VietNamNet Bridge – The investment deal of US$200 million in Vietnamese Masan Consumer Group which has just been announced by Kohlberg Kravis Roberts (KKR), one of the world’s private biggest funds, is believed to trigger a new wave of private investment funds returning to Vietnam.

Despite the big challenges, including the worries about the real estate and banking sectors, Vietnam has successfully called for foreign investments.

However, most of the investment deals come from existing strategic investors who plan to increase their presence and expand business in Vietnam.

Meanwhile, foreign finance investors, an important force of a developed capital market, still keep quiet.

Nevertheless, economists believe that the situation would be improved after KKR disburses the $200 million investment deal in Masan Consumer Group. The investment may awaken the international finance investors and help them realize the great potentials and opportunities in Vietnam.

Foreign strategic investors have increased their investment scale in Vietnam. Especially, the increase of their presence of Japanese investors have caught the special attention from international investors.

Tokyo-Mitsubishi UFJ, the Japanese biggest bank has purchased 20 percent of stakes of Vietnamese Vietinbank worth $743 million dollars, while Sumitomo Life bought 18 percent of shares of Bao Viet, the biggest insurer in Vietnam, from HSBC, at $340 million.

Lately Siam Cement, a Thai building material firm, has bought 85 percent of stakes of Prime, one of the Vietnamese biggest tile manufacturer.

Meanwhile, there has been not much information about the plans by foreign finance investors to pour money into primary shares of Vietnamese companies.

There is an important difference between primary and secondary shares. The first ones show the new capital flow to Vietnam to fund the development, while the second ones show the trade for profits.

Instead of the new investment deals, sources have said about the finance investors who have been trying to withdraw their capital from Vietnam. 40 percent of Proconco’s stakes were sold in 2012 to Masan Consumer from the investment fund managed by Prudential.

VinaCapital and DWS Vietnam have withdrawn their capital from Prime, while VinaCapital is offering to sell its stakes in Metropole Hanoi hotel.

The above said investment by KKR could be seen as a signal showing that private funds are returning with serious investment plans. If this is true, this would be a positive sign of the national economy.

Analysts said a big deal is not enough to create a new tendency, and that not all the companies are attractive like Masan Consumer Group.

However, Vietnamese have every reason to believe that the deal would bring positive things rather than negative ones, because it would help drive the finance investors’ attention to Vietnam. Once foreign investors accept to pour money into Vietnam, the domestic enterprises would have capital to develop.

Vietnamese commercial banks are now facing a lot of challenges, which have forced them to restrict lending. In such circumstances, foreign capital, no matter it is from strategic investors or finance investors, would be useful for the national economy.

DDDN