Foreign investors gear towards Vietnam
Domestic and foreign investors are pouring money into Vietnam, attracted by strong economic growth and a slew of sales by state-owned and private companies, according to the Reuters.
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Accordingly, Capital Research and Management Company, Dragon Capital and Mirae Asset Global Investments have devised plans to take up about three-quarters of stakes in the upcoming initial public offering of Vinhomes JSC – a realty developer of Vingroup.
In April, Singapore wealth fund GIC came in as a pre-IPO investor and took a roughly 5.74% stake in Vinhomes by buying shares from Vingroup and other shareholders.
Vinhomes’ first-quarter net profit jumped five times from the same period last year to VND3.99 trillion (US$177.3 million), and revenue surged three times to VND10.54 trillion, its financial statements showed.
Vietnam’s strong growth prospects, the government’s plan to accelerate equitisation and successful private sector IPOs over the past two years have attracted many investors to the country.
Though local equity markets in Vietnam have dropped 15% from a record high struck last month, analysts view the correction as short-lived.
