VietNamNet Bridge – Investment funds are now eyeing wooden furniture companies’ shares since the wooden furniture processing industry proves to be the one which has seen the highest growth rate in the last few years.
According to the Ministry of Trade, Vietnam-made wooden furniture products are present in 120 countries throughout the world. 28% of exports go to Europe, 24% to Japan, and 20% to the US.
Tran Quoc Manh, Deputy Chairman of the HCM City Fine Arts and Wooden Furniture Processors’ Association, and Director of Sadaco, said that the industry had been witnessing the growth rate of 40-50% per annum in the last few years. Vietnamese companies can export products directly and not go through third parties.
“It is the right time for investment funds to inject money in wooden furniture companies, which have a high growth rate and low risk,” Mr Manh said.
Sadaco, for example, has signed a cooperation agreement with VinaCapital, while another fund is also seeking to buy Sadaco shares.
In February 2007, Aureos decided to make a $3mil investment in Truong Thanh Wooden Furniture Industrial Company to become the biggest strategic shareholder. Truong Thanh later received a lot of other offers from both domestic and foreign funds, including VinaCapital, Indochina Capital and Bao Viet Securities.
Truong Thanh had the total turnover of VND170bil 9$10.62mil) in 2005, and the figure rose to VND326bil ($20.37mil) in 2006. In the first quarter of 2007 alone, the turnover was VND173bil ($10.81mil).
The Denmark-based Penm has also signed an agreement on strategic cooperation with the Duc Thanh Wooden Furniture Processing Company. The deal was inked just two days after the fund set up a representative office in HCM City.
Prior to that, Duc Thanh had a foreign strategic shareholder, Mekong Enterprise Fund Ltd.
The Thuan An Wooden Furniture Processing Company, which is going to list on the bourse in June, has reported that the company has signed an agreement on investment in the company with two foreign based funds.
(Source: Viet Nam Net) | 
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