International investors of four funds under the management of theVinaCapital Group recognise Vietnam 's long-term potential but areconcerned about the country's struggle to contain inflation.
VinaCapital chairman Terry Mahony said: "In the short term, Vietnamstill faces challenges including high inflation and interest rates,which cause pressure to investment funds."
Andy Ho, headof investment, said that investors were worried about the dong weakeningand would make decisions only if they discovered opportunitiesunaffected by the forex-rate risk.
However, he said inflation was trending down and should be around 12-14 percent for 2012.
"The most important thing is that the Government should stick to thecurrent policy to ensure stability, as well as invest more aggressivelyand more efficiently in infrastructure and education and training," hesaid.
He added that this development would help improve productivity, thus attracting investors.
VinaCapital CEO Don Lam said he would focus on investor relations withupdates and road shows to Europe, North America and Asia , which wouldbegin later this month.
"We will continue to highlightVietnam 's long-term strengths by actively participating atinternational investment conferences and events," said Don.
Around 40 investors attended the VinaCapital event on Oct. 13 in HCMCity to hear a detailed review of the performance of its fundsover the past 12 months.
"We want our investors to have aclear picture of the investment environment facing our funds, and ouraccomplishments during this challenging time," said the CEO.
Vietnam 's GDP growth has slowed to under 6 percent due to tightfiscal and monetary policies put in place to fight high inflation.
As a result, the equities and real estate markets have performed poorly.
Foreign investment has continued, however, with several significantinvestments by multinational companies attracted to the long-termpotential.
VinaCapital has been involved in deals sellingstakes in several companies, Hanoi Liquor Joint Stock Company to Diageo,a major international drinks firm, and Hoan My Healthcare Group toIndia 's Fortis Health.
"These companies, among others,are looking at Vietnam from a long-term perspective, and the maretremains interesting," said Andy Ho.
As of September,VinaCapital's three AIM-traded investmen funds – which are focused onlisted and private equities, real state and infrastructure – have atotal of 1.7 billion USD in assets under management.
Italso manages, in cooperation with the US firm Draper FisherJurvetson, a technology investment fund, the DFJ VinaCapital LP.
Over the past year, there were several major investments, including theVinaCapital Vietnam Opportunity Fund (VOF) acquisition of stakes in YenViet JSC and Thai Hoa Coffee; Vietnam Infrastructure acquiring a majorstake in Ba Thien 2 Industrial Park in northern Vinh Phuc Province.
VinaCapital is the leading investment management andreal estate development firm focused on Vietnam, with a diversifiedportfolio of 1.7 billion USD in assets under management./.
VinaCapital chairman Terry Mahony said: "In the short term, Vietnamstill faces challenges including high inflation and interest rates,which cause pressure to investment funds."
Andy Ho, headof investment, said that investors were worried about the dong weakeningand would make decisions only if they discovered opportunitiesunaffected by the forex-rate risk.
However, he said inflation was trending down and should be around 12-14 percent for 2012.
"The most important thing is that the Government should stick to thecurrent policy to ensure stability, as well as invest more aggressivelyand more efficiently in infrastructure and education and training," hesaid.
He added that this development would help improve productivity, thus attracting investors.
VinaCapital CEO Don Lam said he would focus on investor relations withupdates and road shows to Europe, North America and Asia , which wouldbegin later this month.
"We will continue to highlightVietnam 's long-term strengths by actively participating atinternational investment conferences and events," said Don.
Around 40 investors attended the VinaCapital event on Oct. 13 in HCMCity to hear a detailed review of the performance of its fundsover the past 12 months.
"We want our investors to have aclear picture of the investment environment facing our funds, and ouraccomplishments during this challenging time," said the CEO.
Vietnam 's GDP growth has slowed to under 6 percent due to tightfiscal and monetary policies put in place to fight high inflation.
As a result, the equities and real estate markets have performed poorly.
Foreign investment has continued, however, with several significantinvestments by multinational companies attracted to the long-termpotential.
VinaCapital has been involved in deals sellingstakes in several companies, Hanoi Liquor Joint Stock Company to Diageo,a major international drinks firm, and Hoan My Healthcare Group toIndia 's Fortis Health.
"These companies, among others,are looking at Vietnam from a long-term perspective, and the maretremains interesting," said Andy Ho.
As of September,VinaCapital's three AIM-traded investmen funds – which are focused onlisted and private equities, real state and infrastructure – have atotal of 1.7 billion USD in assets under management.
Italso manages, in cooperation with the US firm Draper FisherJurvetson, a technology investment fund, the DFJ VinaCapital LP.
Over the past year, there were several major investments, including theVinaCapital Vietnam Opportunity Fund (VOF) acquisition of stakes in YenViet JSC and Thai Hoa Coffee; Vietnam Infrastructure acquiring a majorstake in Ba Thien 2 Industrial Park in northern Vinh Phuc Province.
VinaCapital is the leading investment management andreal estate development firm focused on Vietnam, with a diversifiedportfolio of 1.7 billion USD in assets under management./.
