010. have heretofore enjoyed a range of protections, meanwhile, will
experience increased competition.
In 1986, the Vietnamese Government approved a broad
economic reform package called “Doi Moi” (renovation) that After 1989, Vietnam liberalized trade, devalued its exchange
introduced market reforms and dramatically improved Vietnam’s rate to increase exports, and embarked on a policy of regional
business climate. The country averaged around 8% annual gross and international economic re-integration. Vietnam has
domestic product (GDP) growth from 1990 to 1997 and 6.5% demonstrated its commitment to trade liberalization in recent
from 1998-2003. From 2004 to 2007, GDP grew over 8% annually. years, and integration with the world economy has become
The shift away from a centrally planned economy to a more one of the cornerstones of its reform program. Vietnam has
market-oriented economic model improved the quality of life for locked in its intention to create a more competitive and open
many Vietnamese. Per capita income, $220 in 1994, rose to $726 economy by committing to several comprehensive international
in 2006 with a related reduction in the share of the population trade agreements, including the Association of Southeast Asian
living in acute poverty. Nations (ASEAN), Free Trade Area (AFTA) and the U.S. - Vietnam
Bilateral Trade Agreement (BTA). Vietnam’s accession to the
World Trade Organization will further integrate Vietnam into the
global economy.
7. As a result of these reforms, exports expanded significantly, Thanks to the BTA signing and WTO accession, the pace of
growing by as much as 20%-30% in some years. In 2007, exports investment flows has accelerated. By the end of 2007, Vietnam
accounted for 78% of GDP. Imports have also grown rapidly, and had attracted $83.1 billion in foreign investment commitments
Vietnam has a significant trade deficit of $12.8 billion in 2007. from 8,590 projects since the country was opened to foreign
Vietnam’s total external debt, accounting for 30.2% of GDP in investment in 1988, of which $29.236 billion has been
2006, was estimated at around $18.4 billion. disbursed.
Vietnam strongly encourages foreign investment as part of its Vietnam’s financial system is in the early stages of reform.
development strategy, and the government is committed to One hundred and fifty three companies are listed in the
improving the business and investment climate. The continued Ho Chi Minh Stock Exchange and 138 in the Hanoi Securities
ability to attract overseas capital, through foreign direct Trading Center, with a joint capitalization of $13 billion as of
investment (FDI) and official development assistance (ODA) 30 June 2008. The majority of listed firms are former SOEs that
are integral parts of the Government of Vietnam’s (GVN) growth have undergone partial privatization (equitization). In 2008 and
target of 8 percent GDP for 2008. 2009, the GVN plans to conduct initial public offerings (IPOs)
of a number of large SOEs, however the initial timeline for
The GVN’s most recent Five Year Plan (2006-2010) sets FDI SOE equitization has slowed since the market cooled halfway
targets of $17.5-19.5 billion in disbursements from licensed through 2007, and strategic investors have become more
foreign investment projects and approximately $10 billion in reluctant to buy in at what they see as high share prices. Despite
ODA. The GVN also expects to mobilize $4.3 billion by 2010 these setbacks, Vietnam’s stock market is increasingly becoming
in foreign indirect investment through bonds and shares sold an attractive investment channel for foreign investors and a real
overseas. source for financing.
8. Overview Vision
Founded in 2006 while Vietnam was Viet Capital was established to fully
experiencing dramatic growth in both social support Vietnam’s economic reform
and economic fields, accompanied by an process by identifying investment
ever-accelerating global integration process, opportunities and then create value for
Viet Capital aims to be a constant companion both our investors and the enterprises. We
to its investors on the road to prosperity. look forward to maximizing the benefits for
all parties, and at the same time support
With our talented pool of well-qualified the prosperity of the nation. We have
and enthusiastic local professionals, VCAM’s harnessed a well qualified team with a
goal is to become one of the leading asset common goal, a fresh perspective and a
management companies in the country. youthful vigor to take on all challenges.
