The Challenge and Opportunity of Private Equity in Vietnam
Mekong Capital manages private equity funds with the objective of achieving high absolute net IRRs. We believe that it is possible for private equity firms to generate high absolute long-term returns regardless of external circumstances, as value can be created in any economic environment if companies execute well on their plans.
Vietnam provides rapid growth in GDP and consumer demand, providing extensive growth opportunities for companies in general. At the same time, most sectors are fragmented and most companies in most sectors have not yet applied many international best practices. The companies that are most effective at continuously building strong management and leadership on an ongoing basis have a sustainable competitive advantage in a market in which strong corporate management and leadership are scarce. This empowers those companies to emerge as the leaders in their sectors and achieve attractive growth in net profit.