In the context of more expensive capital costs, Mekong Capital will prioritize units with sustainable cash flows, profits and good business models.
Known as one of the most successful fund management companies in the Private Equity sector in Vietnam, Mekong Capital has just summarized the investment situation last year with many positive points. Despite the difficult market as a whole, many units in the fund's investment portfolio grew strongly.
Not to mention LiveSpo - a consumer health company specializing in the production and sale of liquid probiotic spore products to improve digestive health and enhance respiratory function - with net revenue increasing 79% year-on-year. period.
Hay Marou - a premium chocolate company - recorded net profit growth of 75% year-on-year in 2023. In the fourth quarter, the company expanded its retail network in Vietnam with 3 new stores in Ho Chi Minh City, Da Nang and Hoi An.
Double-digit growth also includes Gene Solutions - revenue up 46% compared to 2022 - mainly driven by 44% growth in the number of test samples through a network of more than 2,670 hospitals and clinics in Vietnam and other countries in Southeast Asia market.
Previously, Mekong Capital was often mentioned as the "golden hand" that conceived a series of billion-dollar revenue companies today such as Thegioididong, Masan Group...
Vietnam has only 3 IPO deals in 2023 - much lower than Thailand and Indonesia
Mr. Chad Ovel - Director of Mekong Capital - shared: "2023 is a difficult year for Vietnam. For the first time, we have witnessed a long-term decline in exports, thereby causing a knock-on effect on a variety of other related occupations.
Not to mention, last year the real estate market also had many fluctuations, and policies still had many problems.
In the financial market, last year there were only 3 IPO deals taking place in Vietnam with very low value, this number is very small compared to neighboring markets such as Thailand and Indonesia. The speed of approval by the State Securities Commission also partly affects the entire market."
In 2024, Mr. Chad forecasts more positively, through 2 signals including:
First, the recovery of exports, especially for industries such as fashion, footwear and furniture - which create jobs for millions of workers.
Second, loan interest rates for consumers are falling. This will motivate people to spend again, not only on essential goods but also on other high-value items such as cars, houses...
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Director of Mekong Capital is especially optimistic about the industrial park real estate sector. According to him, Vietnam is in a very favorable position to receive the shift of production out of China, thereby increasing the demand for land and industrial park services. In addition, the group of consumer companies and consumer product retailers was also emphasized by Mr. Chad, in the context of the economy starting to recover.
Even so, there are still many challenges.
"The area I am still worried about is residential real estate. We have not yet seen any significant increase, although the Government has been making efforts to resolve legal issues related to many projects. Cho Until this is resolved, I believe that many consumers will still be very hesitant to return to the real estate market," he emphasized.
In the past, Mekong has invested in real estate, including Nam Long (stock code NLG) and Intresco. Currently, Mekong Capital's investment portfolio only has one "proptech" left, which is Rever - a technology company in the real estate brokerage field.
"Taste" of Mekong Capital
In the mixed picture of good and bad forecasts, Mekong Capital continues its long-term investment strategy, aiming for long-term growth. Another thing according to Mr. Chad is that this year the fund will choose more carefully. In the context of more expensive capital costs, Mekong Capital will prioritize units with sustainable cash flows, profits and good business models.
For example, when LiveSpo first approached Mekong Capital, they had 5 key probiotic products being sold domestically and internationally. The company is also doing very well at this time, and Mekong Capital sees a clear opportunity to expand.
Mekong Capital also pays special attention to human factors when deciding to invest, especially the mindset and qualities of leaders. "The reason I emphasize this is that Vietnam has a more talented and talented generation of CEOs than just 2 years ago. A company with a good leadership team will be able to attract and retain talented people. A good leader is also shown to be willing to experiment and dare to fail," Mr. Chad said.
Similarly, Gene Solutions has also developed a popular and profitable product, a non-invasive testing method for pregnant women. What Mekong Capital needs to do is invest capital and help them continuously explore new perspectives and new ways of doing things to scale up their operations, thereby realizing their vision.
Not to mention, both the leadership teams at LiveSpo and Gene Solutions are groups of scientists willing to research and test new products. According to Mr. Chad, this is not seen in Vietnam