The $500,000 joint venture will operate the Viet-Fund, which is expected to be the first investment fund set up in Vietnam since the stock market opened in July 2000.
Viet-Fund has yet to be approved by the commission.
VFM was granted its licence last week, following Prime Minister Phan Van Khai’s approval earlier this month.
The State Securities Commission (SSC) is also considering licensing fund management companies under the Phuong Nam Commercial Bank and TVH Corporation.
Sacombank chairman Dang Van Thanh said VFM would create a new investment channel to lure idle money from the public, “and will help investors with professional investment management services”.
Dragon Capital partner John Shrimpton said licensing the first securities fund management firm in Vietnam was a fresh move in developing the country’s financial market.
“The move proves the government believes in foreign investors having a part in the financial market and in fundraising activities. It is a good signal for international investors.”
VFM director and Dragon Capital partner Tran Thanh Tan said after VFM was licensed, his firm would continue to seek SSC approval for the Viet-Fund.
“We are finalising the fund prospectus as well as preparing marketing plans to raise funds from investors.
“We will begin raising funds as soon as we get SSC approval for the fund,” he said.
Tan said he expected between VND100 billion ($6.5 million) and VND150 billion ($9.6 million) to be raised in the first phase.
Tan said he believed Vietnam’s growing economy, its safe and friendly investment environment, and political and social stability, would attract foreign investors to the fund.
“With the good preparations and experiences over the past years in raising funds in Vietnam, we hope we can reach our goal,” he said, adding that the size of the fund would be announced by the end of this year.
Tan said Sacombank and Dragon Capital would contribute at least 30 per cent of the fund. The remaining funds would be mobilised from institutional investors, both banking and non-banking, and individuals.
“Via the VFM, Viet-Fund will invest 60 per cent of the mobilised capital in securities and the remainder in banks, consumer goods production, software development and infrastructure,” he said, adding that the fund would mobilise another VND100 billion ($6.5 million) in the next two years.
VFM is still deciding whether HSBC or Vietcombank will be the bank for the Viet-Fund.
Nguyen Hong (vir.com.vn)
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