We commit to providing attractive returns
at acceptable levels of risk to our investors,
creating a fair and friendly working
environment for our employees and fulfilling
our social responsibilities. We are proud to be
a domestic fund manager to manage both
on-shore and off-shore money under various
structures.
9. Mission Strengths Corporate
Governance
Viet Capital aspires to be one of the leading A young, dynamic home-grown team with At VCAM we firmly believe that companies
asset management companies in Vietnam. a well entrenched and extensive local which are transparent and well governed,
A truly home grown team managing funds network to tap into a wide array of target operating in a responsible and sustainable
to generate attractive and superior returns investment companies covering a broad way should have the right culture,
for investors with controlled and managed spectrum of industries. attitudes and mechanisms in place to
risks, and providing value added services to support both their long-term health and
investee companies. We are creative, independent thinkers enhance shareholder value.
with a deep understanding of the
We will at all times maintain the highest Vietnamese market which means that we Confidence in the integrity and quality
level of professionalism consistent with can offer the best solutions tailored to of good management is essential if we
international standards. every investment need. are to maintain long-term relationships
with companies. We aim to make positive
Viet Capital aims to be a socially Global reach with strong international contribution towards the evolution of
responsible organization both to connections. good corporate governance by taking an
employees and society and will active interest in the companies in which
continuously contribute to worthy We have developed the skills necessary to we invest and by protecting the rights of
community development projects. invest in a broad range of assets as a result of our investors.
understanding our clients’ exact needs.
10. Investment Strategy
• Investments are prioritized in industries which aim to improve
living standards and add value to Vietnamese society. Investments
in unhealthy industries particularly those which negatively affect
public health and the environment are avoided.
The skills of our investment professionals and the resources of the
organization are deployed to exploit these dynamic investment
opportunities. We are therefore committed to:
• Multi-disciplinary, methodical and systematic processes that can
identify and assess opportunities for profitable investment. All
investments will be subject to comprehensive and in depth due
diligence and evaluation
• An innovative approach that draws upon a variety of asset
We believe that through an active approach to management techniques to deliver tailored investment solutions
investing we can best achieve our investment to our clients. A disciplined and rigorous approach to evaluating
deal opportunities and implementing investments
objective of consistently meeting our clients’
• Assets under management will be allocated into a widely
performance expectations. diversified portfolio to achieve the goal of optimizing its profit
within an acceptable risk ratio.
• Our mission is to capture the opportunities presented by the • We believe in close partnerships with our people.
open, dynamic and fast growing economy of Vietnam
Leveraging our international and industrial relationship,
• Pursuing a long-term and fundamental investment strategy, the VCAM plays not only the role of financial investor but also acts as
Fund seeks to buy shares of companies which posses sound and a business partner to its investee companies, adding more value
sustainable competitive advantages in high growth industries through consulting and bringing potential industrial partners
at reasonable price. This strategy secures long-term attractive together. The motto of our investment guidelines and process is:
returns surpassing accompanied risks. Safety, Stability and Effectiveness.
11. Viet Capital aims to be a transparent,
well-governed and socially responsible company
12. Investment Process
• A combination of top-down and bottom-up approaches applied to screening and analyzing process
to ensure superior stock picking
• Being aware of conducting business in a young emerging market, we consider Risk Analysis the
core of our investment process. Thorough and comprehensive due diligence is conducted for every
investment. Site visits and multiple meetings with target’s stakeholders and industrial experts are
mandatory steps to complete the investment process
• After investment, a close and comprehensive watch is conducted rigorously to provide an effective
risk-alerting and to enable a timely action for every investment.
