A visual from An Cuong's website.
Vietnam Opportunity Fund (VOF), a fund run by Ho Chi Minh City
-based money manager VinaCapital, and DEG, a member of KfW Group, are finalizing an investment of nearly $30 million in An Cuong Wood Working JSC (An Cuong).
VinaCapital will put 70% of the capital in the deal while the German firm will finance the rest.
An Cuong’s consistent growth rate of 30%-35% per year over the past several years is the main factor behind the investment. “An Cuong has been on our radar for some time,” said Don Lam, CEO of VinaCapital.
An Cuong posted an annual turnover of over $70 million in 2015 with dominant market shares of over 50% in branded MFC panel and 70% in branded laminate panel, VinaCapital said in a press release.
The company now operates 10 showrooms across Vietnam, as well as representative offices in Malaysia, Japan, US, Canada and Australia.
DEG plans to commit as much as $100 million for Vietnamese firms over the next few years, Deal Street Asia cited Herbert Baumgartner, director of DEG’s representative office in Bangkok, as saying.