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Vietnam Newsletter - April 2024




Market Summary


In April 2024, the Vietnamese market witnessed transactions totaling around USD126m. Notably, the Consumer & Retail, Healthcare, and Technology sectors were prominently involved:

  • In the Consumer & Retail sector, CDH Investments completed an investment for a minority stake in Bach Hoa Xanh Investment.     

  • Healthcare sector featured a notable transaction where Warburg Pincus announced its investment in Xuyen A private general hospital group in April 2024. 

  • The Technology sector highlighted an investment, with a SaaS company Finviet receiving an undisclosed amount from Japan’s Sojitz Corporation.


Aggregate Deals Value = USD126m

 

This month's top deals


Consumer & Retail


Bach Hoa Xanh Trading secures investment from CDH Investment Management, acquiring 5% stake for USD72 million

CDH Investments, through Green Bee 2 Private Limited, recently acquired a minority stake in Bach Hoa Xanh Technology and Investment JSC, a prominent grocery retail chain in Vietnam. With around 1,700 stores across southern and south-central Vietnam, Bach Hoa Xanh offers a diverse range of high-quality products in hygienic environments at competitive prices. This investment underscores CDH Investments' commitment to Vietnam's growing organized grocery retail sector. Mobile World Investment Corporation remains the controlling shareholder of Bach Hoa Xanh, alongside CDH Investments and the company's management. Nguyen Duc Tai, founder and chairman of Mobile World, welcomes CDH Investments as a partner, highlighting their history of productive collaboration and shared vision for the company's growth.


Article link:

Bach Hoa Xanh Trading secures investment from CDH Investment Management, acquiring 5% stake


Homefarm International secures USD1.8 million investment from Mitsubishi Shokuhin Co., Ltd.

Mitsubishi Shokunin, the food arm of the Japanese keiretsu Mitsubishi, has invested USD1.8 million in Homefarm, a Vietnamese food import start-up, aiming to expand demand and market Japanese food in overseas markets, particularly in Vietnam. This investment aligns with Mitsubishi Shokunin's strategy to focus on international markets amidst domestic market challenges. The firm aims to leverage Homefarm's strengths, including its growing store network and focus on importing fresh salmon and frozen beef, to drive innovation and growth.


Article link:

Homefarm International secures USD1.8 million investment from Mitsubishi Shokuhin Co., Ltd.


Digiworld Corporation agreed to acquire a 50.9% stake in B2X Vietnam Holding Joint Stock Company from B2X Care Solutions GmbH

Digiworld Corporation (DGW) announced its decision in April 24 to raise its ownership in B2X Vietnam Joint Stock Company from 49.1% to 100% by acquiring shares from B2X Care Solutions GmbH, with a value not surpassing VND30 billion. This strategic move aims to elevate after-sales service capabilities to international standards. B2X Vietnam, established in December 2017 as a joint venture between Digiworld and B2X Care Solutions GmbH, has an initial capital of VND6 billion. It operates warranty centers nationwide, serving major brands like Samsung, Xiaomi, and Acer, as well as retail chains including Dien May Xanh and FPT Shop.


Article link:

Digiworld Corporation agreed to acquire a 50.9% stake in B2X Vietnam Holding Joint Stock Company from B2X Care Solutions GmbH



Healthcare


Private equity firm Warburg Pincus announced on April 15, it is investing in Xuyen A private general hospital group

Warburg Pincus, renowned for its extensive investments in Vietnam, has solidified its position as the country's largest global private equity investor by backing Xuyen A, a leading healthcare player. Xuyen A, founded and led by Dr. Nguyen Van Chau, boasts a decade-long legacy of excellence in operating tertiary hospitals across southern Vietnam. This partnership aims to fuel Xuyen A's expansion and innovation in the healthcare sector. With a focus on enhancing care offerings and speciality services, Xuyen A inaugurates an oncology center at its flagship hospital, further cementing its commitment to providing comprehensive medical solutions. Warburg Pincus' strategic alliance with Xuyen A underscores its bullish outlook on Vietnam's healthcare landscape and its dedication to fostering sustainable growth in the region.


Article link:

Private equity firm Warburg Pincus announced on April 15 it is investing in Xuyen A private general hospital group



Technology


Finviet Technology Corporation secures funding round with Sojitz Corporation Investment

Sojitz Corporation has invested in Finviet Technology Corporation, a SaaS company in Vietnam introducing cashless payment smartphone apps and an online ordering platform for small-scale retail stores. Finviet aims to streamline supply chains and enhance convenience for retailers and consumers. With Vietnam's retail market expected to grow over 10% by 2027, Sojitz sees potential in Finviet's technology to enhance efficiency in the retail sector


Article link:

Finviet Technology Corporation secures funding round with Sojitz Corporation Investment

CNV secures USD1 million from Wavemaker Partners

Vietnamese digital marketing firm CNV secured a USD1 million funding round from Wavemaker Partners on April 9. CNV specializes in cloud-based business solutions and marketing services for MSMEs, SMEs, and corporations in Vietnam. The funding will propel CNV towards becoming a no-code sales and customer care platform, streamlining campaign launches and customer engagement. The funding reflects CNV's growth amidst Vietnam's dynamic business landscape and promising e-commerce sector. Notable achievements include a 250% increase in revenue, sending six million Zalo messages, and closing USD30 million in annual GMV over 94,000 orders.


Article link:

CNV secures USD1 million from Wavemaker Partners

Happynest has bagged a seed round led by Touchstone Partners

Touchstone Partners is leading a USD720,000 seed round in Happynest, Vietnam’s pioneering home and living community and social-commerce platform. Happynest offers a one-stop platform for home inspiration, professional connections, and purchasing home-related products. With a large community and extensive product range, Happynest aims to streamline home care processes. The investment will support Happynest in expanding its user base, growing its community, and developing innovative features. Touchstone Partners sees potential in Happynest's unique offerings to capitalize on the growing online furniture shopping market in Vietnam.


Article link:

Happynest has bagged a seed round led by Touchstone Partners


Agriculture & Food


Alterno secures USD1.5 million from leading impact and VC funds – the Radical Fund and TouchStone Partners

On April 2, Alterno achieved a major milestone in agricultural climate solutions by securing over USD1.5 million in an oversubscribed funding round, co-led by prominent impact and venture capital firms The Radical Fund (Singapore) and Touchstone Partners (Vietnam). Alterno offers an innovative sand battery thermal energy storage solution tailored for agricultural needs. This technology facilitates a shift towards low-carbon practices, yielding significant cost savings compared to traditional energy sources.


Article link:

Alterno secures USD1.5 million from leading impact and VC funds – the Radical Fund and TouchStone Partners


Note: Deal values include disclosed announced & closed deals with amounts restricted to the local scene i.e., amounts related to the Vietnam entity and/or business. Rumored deals are not included. Cross-posted deals are also adjusted to avoid double counting.


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