13. Our Services
Viet Capital Asset Management (VCAM) provides a wide range of professional asset management
services and products for institutional investors and high net worth individuals who are interested
in investment activities in Vietnam. With a large pool of available resources and our depth of local
experience and proven ability to provide investment solutions, VCAM is dedicated to serving the
needs of investors onshore and offshore:
Investment Management Portfolio Management
A business that creates and manages funds or VCAM provides advisory wealth management
other investment products for our investors, services and products to institution and/or
VCAM manages assets on behalf of investors individuals. VCAM is dedicated to helping clients
based on the specified investment policy. The achieve all their goals by adopting a customized
product could take a form of a mutual fund or solution/approach.
member fund, either fully diversified or sector-
focused, with a predetermined strategy.
14. Viet Capital aims to be a constant
companion to its investors and
investees on the road to prosperity
16. Viet Capital Fund – VCF
Viet Capital Fund (VCF), established in early 2007, is a limited partnership opportunistic investment fund with an
initial fund size of approximately US$ 50 million. As the primary objective is to achieve a high risk-adjusted return,
VCF is selectively investing in leading firms with excellent management, solid fundamentals and sustainable
growth at reasonable prices. VCF defines itself as always looking for win-win solutions by creating value for all of
its business partners.
Fund size VND 800 billion (as of Jul 31, 2008)
Investment Strategy 90% invested in medium and long term investment and the remainder for short term and
trading purposes.
Sector focus All key sectors with good potential and fast growth in Vietnam (not invest directly in real
estate and infrastructure).
Investment criteria Investing in truly outstanding businesses with top notch management at an attractive price.
Investment size No single investment may exceed 15% of NAV and no more than 30% may be invested into
a group or related group.
Auditor KPMG
Custodian HSBC
Fund Director Linh Nguyen
17. Viet Capital Healthcare Fund (VCHF)
VCHF is the domestic limited partnership fund licensed by the Vietnam State Securities Commission with the
primary objective of achieving medium to long-term (3-5 years) capital appreciation and providing an attractive
level of income (from interest and dividends) through investment in listed and unlisted companies, assets and
other healthcare investment opportunities in Vietnam.
Fund size VND 500 billion (as of Jan 15, 2008)
Investment Strategy 70% invested in mid and long term projects; the remainder invested for short term trading
purposes.
Sector Focus • Pharmaceutical companies
• Hospitals
• High-tech clinics
• Function food companies
• Companies which manufacture medical devices
Investment Criteria High potential health care investment opportunities and social mission with competitive returns.
Investment Size No single investment may exceed 15% of the Net Asset Value of the fund.
Auditor KPMG
Custodian HSBC
Fund Director Tuan Pham
20. With a talented pool of internationally
qualified local professionals, our goal
is to become one of the leading asset
management companies in the country
21. Ms. Phuong Nguyen Mr. Linh Nguyen
Chairperson Managing Director - Viet Capital Fund
Ms Phuong Nguyen was appointed Chairperson of Mr Linh Nguyen supervises overall business operations
Viet Capital from the first day of establishment and at the firm and leads the flagship fund VCF. Prior to
assumed all strategic management responsibility for founding Viet Capital, he worked for Mekong Housing
the firm. Her role includes delivering on the company’s Bank (MHB-Vietnam) where he was principally involved
mission of partnering with people and businesses to in the setting up of a securities firm. Previously, he
help realize Viet Capital’s full potential. In her early also successfully managed a family office in Ho Chi
professional career, she served as Deputy CFO of Holcim Minh City and was a lecturer in International Banking
(Vietnam) Ltd, a Swiss multinational conglomerate. Prior at the HCM Banking University. Linh has gained
to founding Viet Capital, she was chosen as Investment extensive experience in the finance industry, i.e.
Director by Vietnam Holding, a Swiss-based fund having held several senior management positions such
dedicated to opportunistic investments in Vietnam as Finance Director of Bax Global, International US
and listed on London’s AIM. Phuong received her BA in forwarder based in Vietnam, and for Vietnam Lubricant
Business Administration (Banking and Finance) at the & Chemical, a Vietnamese leader in the lubricants
National Economics University, then MBA in Financial industry. He earned an MBA from the Asian Institute of
Management from the International University in Technology (AIT), Thailand and has a BA in Finance &
Geneva, Switzerland. She is now a DBA candidate at the Banking from Ho Chi Minh Economic University.
