Investment funds pave the way for businesses to go "big"

(Dan Tri) - The development journey of private enterprises is associated with the stages of market opening, in which initial capital plays a key role. Currently, Resolution 68 is expected to unblock the flow of capital, opening up breakthrough opportunities for enterprises.

Build a solid foundation

Many leading enterprises in the industry today have grown strongly thanks to the initial "seed capital", creating momentum for production expansion. Typically, in 2007, Hoa Phat started construction of an integrated steel production complex in Hai Duong with a capacity of 2.5 million tons/year of construction steel, thanks to equity capital of 47 million USD (equivalent to 5% of capitalization at that time) from VinaCapital's VOF fund. By 2024, Hoa Phat had increased its capacity to 8.5 million tons/year, affirming its leading position in the steel industry.

Another typical case is An Cuong Wood Company, which has gone from being a private enterprise in the domestic wood industry to confidently conquering demanding markets such as the US and Japan. The growth turning point must be mentioned in the investment of VinaCapital's fund as well as strategic investors since 2016, which has helped An Cuong significantly expand its production capacity, affirming its position on the international map.

According to An Cuong representative, the participation of capital flows from investment funds as well as strategic investors has helped the company build a solid foundation for sustainable development and further expansion in the global market.

Specifically, this capital has helped the company invest in modern production technology, such as automated production lines and green technology solutions. This not only increases production capacity but also improves product quality, meeting strict international standards.

Thanks to that, An Cuong has boldly built new showrooms, expanded its distribution network and joined global supply chains, approaching potential markets such as the US and Japan. The company has not only increased its competitiveness in the domestic market but also boosted its exports.

The participation of investment funds helps An Cuong Wood Joint Stock Company improve corporate governance and optimize operations (Photo: An Cuong)

“In addition, the participation of investment funds not only brings financial resources but also provides a network of relationships and strategic advice, helping An Cuong improve corporate governance and optimize operations,” said a company representative about the value that strategic investment capital brings.

The long-term growth orientation when the funds participate is equally important, with a common vision towards sustainability. As at An Cuong Wood, the major contribution of strategic shareholders is also the orientation towards sustainable consumption, promoting research and development activities of environmentally friendly products. “This not only strengthens the An Cuong brand but also attracts more attention from investors with a sustainable development orientation,” added the representative of An Cuong.

Towards a new era

Resolution 68 aims to achieve a private sector economic growth rate of 10-12% per year, playing the role of the main growth driver in the coming period. There are many specific goals such as doubling the number of private enterprises from 1 million to 2 million by 2030 and 3 million by 2045, with the ability to compete both regionally and internationally. Vietnam will also have more private enterprises that are strong in capital, technology, systems and proactively participate in the global production and supply chain.

With successful lessons from businesses that grew strongly in the previous period, along with specific incentives stated in Resolution 68, Ms. Nguyen Thi Dieu Phuong, Deputy CEO of VinaCapital Group, expressed confidence that the vision of building a new generation of strong and potential private enterprises is completely feasible.

From a business perspective, An Cuong representative believes that Resolution 68 is truly a strong driving force for investment funds to invest in the private sector in Vietnam. The Resolution brings about revolutionary changes in thinking and policy, with specific solutions to improve the business environment, thereby helping to increase access to capital and reduce barriers for private enterprises.

“For An Cuong, a wood industry enterprise with a need to invest in technology, expand the market and develop sustainably, these policies not only help us access capital more easily but also create opportunities to attract investment funds interested in enterprises with the potential to participate in the global value chain. Resolution 68 is not only a "shower" to relieve capital difficulties but also a "runway" for enterprises like An Cuong to take off and develop more strongly in the context of international competition," said a representative of An Cuong.

In the context of an open market, private enterprises face great opportunities to attract capital flows for value growth from investment funds such as VinaCapital. With potential sectors and businesses waiting to be nurtured, the prospects for strong and sustainable development of the business ecosystem are quite open.

“Resolution 68 does not change VinaCapital’s criteria for selecting investment enterprises, but contributes to strengthening our confidence in the private economic sector, encouraging us to continue to seek and accompany potential enterprises, contributing to promoting the strong development of Vietnam’s private economy, as we have been doing for over 20 years,” said Ms. Phuong.

Source: https://dantri.com.vn/kinh-doanh/quy-dau-tu-mo-duong-cho-doanh-nghiep-ra-bien-lon-20250725150301648.htm