VIF II

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The Vietnam Investment Fund II (VIF II) is a 10 year closed-end private equity fund that aims to invest in mainly privately-held SMEs in Vietnam through equity. The objective of VIF II is to provide mid-market expansion capital to Vietnamese companies willing to implement international corporate governance practices that are active in a fast growing sectors where there is shortage of capital; and. The fund will first focus on sectors that are driven by domestic consumption.

Vietnam remains a country where the relatively recent private sector remains underrepresented, and where sustainable growth can only be preserved through the further development of the same private sector. By investing in a private equity fund like VIF II, BIO will be able to support multiple Vietnamese SMEs in their further expansion. This aspect is further reinforced by the current economic conditions, in which access to capital has been made more difficult as banks have been asked to limit the new credits to companies.

The development impact of VIF II should materialize in different aspects :

? Job creation is expected to be very high, since VIF II will mostly invest in highly employment-intensive sectors.

? Best practices in terms of governance will be introduced at the level of the investee companies,

? Increase in efficiency will be reached for, especially in respect of the transactions related to the privatization of State-owned Enterprises.

? There should be a clear demonstration effect for local and foreign private investors that investments in entrepreneurial SMEs in Vietnam can be commercially attractive, thus catalyzing further investments by building up local capacity to manage private equity investments.

 


  • Investment amount (€):

    USD 7 million

    Registered office: Cayman Islands Beneficiary country: Vietnam

  • Contract signature :

    2012

  • Nature of intervention :

    Equity

  • Development impacts :

    • 1 — Job creation
    • 2 — Best practices in terms of governance for the portfolio companies