What is the market size of the private equity industry in Vietnam?

Lakshygagda
2 min readJul 15, 2024

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Vietnam private equity market size is projected to exhibit a growth rate (CAGR) of 10.10% during 2024–2032. Economic growth prospects, favorable demographics, government support, and strategic advantages, are primarily driving the market growth.

Private equity refers to a form of investment where funds are directly invested into private companies or are used to buy out public companies, resulting in the delisting of public equity. These investments are typically made by institutional investors such as pension funds, endowments, and private equity firms.

The main objective of private equity is to acquire significant stakes in companies, enhancing their value over time through various strategies, including operational improvements, strategic guidance, and financial restructuring. Unlike public equity, private equity investments are not traded on public exchanges, making them less liquid but potentially more profitable in the long run.

Private equity firms often pool capital from multiple investors and utilize leveraged buyouts (LBOs) to acquire companies, aiming to increase the company’s profitability before eventually selling it for a profit.

Trends and Drivers:

The Vietnam private equity market is experiencing significant growth, driven by a combination of favorable economic conditions, government reforms, and an increasing influx of foreign investment. Vietnam’s robust economic growth, characterized by a rising middle class and a young, dynamic workforce, creates a conducive environment for private equity investments.

The government’s commitment to economic reform, including initiatives to improve the business environment and reduce regulatory hurdles, further supports market expansion. Additionally, Vietnam’s strategic location and participation in numerous free trade agreements make it an attractive destination for investors seeking to capitalize on the region’s growth potential. Key sectors attracting private equity investments include technology, healthcare, consumer goods, and renewable energy, reflecting the broader trends of digital transformation, increasing healthcare demand, and a shift towards sustainable development.

The emergence of local private equity firms and a growing number of startups are also contributing to a vibrant investment ecosystem. Furthermore, the use of advanced technologies and data analytics in investment strategies is enhancing decision-making processes, leading to more successful investment outcomes. These factors are contributing positively to the Vietnam private equity market.

Market Analysis and Segmentation Report 2024–2032

The report segmented the market based on fund type.

Fund Type Insights:

  • Buyout
  • Venture Capital (VCs)
  • Real Estate
  • Infrastructure
  • Others

Regional Insights:

  • Northern Vietnam
  • Central Vietnam
  • Southern Vietnam

Key highlights of the report:

  • Market Performance (2018–2023)
  • Market Outlook (2024- 2032)
  • Porter’s Five Forces Analysis
  • Market Drivers and Success Factors
  • SWOT Analysis
  • Value Chain
  • Comprehensive Mapping of the Competitive Landscape

Source Information by IMARC Group:

https://www.imarcgroup.com/vietnam-private-equity-market

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