Fund invests in bird's nest products

HCM CITY — VinaCapital Viet Nam Opportunity Fund Limited (VOF) yesterday announced the acquisition of 20 equity stakes in the Yen Viet Joint Stock Company, a domestic bird's nest products developer.

The acquisition cost US$7 million, which VinaCapital will use to assist the company in strengthening its distribution channels, production capability and product development.

The fund will also help the company improve corporate governance and prepare for a listing on a Vietnamese or international stock exchange.

Andy Ho, Managing Director of VOF's Investment Manager, said that the partnership with Yen Viet earmarked it as a dominant player in the private equity investment market in Viet Nam.

"The consumer goods sector is particularly attractive given its growth prospects, and Yen Viet is a perfect example of Viet Nam's potential for high-margin, high-growth consumer products," he said.

The edible nests of swiftlets are considered a delicacy in many parts of East and Southeast Asia. The largest market is China, particularly Hong Kong, where bird's nests are used as part of traditional medical remedies. The nests are farmed or collected from caves without harm to the birds.

Yen Viet, which targets affluent clients with high disposable incomes, has increased the value of its brand by creating a popular bottled bird's nest drink.

VinaCapital Viet Nam Opportunity Fund Limited is one of three close-ended funds of asset management company VinaCapital. — VNS