Foreign investment funds making huge profits in Vietnam

Nawaplastic Industries (Saraburi) has wrapped up the sale of 21.27 million NTP shares of Thieu Nien Tien Phong Plastics, or 23.84 percent of charter capital of the company, after five years of investment.

Analysts said the Thai investor earns roughly VND1.5 trillion, or three times higher than the initial investment capital. Prior to that, it received hundreds of billions of dong worth of dividends from Thieu Nien Tien Phong Plastics.

Pyn Elite Fund announced its net asset value has reached 420 million euros, an increase of 80 million euros compared to the beginning of the year.

The fund has made big money so far this year because the prices of the shares it is holding, including The Gioi Di Dong (MWG), Hoa Binh (HBC), DIC Corp (DIG), Khang Dien (KDH) and Vinaconex (VCG), have been increasing sharply.

Just after nine months of investment, the fund from Finland (which was initially named Mutual Fund Elite) has earned VND2 trillion from the Vietnamese stock market.

After re-assessing the investment item, Singaporean beverage group F&N reported the profit of $1 billion from Vinamilk shares.

Prior to that, F&N Dairy Investments earned VND460 billion in dividends from Vinamilk which advanced 2017 dividend in the first campaign (VND2,000 per share).

Meanwhile, Military Bank’s share price soared by 70 percent in the first nine months of the year. With the current price of VND23,000 per share, the 10 million MBB shares held by Composite Capital Master Fund LP are worth VND230 billion.

Pyn, Dragon Capital and VinaCapital, the three investment funds with largest investment capital in Vietnam, all have been doing well since the beginning of the year. They have been selling shares for profit and pouring money into other shares to optimize profit.

The profits in Vietnam have encouraged more foreign funds to come to Vietnam.

Soon after Nawaplastic withdrew capital from Tien Phong Plastics, another foreign investor poured money into it. The investor, who successfully bought 9 million shares worth VND700 million on October 12, was from Japan.

In 2016-2017 fiscal year, VOF, managed by VinaCapital, injected $220 million into private, listed companies and bonds after withdrawing capital from foreign markets.

Sixty percent of investments in VOF’s portfolio are listed shares, including ones with very high price increases such as HPG (+50 percent) and VNM (+40 percent).

Analysts noted that some Japanese institutions are eyeing the shares of oil & gas companies. A subsidiary of Tokyo Gas spent VND1.3 trillion to acquire 24.9 percent of PGD. Meanwhile, JX Nippon Oil & Energy is a strategic shareholder of Petrolimex.