BIDV to set up investment fund

Vietnamese state-run Bank for Investment and Development (BIDV) is seeking approval to set up a fund to invest in the country’s manufacturing and energy sectors.
A venture between BIDV and 10 other institutions, the fund is expected to debut by the second quarter, according to a bank spokesman.
It will have a registered capital of VND100 billion (US$6.25 million) and might mobilize up to VND10 trillion.
Another source said many large Vietnamese corporations would contribute to this fund, Vietnamese state-run Bank for Investment and Development (BIDV) is seeking approval to set up a fund to invest in the country’s manufacturing and energy sectors.

A venture between BIDV and 10 other institutions, the fund is expected to debut by the second quarter, according to a bank spokesman.

It will have a registered capital of VND100 billion (US$6.25 million) and might mobilize up to VND10 trillion.

Another source said many large Vietnamese corporations would contribute to this fund, including the Vietnam Post and Telecommunications Group (VNPT), and some firms in the IT, power, and industry sectors.

BIDV and VNPT became strategic partners when they sealed a cooperation agreement in February.

Under the agreement, the two sides will join forces to establish investment funds in various sector including energy, telecoms, real estate and mining.

A BIDV representative said the two parties had also discussed either setting up or controlling a major portion of stakes in companies involved in the country’s forthcoming key mega projects.

These comprise the expressway connecting the Ho Chi Minh City – Long Thanh – Dau Giay, the Vietnam-Laos Hydropower plant, Vietnam – Cambodia Hydropower plant, and a bank for trade, industry and services of Vietnam.

Last year, the 50:50 joint venture BIDV – Vietnam Partners Investment Management launched a $100 million members’ fund named VIF.

It invests in equitized state enterprises and new joint stock companies in telecoms, oil and gas, mining, and tourism.

Around 20 leading companies like FPT, Vinashin, Vinconex, Song Da Corp., and VNPT are members of VIF.

Source: Thanh Nien