“We have invested in HSG shares for a long time. But for Ca Na steel project, we don’t really support it unless the group can prove that it is environmentally feasible. Currently, the company has given insufficient information and we are still looking into the project,” said Nguyen Hoai Thu, managing director of VCG Partners Vietnam Fund (VVF) under VinaCapital.

 

Speaking to reporters at an annual investor conference in HCMC on October 13, Thu said VinaCapital and HSG representatives have met to discuss the project in terms of cost and environment protection issues.

 

The project has yet to obtain official approval and VinaCapital will support it if it can bring financial benefits to investors. However, VinaCapital, concerned about environmental issues, has asked HSG serious questions.

 

VinaCapital as a long-term investor is looking forward to hearing from HSG and will consider related information before making a decision, Thu added.

 

This is a normal reaction of professional investors to environmental issues. Speaking to the media, representatives of many investment funds have expressed hesitation at enterprises with environmental threats despite their high profitability.

 

Don Lam, CEO of VinaCapital, said the group continues weighing investment opportunities at State-run and private enterprises.

 

The private sector has generated good profit, at over 20%, from 40 investments VinaCapital has completely divested. The group is eyeing private firms in consumer goods and infrastructure sectors.

“Private firms now account for 12% of the group’s portfolio and the figure is expected to rise to 20% in the next one or two years. We are considering over 10 deals with a combined value of over US$100 million”, he added.

 

The conference, which runs from October 12-14, has drawn over 150 investors. It features updates on Vietnam’s equitization process and other investment deals.

 

Representatives of foreign investment groups at the event discussed investment prospects with local enterprises such as Vinamilk, Vietjet, Novaland, Dat Viet JSC, Siam Brothers Vietnam and Coteccons.

 

Huynh Cach Mang, vice chairman of HCMC, said the city reported gross domestic product (GDP) growth of 7.76% in the January-September period, higher than the nation’s figure of 5.93%.

 

Total fresh and additional foreign direct investment (FDI) approvals in the city in the period were US$1.1 billion while the HCMC stock market reported over US$63 billion in capitalization.