Indirect investment from Singapore keeps flowing to Vietnam

F&N Dairy Investments is holding over 301.5 million shares of Vinamilk - Photo: https://tbck.vn

In the first half of 2019, Singapore-based firms of F&N Dairy Investments and Platinum Factory showed its interest in purchasing shares of the Vietnam Dairy Products Joint Stock Company (Vinamilk).

Currently, it is the second biggest shareholder of Vinamilk with over 301.5 million shares or 17.31 percent.

Meanwhile, Platinum Victory bought more than 184.8 million shares of the Vietnamese firm over the past three years to take 10.62 percent of ownership.

Also in the first half of 2019, the Singapore Government’s Singapore Investment Corporation (GIC) bought 2.55 percent of Vietcombak’s shares at 55,800 VND per share and total value of 265 million USD.

The stated-owned firm of Singapore also increased its ownership in Masan group from 8.98 percent to 10.18 percent.

Jeffrey Jaaensubhakil, GIC Chief Investment Officer, said that Vietnam is forecast to become a “new factory of the world”, and the GIC has special interest in leading firms of the country.

Last year, the GIC restructured the investment portfolio, divested capital from big market and gave more investment to others such as Brazil, Vietnam and China, he said.

At the Investment Asia held by Maybank Kim Eng in Singapore recently, regional investors showed great interest in Vietnam.

According to Jeffrey Goh, Regional Head of Brokerage of Maybank Kim Eng, said that his customers, especially those from Singapore, wish to explore the Vietnamese market.

They requested more information of the market, including legal corridors and new products in the secondary market, he added.

However, Yeu Huan Lai, an expert from Nikko Asset Management, said that obstacles in the celling level for foreign ownership should be removed as many Singaporean investors are still facing problems with the regulation, especially in areas with restriction of foreign investment.

At the same time, many Vietnamese firms have yet to make reports at international standards and in English, making it difficult for investors to define businesses’ value, he added.