VinaCapital leads $30m round for Vietnam's An Cuong

German development finance institution DEG also participated in the round, according to a release. An Cuong will use the capital to accelerate its growth within Vietnam and overseas. DEG will also support the company's ongoing development of a sustainable environmental and social practices action plan.

Founded in 1994, An Cuong manufactures wood and laminate paneling, flooring, and furniture for brands in Southeast Asia, Japan, Europe and the US. The company employs 1,300 people, operating a factory and 10 showrooms in Vietnam, along with representative offices in Malaysia, Japan, the US, Canada and Australia.

An Cuong reported annual growth rates of 30-35% over the past several years, with turnover of more than $70 million in 2015. The company claims 50% of the Vietnamese market for melamine faced chipboard, widely used in office furniture, and 70% of the market in branded laminate panel.

"One of the reasons we have entered into this transaction is because these two organizations bring not only capital, but expertise and a track record of working with their investees," said An Cuong CEO Le Duc Nghia. "We are also gratified that our efforts to operate the company to the highest standards, be it in our environmental, sourcing or labor practices, have been recognized by DEG, which attributes great importance to these issues when considering an investment."

VinaCapital has a diversified portfolio of $1.4 billion in assets under management, in a range of asset classes including private equity, venture capital, real estate and fixed income. The An Cuong investment was made from its Vietnam Opportunity Fund, an open-ended fund launched in 2003 and with a current net asset value of $747 million. The fund invests in foreign-invested Vietnamese private companies or state-owned enterprises to help them restructure and enhance their value.

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• Topics
• Southeast Asia
• Consumer
• Industrials
• Expansion
• Vietnam
• VinaCapital
• manufacturing
• Growth capital