Foreign investors interested in chip, green production in Việt Nam

Don Lam, CEO and founding partner of VinaCapital Group, delivers the opening remarks at its 2024 Investor Conference in HCM City on October 8. — Photo courtesy of VinaCapital

HCM CITY - Green and clean development, including renewable energy and carbon credits, and semiconductors, are among the sectors in which Việt Nam is attracting the most interest from foreign investors, according to VinaCapital Group.

VinaCapital opened its 2024 Investor Conference in HCM City on October 8, with some 130 guests from five continents in attendance.

The two-day conference features a number of speakers representing a wide range of industries and sectors, from tech startups to established industrial companies and banks.

Discussions at the conference mainly focus on economic and stock market outlooks, policies driving Việt Nam’s future growth, domestic consumption trends, banking and real estate sectors, updates on VinaCapital’s funds, its next chapter in venture capital: VCVCF and VinaLiving, its real estate development brand, renewable energy and carbon credits.

The sessions feature senior executives from VinaCapital and guest speakers, including CEOs and senior executives from a range of companies, including FPT Smart Cloud, GHC Strategy & Communications, Cimigo, OCB, Nam Long Group, Gamuda Land, Validus, Quickom, Huize Holdings, Kido Group, and Vĩnh Hoàn Corporation.

Attendees also have the opportunity to visit FPT Corporation’s HCM City campus to learn more about the tech company’s work.

Don Lam, CEO and founding partner of VinaCapital Group, noted that the number of participants this year is 20 per cent higher than that of the preceding year, showing their interest in the Vietnamese market, which is witnessing more positive signals.

Lam said: “The world has seen a great deal of change in the past year. Geopolitical tensions are as high as ever and the near-term outlook for the global economy is uncertain. Yet Việt Nam’s resilience, optimism, and determination to move forward and develop sustainably continues to offer international investors a wide range of very compelling opportunities.

“We look forward to sharing more about these opportunities as well as how we believe VinaCapital is the best positioned investment management company to access them.”

Alex Hambly, VinaCapital’s chief investment officer, highlighted three factors driving Việt Nam’s long-term growth: FDI-led industrialisation, a rapidly expanding middle class, and a wave of production shifts to friendly countries.

Some 130 international investors attend the 2024 Investor Conference hosted by VinaCapital Group on October 8 in HCM City.— Photo courtesy of VinaCapital

Regarding the outlook for the securities market, Nguyễn Hoài Thu, a chartered financial analyst and head of investment at VinaCapital, said the stock market remains firmly on a growth path in the long term due to Việt Nam’s positive economic prospects, stable exchange rates, good control of inflation, an increase in foreign tourists, strong credit and export growth, low interest rates, robust growth in domestic consumption, attractive valuations, and the high earnings growth expected for listed firms, among other factors.

She said the price to earnings and price to book ratios of stock market were at low levels compared to the average of the last 10 years. The market has attractive valuations compared to its regional peers, and the earnings of listed companies are expected to achieve solid growth, with core earnings improving from 11.5 per cent in 2024 to 23.2 per cent in 2025.

She expected 17 per cent growth in earnings per share of listed companies in Việt Nam in 2023-25, higher than in other countries in the region, such as China (14.5 per cent), India (14.4 per cent), and Thailand (12.9 per cent).

VinaCapital is a leading investor in Vietnamese companies, providing long-term growth capital that enables them to invest in their operations and acquire new technology and equipment, allowing them to expand their businesses and contribute to the growth of the country’s economy.

It initiated its first investor conference in 2005, serving as a platform to introduce Việt Nam to foreign investors and promote investment opportunities in the country.