Asia Funds Create Alliance to Help Funnel Billions Into Vietnam

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SEVERAL regional private equity firms have banded together to establish a Vietnamese alliance, aiming to facilitate US$35 billion of investment into the South-east Asian country over the next decade.

The newly established Vietnam Private Capital Agency (VPCA), founded by five partners from funds including Golden Gate Ventures, Do Ventures and Monk’s Hill Ventures, will organise seminars, support private equity firms and both lobby and work with the government on policy.

Its goal is to facilitate investment in sectors from agriculture to education and health care, said Vinnie Lauria, a board member for the agency.

It’s unclear how the association arrived at its investment projection, which is several times higher than Vietnam’s tech sector attracts annually, at present.

But many investors tout the country’s potential at a time US-China tensions are prompting businesses to relocate factories and target new markets for growth.

Vietnam’s digital economy is expected to surpass US$90 billion in 2030 from US$30 billion last year, according to a joint report from Google, Temasek Holdings and Bain & Co.

Source: Bloomberg

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