Many Vietnam investment funds impressed with investment performance in 2023 surpassing the growth of the reference index.
In 2024, Vietnam investment funds will continue to play an important role in promoting the development of the financial market and economy. These funds, including private equity funds and venture capital funds, have attracted significant capital from both domestic and international sources. The main objective of these funds is to invest in potential businesses in Vietnam, supporting their development and expansion.
2023 showcased impressive results
Of the nearly 20 investment funds operating in Vietnam, only 3 funds have profits in 2023 lower than the growth rate of the VN-Index, the rest have profits equivalent to, or superior to, the general index.
Of which, VCBF Growth Fund (VCBF-MGF) of Vietcombank Fund Management Company (VCBF) achieved a profit of up to 32%, much higher than the 12.2% increase of the VN-Index. This is also the highest profit rate achieved by funds in the past year.
VCBF Blue Chip Fund (VCBF-BCF), another fund of VCBF, recorded an average return (calculated by the compound interest method) from its inception from August 2014 to the end of February 2024 of 12.9%/year, much higher than the average annual growth of the VN-Index in the same period, reaching only 7.7%/year. This fund's performance also "beat" the increase of more than 3/4 of the stocks in the VN30 basket in the same time period.
Investment Fund Returns in 2023
Vietnam investment funds managed by VinaCapital also achieved positive investment results. Specifically, two equity investment funds, VinaCapital-VESAF and VinaCapital-VEOF, achieved profits of 31% and 19.5%, respectively, last year.
The VinaCapital-VIBF Balanced Fund achieved a return of more than 11%, and the VinaCapital-VFF Bond Fund also achieved a return of 8%, both outperforming their respective benchmark indices. In addition, the newly launched equity fund VinaCapital-VMEEF, established in May 2023, also achieved a return of more than 13% by the end of the year, higher than the increase of the VN-Index in the same period of 7.3%.
VinaCapital Equity Special Access Fund (VinaCapital-VESAF) is an open-ended equity fund that invests mainly in listed stocks with small and medium capitalization with high profit growth potential, stable operating cash flow and low valuation; stocks with foreign ownership limits, especially stocks that have no room for foreign investors.
Development areas of Vietnam investment funds in 2024
In recent years, Vietnam investment funds have recorded significant capital growth, thanks to a favorable investment environment and supportive policies from the government. In 2024, this trend will continue with many investment funds attracting large amounts of capital from both domestic and international sources. Factors driving capital growth include: Government support policies, Stock market development, Interest from foreign investors.
Vietnam investment funds focus on many different sectors. Investment funds in Vietnam have expanded their investment scope to many diverse sectors, aiming to maximize profits and minimize risks. Below are some of the main investment sectors of these funds:
Information technology (IT) and Fintech
The technology sector, especially information technology and fintech, is a bright spot attracting great attention from investment funds. Vietnam is witnessing an explosion of technology startups with high growth potential. Funds such as VinaCapital and Mekong Capital have invested heavily in fintech companies such as MoMo, Tiki and VNPay, thanks to the industry's potential for expansion and high profitability.
Artificial intelligence (AI) and Blockchain:
The development of AI and blockchain technology has also attracted the attention of investment funds. Funds such as 500 Startups Vietnam have invested in startups specializing in AI and blockchain, aiming to exploit the potential of these advanced technologies in improving business efficiency and innovation.
Renewable energy
Vietnam has great potential for renewable energy, especially solar and wind energy. Funds such as Dragon Capital have invested heavily in renewable energy projects, aiming to exploit this potential and meet the growing demand for clean energy. Many solar and wind energy projects in Central and Southern Vietnam have received investment capital from large funds.
Consumer goods and retail
The consumer and retail sector in Vietnam is growing strongly, thanks to the growth of the middle class and increasing consumer demand. Mekong Capital has invested in many retail chains such as The Coffee House and Pharmacity, to take advantage of the opportunities from the development of the consumer market.
Consumer goods companies are also important investments for funds. VinaCapital and Saigon Asset Management have invested in food and beverage companies, thanks to the growing consumer demand and large export potential of the sector.
The retail - consumer industry achieved many positive results in 2024
Healthcare and education
The healthcare sector, especially high-quality healthcare services and medical technology, has also attracted the attention of investment funds. Funds such as VinaCapital have invested in private hospitals and clinics, aiming to improve the quality of healthcare services and meet the growing demand for healthcare.
The education sector, especially private education and technology education, has also received great investment attention. Mekong Capital has invested in online education service providers and private schools, aiming to exploit the potential from the growth in demand for high-quality education.
Real estate
Real estate remains one of the important investment sectors of the Vietnam investment fund. Funds such as VinaCapital and Dragon Capital have invested in commercial and residential real estate projects in major cities such as Hanoi and Ho Chi Minh City, to meet the increasing demand for living and working space.
The development of industrial parks and logistics infrastructure has also attracted the attention of investment funds. Many investment funds have poured capital into industrial real estate projects, aiming to take advantage of opportunities from the increase in manufacturing and commercial activities in Vietnam.
Vietnam investment funds often apply long-term investment strategies, focusing on sustainable development and creating long-term value for businesses. Private equity funds often invest in companies with high growth potential and support them in management, business strategy and market expansion.
Prospects from Vietnam Investment Fund activities 2024
Vietnam investment funds have made important contributions to the development of the Vietnamese stock market and economy. The rise of investment funds has fueled the development of the stock market, with many listed companies recording strong growth in share prices and trading volume.
In addition, investment funds also play an important role in supporting Vietnamese enterprises to enhance their competitiveness, improve management and expand their markets. Private equity funds often participate in corporate management, develop long-term development strategies and provide financial support, thereby helping enterprises grow more sustainably and effectively.
In addition, finding potential investment opportunities is also a big challenge. The investment market in Vietnam is becoming more competitive, requiring investment funds to have clear and effective strategies to attract and maintain investments.
In 2024, Vietnam investment funds have and will be actively contributing to the development of the economy and financial markets. With effective investment strategies and support from a favorable macroeconomic environment, investment funds continue to seek and take advantage of potential investment opportunities in Vietnam.