Mr. Ming Lu, Asia Pacific Director of KKR.

VietNamNet Bridge – An American investment fund has doubled its investment in Masan Consumer Corporation based on its trust in the potential development of Vietnam.

KKR & Co. from the U.S. recently passed a decision to invest $200 million in Masan Consumer Corporation. So far, this is the highest investment from a private investment fund in Vietnam.

According to the Wall Street Journal, today more than 90% of households in Vietnam use at least one of Masan Consumer Corp’s products such as fish sauce, noodles and instant coffee. As a result, revenue of Masan increased from $31 million in 2007 to approximately $500 million last year. Of which, Q3 profit of 2012 increased 50% compared to the same period in 2011, to about $36 million.

This is not the first time KKR pouring money into Masan. In April 2011, this fund invested $159 million into the company. KKR currently has two people in the Board of Directors of Masan. "The doubling of our investment in less than two years has demonstrated our confidence in the growth potential of Vietnam,” said Mr. Ming Lu, Asia Pacific Director of KKR.

Masan’s General Director Truong Cong Thang said that the $200 million investment will help the company diversify products, targeting the fast-growing consumer goods.

KKR's investment comes when the Vietnamese economy experienced a year of the slowest growth in 13 years. The NPL ratio rose high, making domestic banks afraid to lend. However, Vietnam has set a target growth of FDI from $13 to 14 billion this year, compared to $13.1 billion last year.

The $200 million investment from KKR may be the biggest investment from a private fund for Vietnam, according to Dealogic, a data provider. Masan Consumer is a subsidiary of Masan Group. Since April 2011 when KKR poured its first investment, the company's shares have risen 30%.

The deal of KKR is in its strategic investment in Southeast Asia, in order to catch up the growth in this area. Last year, KKR set up offices in Singapore for market research. So far, KKR has poured $5.2 billion in the Asia-Pacific region, 20% of this is for four companies in Southeast Asia.

Recently many foreign strategic investors expressed a desire to contribute capital to local firms. Japan's largest bank Tokyo-Mitsubishi UFJ has just acquired 20% shares of Vietinbank with a total value of up to $743 million, marking a record of M & A in the banking and financial sector in Vietnam. Meanwhile, Sumitomo Life acquired 18% stake in Bao Viet, the largest insurance company in Vietnam, from HSBC with a value of $340 million.

Compiled by S. Tung