Mirae Asset Management on Monday signed a joint venture agreement with an investment arm of Viet Nam’s State Capital Investment Corporation (SCIC) to form a management fund.

The asset management unit of Mirae Asset Financial Group is the first South Korean asset management company to form a legal entity in Viet Nam instead of opening a branch to acquire stakes in local companies.

According to a statement, Mirae Asset Management will acquire an entire stake in Tin Phat Management Fund Joint Stock Company and issue shares worth some 30 per cent of its total holding to SCIC’s investment arm SIC at a later date to form a joint venture.

“The joint venture will serve as our forward base in the Southeast Asian market. We will actively cooperate with SCIC by sharing our know-how in the global market,” Mirae Asset Financial Group’s chairman Park Hyeon-joo said in a statement.

The company plans to introduce new funds in Viet Nam while diversifying its portfolio to include real estate and private equity funds.

Viet Nam is a fast-growing market, with its stock market being among the best performers in the world. The benchmark VN Index climbed 48 per cent in 2017, and market capitalisation has reached some 70 per cent of the country’s gross domestic product.

Currently, there are some 47 asset management companies operating in the country, with some US$6.8 billion assets under management.

Mirae Asset Global investment, founded in 1997 in the wake of the Asian currency crisis, has presence in 12 countries. It opened its first office in Viet Nam in 2006, delivering market research and asset management services to South Korean clients.

In April last year, its venture capital arm, Mirae Asset Venture, led an undisclosed Series C fundraising round for Vietnamese games start-up Appota, along with Korea Investment Partners. — VNS