Joint venture fund to invest from $4 to $6 million in maternal and baby product retail chain.
The DAIWA-SSIAM Vietnam Growth Fund II L.P (Daiwa-SSIAM II), an investment joint venture fund managed by the Saigon Securities Inc. Asset Management Ltd. Co. (SSIAM) and the Daiwa Corporate Investment Co. Ltd., has recently invested in Concung.com, a Vietnamese retail chain for maternal and baby products.
“The facility will range between $4 and $6 million,” a representative from Saigon Securities Inc. (SSI) told VET, which is the average target investment set by the fund for each deal, she added.
Concung.com was founded in 2011 and has since established 100 outlets in Ho Chi Minh City and some 20 other cities and provinces, bringing authentic and essential products of high quality, traceability, and reasonable prices to every household.
It is also expanding and developing Toycity, a children toys retail concept, with the aim of providing Vietnamese children with more diverse, intelligent, high-quality, safe, and, in particular, reasonably-priced toys. The Concung.com and Toycity chains are expected to expand rapidly nationwide in the future, SSIAM said in a statement.
SSIAM also explained why Daiwa-SSIAM II chose to invest in Concung.com. The retail chain’s competitive advantages are its professional founders and management team, deep roots in information technology and systems management, and strong experience in retail operations and development.
With strong entrepreneurial values together with a young, active environment emphasizing “deliverable commitments”, Concung.com has grown in scale within a relatively short period and certainly has more potential in the future.
Post-investment, besides the capital injection, Daiwa-SSIAM II will support the company in improving its corporate governance and financial systems, the implementation of its vision and execution strategy, and in finding potential international partners to achieve sustainable development.
Daiwa-SSIAM II, the second private equity fund of SSIAM, was jointly established by the two leading financial institutions in Japan and Vietnam in the third quarter of 2015. Having successfully conducted investment activities in Vietnam since 2009, Daiwa-SSIAM II aims to continue providing hands-on post-investment support to investee companies by utilizing the expertise, knowledge and networks of Daiwa and SSI.
The fund typically targets investments ranging from $4 to 6 million, investing primarily in a selected number of non-listed companies in manufacturing, consumer goods and services, and agriculture, as well as in sectors where strong growth is expected, driven by attractive demographics, rapid urbanization, the rising middle class and changes in lifestyle in the midst of deeper integration by Vietnam through globalization and trade.
In November 2015, Daiwa-SSIAM II invested $6 million in the Dong Hai JSC in the Mekong Delta’s Ben Tre province to implement the second phase of the Giao Long Paper Factory, which has a capacity of 660 tons per day.
SSIAM is a wholly-owned subsidiary of Saigon Securities Inc., a leading securities company in Vietnam, providing fund and portfolio management services to help individuals and institutions preserve and grow their wealth.
The Daiwa Corporate Investment Co. Ltd., a subsidiary of the Daiwa Securities Group, one of the leading financial services firms in Asia, operates core businesses such as retail, global markets, global investment banking, asset management, and investment.