VinaCapital invests Vietnam industrial supplier

VinaCapital will contribute $17 million to the investment, taking a stake of undisclosed size and nominating two board members. The firm is investing via its Vietnam Opportunity Fund (VOF), a London-listed vehicle regulated by the Vietnam government.

Ngoc Nghia specializes in recyclable, lightweight, resealable and shatter-resistant plastics used in the food, beverage, home, and personal care segments. The company claims annual revenue grew 15.3% between 2016 and 2018 and is on track to reach $74 million in 2019 within the core plastics production business. Clients include Unilever, Coca-Cola, Pepsi, and Vinamilk.

The Ho Chi Minh City-based company plans to leverage the pending investment to expand operations in northern Vietnam and broaden its manufacturing capabilities. Andy Ho, a managing director of VOF, described the company as a “perfect example” of a market leader serving sectors that are benefitting from Vietnam's strong domestic consumption story.

“Its management team is experienced and recognizes the need to innovate into new areas such as packaging for milk and alcoholic beverages,” Ho said in a release. “They evolve with the market, which is why they have invested in advanced equipment and have a strong commitment to research and development focused on minimizing environmental impact.”

VinaCapital claims $3.3 billion in assets under management in Vietnam across a range of asset classes including private equity, real estate, fixed income, and venture capital. VOF, which closed at $475 million in 2006, is the firm’s flagship vehicle. It makes buyout and growth capital investments in both public and private equities in consumer, financial and industrial sectors.

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• Topics
• Southeast Asia
• Industrials
• Expansion
• Vietnam
• VinaCapital
• manufacturing