Korean conglomerate sets up $860m investment fund for Viet Nam

Saturday, Dec 21, 2019 07:47

SK Group has launched a $860 million corporate partnership fund with the National Pension Service of Korea to increase investment in Vietnamese companies. — Photo tbck.vn

The National Pension Service of Korea recently launched a US$860 million corporate partnership fund with the Korean conglomerate SK Group that will allow the latter to increase investment in Vietnamese firms Masan Group and Vingroup, according to the Korean Investors news outlet.

Under the partnership, SK Group will be able to co-invest with Vietnamese companies in new businesses, enjoy higher priority when making an equity investment in their Merger and Acquisition deals, and invest in Masan and Vingroup's listed subsidiaries.

In May, SK Group invested $1 billion to buy a 6.1 per cent share in Vingroup, and $470 million for a 9.4 per cent share in Masan Group last year.

Naturon Co Ltd, a Korean-based textile company, noted that Viet Nam's market has high potential because of the country's stable, high-growth economy and young population, according to Sai Gon Giai Phong newspaper.

In addition, the South Korea government's New Southern Policy has identified ASEAN and Viet Nam as markets for which Korea will prioritise its investment.

Korean businesses are pouring more money into retail, finance and green energy industries in Viet Nam as opposed to mostly electronic components as they have done in the past. The food processing industry is also seeing more investment from Korean businesses.

Vo Tan Thanh, deputy chairman of the Viet Nam Chamber of Commerce and Industry, said the Vietnamese government was improving foreign investment attraction policies for environmentally-friendly projects that use advanced technology, and for companies that want to work closely with Vietnamese businesses. — VNS

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