Specifically, over the first two months of 2018, foreign investment streams into the domestic market through capital contribution and share purchasing hit $1.25 billion, a 102.5 per cent rise against the same period in 2017.
Meanwhile, various FDI-backed projects were given investment certificates and approved for construction in Vietnam.
In early March, global equity firm Warburg Pincus announced its decision to invest over $370 million into Techcombank (OTC: TCB), supporting the bank’s scheme to raise equity to fund its expansion, which would likely further bolster its leading position in the Vietnamese financial sector.
The investment deal would in turn add to the total investment commitment of the New York-headquartered equity firm in Vietnam to reach more than $1 billion.
Jeffrey Perlman, managing director, head of Southeast Asia at Warburg Pincus, stressed that since Vietnam had one of the fastest growing finance and banking sectors in Southeast Asia, the investment in Techcombank aimed at reassuring Warburg Pincus’ standing in the market as well as further boost their business operations in the country on the long run.
Recently, Korea Exchange Bank (KEB), a South- Korea-based foreign exchange bank, was reported to seek share-purchasing opportunities at Bank for Investment and Development of Vietnam (BIDV).
According to newswire Business Korea, with the aim of business expansion in Vietnam, the Seoul-headquartered bank is actively pursuing BIDV’s shares, expecting to gain the approval from the Vietnamese government to finalise the transaction.
Previously in 2017, TPBank signed a contract with PYN Fund Management, whereby the Vietnam-based bank agreed to sell 4.99 per cent of its stakes to the Finland-based fund. The deal value is equivalent to around $40 million. Likewise, Vietnam Prosperity Bank (VPBank) gained a total of $250 million of foreign investment through its initial public offering (IPO).
Also, WHA Hemaraj, a Thailand-based land development public company, officially started the construction of WHA Hemaraj-Nghe An Industrial Zone with the initial capital of roughly $1 billion. Likewise, AEON Mall, a Japanese shopping mall developer, recently hosted the ground-breaking ceremony of AEON Mall Hadong which is the Japanese developer’s fifth shopping mall in Vietnam and the second in Hanoi, after AEON Mall Long Bien.