School of Management, Asian Institute of Technology.
22. Mr. Viet Cung Mr. Tuan Pham
Managing Director - Head of Research Managing Director - Viet Capital Healthcare Fund
Mr Viet Cung provides day-to-day leadership for the Besides playing the main role of leading VCHF as Fund
whole Investment Research team which is closely Director, Mr Tuan Pham is also in charge of all offshore
involved in all Viet Capital projects. Prior to founding investment funds. He previously held the position
Viet Capital, he was the Chief Analyst and one of the of Chief Financial Officer at VinaCapital, having had
Investment Directors of Vietnam Holding, a Swiss- overall responsibilities for finance, human resources
based fund. He was also one of the first professionals and operations in the company. He was also involved in
of the Ho Chi Minh City Securities Trading Center when the Company’s strategies and business development,
it was established in 1998. Since 2002, he has been a investor relations, fund raising activities and represented
lecturer at the National Economic University’s Business VinaCapital on several Boards of Investees’ companies.
School, teaching corporate finance, securities market In addition, Tuan also has more than 10 years of experience
and valuations. As a founder of the PSV Consulting in taxation and assurance in PricewaterhouseCoopers
firm, he has worked with Vietnam’s two leading (Vietnam and Australia) and Dutch Lady Vietnam as Tax
securities companies. Viet holds a Masters Degree Manager and Business Assurance Manager, respectively.
in Finance from the University of Sydney and a BS in He earned a Bachelor degree in Accounting from Sydney
Food Processing Engineering from the Technological University of Technology, Australia and is currently a
Institute in Odessa, in the Ukraine, formerly in the member of the Australian CPA.
Soviet Union.
23. Mr. Tu Pham Ms. Hanh Do
Finance Director Hanoi Chief Representative cum. PR Manager
Mr Tu Pham is in charge of financial performance, back Ms Hanh Do leads the Hanoi representative office and
office operations and Human Resource Management. public relations for the whole company. Prior to joining
He has joined Viet Capital directly from Citigroup Viet Capital, she was the Economic Growth Specialist
where he served as Senior Relationship Manager of the overseeing United States economic growth projects
Commercial Banking Group, in charge of FDI – the Rest with the U.S. Agency for International Development
of Asia Desk. Before that, he was Head of the SME Desk, (USAID). In this role, she was involved in managing
also in Commercial Banking for HSBC Banking Group. and administering a range of economic development
For the first ten years of his professional career, Tu held projects supporting the country’s economic reform
various positions such as Finance Manager, Business process. Prior to this, she had years of experience in
Planning & Analysis Manager, Finance Controller, Chief the macro-economic and public administration areas,
Accountant for IKEA B.V, Bristol Myers Squibb, Novartis serving with Ministry of Industry, Ministry of Planning
S.A and Toshiba, including 2-years working full time in and Investment and the United Nations Development
Singapore and other Asian countries. Tu holds a BA of Program (UNDP). Hanh holds a Bachelor degree in
Science from Hochiminh City University of Economics International Business from Hanoi Foreign Trade
with a focus on Corporate Finance since 1996. University and a MBA from the University of Southern
California for Professional Studies.
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27. Contact Us
Head Office
Saigon Tower, Suite 1701,
29 Le Duan Street, District 1,
Hochiminh City, Vietnam
Tel: +84 8 3823 9909
Fax: +84 8 3824 6329
Email: info@vietcapital.com.vn
www.vietcapital.com.vn
Hanoi Representative Office
C/o: Saigon Tower, Suite 1701,
29 Le Duan Street, District 1,
Hochiminh City, Vietnam
Tel: +84 8 3823 9909
Fax: +84 8 3824 6329
Email: info@vietcapital.com.vn
