New foreign capital will help Con Cung chain to open about 1,000 stores by 2020
Many Vietnamese firms have received capital from foreign funds, which have contributed to increasing their competitiveness significantly.
Pharmaceutical company Pymepharco has had the participation ofStada Service Holding B.V (Stada) since 2008 and thanks to the technology transfer from this strategic partner, Pymepharco has succeeded in upgrading its production lines to satisfy the GMP-EU standards.
By complying with GMP-EU standards, Pymepharco’s Cephalosporin antibiotic tablets are eligible to be licensed for export to European markets. In particular, Pymepharco has gained a huge advantage in the bidding for producing drugs in Generic Group 1 and 2 thanks to its competitive prices against imported products.
In addition, owning modern production technology has opened up further opportunities for Pymepharco to manufacture franchised products from leading pharmaceutical companies in the world, such as Stada (Germany) and EG LABO (France).
The same move was also seen with another drug producer, Hau Giang Pharmaceutical Co (DHG). To improve competitiveness in the market, DHG has found ways to proceed through the cooperation with foreign counterparts.
Joining hand with Japan’s Taiso Group, DHG can now compete with big rivals thanks to the Japanese firm’s large distribution network, capital and experience.
In the finance sector, lending platform Tima has also gained significant success after raising a Series A round in 2016 from Dunearn Singapore Fund and G Capital. From a small company with 25 employees, Tima was named one of the top 10 software and IT service companies in Vietnam by the Vietnam Software Association in April, and has 23,775 lenders and 2,133,405 borrowers on its platforms.
Tima has recently continued raising US$3 million in Series B funding from Belt Road Capital Management, a Greater Mekong-focused private equity fund.
Tima General Director Tran The Vinh said the new funding will be used for expansion in Vietnam’s 63 cities and provinces, besides investing more in technologies and human resources to quickly and conveniently connect borrowers and lenders with financial technologies.
More investment sources
Seeing the importance of the foreign investment sources, many Vietnamese firms have decided to lift their foreign ownership ratio to get more investment.
Recently, shareholders of Pymepharco approved to raise the stake of Stada in the firm from 49 percent to 72 percent, aiming to help Pymepharco become the largest pharmaceutical manufacturer in Vietnam.
Maternal and baby products chain Con Cung in late September also decided to receive the second round of investment from DAIWA-SSIAM Vietnam Growth Fund II L.P. This leading retail chain for maternal and baby products in Vietnam expects to use the capital for expanding to about 1,000 stores by 2020.
Vinh from Tima said that his company is also considering Series C funding proposals from several big funds and investors who could add value to the company for its ambitious growth and expansion plans.
According to experts, foreign investment funds will continuously pour capital into Vietnam, which have affirmed the attractiveness of the country’s business and investment environment, as well as provided more opportunities for Vietnamese businesses.
Expert Nguyen Tri Hieu said that foreign funds not only help Vietnam resolve financial problems in order to implement strategies to expand their business. They also provide domestic businesses with opportunities to learn about management, market access and expansion, and human resource development.
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