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Vietnam Entertainment Fund founded

Released at: 08:44, 29/07/2018

Vietnam Entertainment Fund founded

Photo from saobiz.net

Fund to increase value through medium- and long-term investments in entertainment sector.

by Nghi Do

The Vietnam Entertainment Fund (VEF) has been launched with the aim of increasing value through medium- and long-term investments in the entertainment sector.

The five shareholders of VEF are Yearh1CMG, R&B Capital Group, Surfing Holdings, MBC Studio, and Green International.

The open-ended fund operates under the holding form, meaning it will hold shares of other firms.

Established with consultation from VinaCapital Fund Management, VEF will operate to maximize profits for investors by increasing the capital value and dividend yield from initial investments, such as with intellectual property assets of films and fixed assets.

It will diversify its fields of operation to reduce risks and ensure investment objectives are met.

With a flexible investment form, appropriate financial capacity, transparent information, and safety for investors, VEF expects to attract the attention of businesses and investors.

The fund sets a minimum income growth plan of 8 per cent per year and a maximum of 10.5 per cent per year for the 2018-2019 period, and minimum revenue growth of 10.5 per cent for 2020-2022.

Other financial benefits for investors include the right to buy preferred stocks at the time of issuance, as well as stock value expecting to climb at least five-fold on the initial investment after three years.

According to its plan, the fund will invest in 30 A-class film projects and 20 B-class projects, purchase all films released in the 2013-2017 period, advertise projects in 40 cinema complexes by 2020, and own a new cinema complex by 2022.

The fund will not participate in production but provide support in capital, media and marketing consulting for film producers. Its goal is to invest in an average of 20 film projects each year.

Shares in VEF are hoped to be offered at an initial public offering (IPO) five years after its establishment.

Average revenue in the film industry is currently VND2.3 trillion ($99 million) per year and is expected to reach VND5.6 trillion ($241.1 million). The attractive profit opportunity in Vietnam’s entertainment industry is attributed to average growth reaching 25 per cent per year.

Surfing Holdings is an investment holding company in real estate, hotels, information technology, TV commercial production, sports advertising, and film production. MBC Studio is a TV program production company belonging to the MAC Media Advertising Development JSC (MCV).

Yeah1CMG was founded by YEG (Yeah1 Corporation, a newly listed corporation), and operates in the fields of film, television, digital and publishing and owns a YouTube multi-channel network (MCN) and CMG Asia. R&B Capital Group is a news producer.

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