Vietnam Partners’ Services

Vietnam Partners provides comprehensive advisory services coupled with hands-on management and co-investment to Vietnamese and overseas corporations, institutional investors, financial institutions and government entities seeking high-impact opportunities in Vietnam. Our services include:

Private Equity Fund Management

Vietnam Partners was one of the first foreign entrants into the private equity business in Vietnam. In 2006, VPLLC formed a 50/50 joint venture with the Bank for Investment and Development of Vietnam (BIDV), the second largest commercial bank in the country, to manage two private equity growth funds focused on the domestic market under the name BIDV – Vietnam Partners Investment Management JVC (BVIM). In March 2007, Vietnam Investment Fund I, denominated in Vietnamese Dong, closed for the equivalent of $84 million. As of October, 2015, the fund had returned 60% of capital, with substantial remaining net asset value comprised largely of listed securities. Liquidation of all portfolio holdings should be completed by mid-2016. In late 2007, Vietnam Investment Fund II, a dollar-denominated fund with original binding commitments of $42 million, closed at $7.4 million due to the accelerating weakening of the international financial system. The fund liquidated successfully in early 2013, delivering a net gain of 18% to investors. Vietnam Partners is currently considering various options for launching a third fund focused on acquiring control positions in none-core businesses of state-owned enterprises. Key private equity investments to date include:

Market Capitalization June 30 2015

Banking
Taxi Service
Information Technology
Seafood Production
Fertilizer & Chemicals
Furniture

Principal Investment/Merchant Banking

Vietnam Partners distinguishes itself from the agency model of fund managers and investment banks by making direct investments in its own funds, client companies and projects. The firm’s leadership believes that the key to successful investing in Vietnam is hands-on involvement. The largest limited partner in VIF-I is a group consisting mostly of VPLLC investors, including the firm itself. Vietnam Partners is also founder and major investor in Indochina Automotive SLLC, the exclusive distributor of Ducati motorcycles in Vietnam. Project Development and Strategic & Financial Advisory engagements typically stipulate a significant role for Vietnam Partners in overall management in addition to capital raising and M&A advisory services. Direct investments include:

indochina

INDOCHINA AUTOMOTIVE SLLC

Exclusive distributor of Ducati motorcycles

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SANNAM HOA BINH

450 hectares outside of Hanoi zoned for multiple uses

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Lake on property (1)

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Lake on property (2)

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Hoa Binh Church

indochina

CHAMPARAMA LUXURY RESORT

Luxury development in Nha Trang (under construction)

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Nha Trang City Center

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Champarama (partially completed)

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Champarama (future villa area)

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Champarama (adjacent bay)

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SAIGON SECURITIES INCORPORATED

Largest securities firm in Vietnam. Vietnam Partners was the first foreign investor in SSI and in the Vietnamese securities industry.

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SSI

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SSI office 1

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SSI office 2

Advisory Services

Vietnam Partners serves as a bridge for companies looking to expand into Vietnam or to grow internationally from a base in Vietnam. The firm focuses on three service categories aligned with Vietnam’s rapid internationalization: Business Development/Strategy, Financial Institutions and Trade.

ADVISORY SERVICES

Vietnam Partners’ advisory services are focused especially on business between Vietnam and the U.S., enhanced by growing capabilities to support business with Europe and key economies in Asia

Business Development/Strategic Services. For companies and institutional investors based in the U.S. looking to build their business in Vietnam, Vietnam Partners offers a wide variety of deliverables, including:

  • market and competitive analysis
  • assessment of relevant government regulations and licenses
  • identification of joint venture partners
  • strategic plans
  • implementation support.

For companies based in Vietnam, Vietnam Partners offers a similar set of deliverables for development of business in the U.S.

 

Financial Institutions Services. Leveraging its substantial experience in the banking market, Vietnam Partners works with domestic banks to grow their business by adapting best practices not yet implemented in Vietnam. Areas of focus include building dedicated SME business units, introducing commercial leasing and expanding overall funding base through overseas private-sector and government vehicles.

 

Trade Services. Vietnam Partners’ services in this area emphasize the financing of two main categories of business: shorter-term, self-liquidating transactions and medium-term, trade-related activities.

Self-liquidating transactions: Vietnam Partners assists local banks to set up and operate service platforms for SME customers that enable them to take advantage of U.S. Exim Bank and similar programs for letters of credit in support of imports from the U.S. to Vietnam. Programs can be designed for minimal Basle III impact. A representative example is import of feed grains for a meatpacking customer. In the same bank-based program approach for export from Vietnam, the firm helps set up tailored “structured” facilities.

Structured facilities: To support SME trade-related business that is not tied directly to letters of credit and require longer financing term, Vietnam Partners constructs customized programs that provide financing from capital sources outside of the country. These programs can support both import and export activities. A representative example is the import of high-ticket medical equipment for a distributor who ultimately installs it at a clinic or hospital where the cash conversion cycle may extend to a year or more. These programs can also be configured to minimize Basle III reserve requirements.

Project Development & Implementation

Vietnam Partners offers key services related to a wide variety of infrastructure projects ranging in size from $30 million to $500 million. Typically, this involves organizing the best consortium of local sponsors, international project managers, general and engineering contractors and providers of technology and equipment. In addition, the firm assists in securing relevant government permits and contracts and develops optimal capital structures that take advantage of government (in and outside of Vietnam) and private sources of capital globally.

Sectors include
  •  Waste-to-energy: medium to large municipalities, factories and industrial parks, agricultural (biomass)
  •  Regional airport privatization: upgrade of facilities, operations
  • Toll roads
public funding sources

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Trade and Development Agency (TDA)

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Exim Bank

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Overseas Private Investment Corporation (OPIC)


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Asian Development Bank

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World Bank