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Vietnam Investments (VI) Fund III

Project Result / Case Study | 9 January 2018

ADB will provide an equity investment of up to $20 million in VI (Vietnam Investments) Fund III, L.P. to make equity and equity-linked investments in middle-market companies and small and medium-sized enterprises primarily in Viet Nam. Such investments in Cambodia, the Lao People’s Democratic Republic, and Myanmar are also envisaged.

Fund manager

Vietnam Investments Group

ADB assistance

$20 million equity investment

Key features

  • The fund is aimed at making equity and equity-linked investments in middle-market companies and small and medium-sized enterprises (SMEs), primarily in Viet Nam.
  • Similar investments in Cambodia, Lao People’s Democratic Republic (Lao PDR), and Myanmar are also envisaged.
  • The investment is expected to sustain the development of capital markets through private equity investments.
  • It will improve liquidity and demonstrate the viability of private equity investment for larger and institutional investors.
  • In addition, the investment will enhance job creation in middle-market companies and SMEs through strategic and operational guidance from the fund manager, and injections of capital to allow growth in local businesses.

ADB’s value addition

  • Promote the growth of private equity funds in Cambodia, Lao PDR, Myanmar, and Viet Nam, which still struggle to raise capital, particularly from foreign investors. ADB’s participation will send a positive signal to the markets and highlight the capital needs of privately owned middle-market companies and SMEs in these countries.
  • Encourage the general partner to ensure that its investee companies comply with the highest environment and social safeguards. ADB, as a member of the advisory committee, will assist in providing oversight of the fund’s governance.

Date approved

15 November 2016

This case study is originally published in Asian Development Bank Private Sector Operations, a brochure describing the work of ADB's Private Sector Operations Department, its main goal, sector focus, portfolios, and case studies on projects approved in 2016.