Last week Samsung announced that it would invest another US$920 million to expand its production facilities in Vietnam. In today’s insight piece, Michael Kokalari, VinaCapital’s Chief Economist, shares on-the-ground perspective of how Vietnam has been so successful in attracting consistent inflows of FDI, as well as the impact that FDI companies bring to the economy.
As you know, most equity markets around the world started 2022 slowly. While Vietnam was not immune to this, we maintain our bullish view on the stock market for 2022. Buying on the Covid related dips worked well in 2021 and if we do experience dips this year, we believe these dips will be buying opportunities as well. With the Lunar New Year holiday now behind us, the economy is getting back to normal and will be further boosted by the introduction of the Government Stimulus Plan. In today’s Insight from Michael Kokalari, VinaCapital’s Chief Economist, we analyze the stimulus package and share how it will impact the overall economy and which sectors will benefit the most. The stimulus package will benefit some industries more than others, which will likely create even more dispersion within sectors and individual stocks, benefiting shareholders in actively managed portfolios. Our offshore funds, VOF, VVF, and VAF have been adjusting our positions to make sure that our shareholders gain from the rebound in economic growth fueled by the reopening of the economy and this Stimulus Package.
On 25 January 2022 – VinaCapital Fund Management JSC (“VCFM”) announced that it is serving as investment advisor to Jih Sun Securities Investment Trust, a unit of one of Taiwan’s leading financial services companies, on its newly launched fund, the Jih Sun Vietnam Opportunity Fund (JSVOF).
The re-opening of the economy in Vietnam during the fourth quarter of 2021 has enabled VinaCapital’s investment managers in Real Estate, Private Equity, Venture Capital and Clean Energy to close several important deals. Additionally, the re-opening and subsequent rebound in economic growth means that our pipeline of potential new investments is quite robust. Being on the ground in Ho Chi Minh City, we continue to be very selective on our investee companies, and large scale real estate and energy projects.
On 13 January 2022 – VinaCapital Fund Management Joint Stock Company (“VCFM”) is pleased to announce that its open-ended funds ended 2021 with some of the highest returns in their respective categories. VESAF led the way with a return of 67.0%, making it the best-performing open-ended equity fund in the market in 2021, a continuation of its leading position in 2020. VEOF increased 56.5%, ranking second in the market. Meanwhile, the company’s balanced fund, VIBF returned 35.2%, ranking it second among funds with similar investment strategies. VFF, a bond fund, increased 7.7%, also taking first place for performance in that class. Both equity funds significantly outperformed the benchmark VN-Index in 2021 (+35.7%).