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Mekong Capital's vision for Vietnam's future is centered around creating a more prosperous and sustainable society. They aim to do this by investing in companies that have the potential to drive positive change.
Mekong Capital was founded in 2008 by Chris Morris, an American entrepreneur who fell in love with Vietnam's entrepreneurial spirit. The firm has since grown to become one of the country's leading private equity investors.
Their vision is built on the idea that a prosperous Vietnam is one where businesses are driven by a sense of social responsibility. They believe that by investing in companies that prioritize both profit and people, they can create a more equitable and sustainable society.
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Investment Philosophy and Strategy
At Mekong Capital, investments are made in proven business models, with a focus on organizing management teams to grow the business to new levels.
They specialize in identifying strong management teams, as seen in their successful portfolio companies Golden Gate and MobileWorld, which have grown sustainably due to their teams.
Mekong Capital has made 38 investments so far, with 7 of them leading to success.
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Investments
Mekong Capital has made 38 investments so far, leading in 7 of them. These investments are in various Vietnamese companies that sell consumer products sourced/manufactured and sold in the Vietnamese market.
Their latest investment was in Mutosi Group, a Vietnamese manufacturer and distributor of household products, water, gas and environmental care.
Their Venture Round announced on June 9, 2021, was met with a $10 Million investment from Mekong Capital alone.
They also invested in the Vietnamese Chocolate company Marou Chocolate, specializing in single-origin Vietnam dark chocolate sourced from local cacao farmers.
Mekong Capital has invested an undisclosed amount of private equity in the company, as per the announcement on March 31, 2021.
MobileWorld is Mekong's largest return to date.
MobileWorld sees about 7% of their sales come from online, and they have strong integration and offer features like 30-minute delivery nationwide.
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What Is Your Investment Philosophy?
At its core, our investment philosophy is centered around proven business models. We've found that a solid management team is crucial for success, as evidenced by our thirty investments.
A strong management team is often the deciding factor between a company's growth and stagnation. We've seen it time and time again, with companies like Golden Gate and MobileWorld thriving due to their talented teams.
Investing in the right people is key, and we've learned that a good team can make all the difference in a company's long-term success.
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Vietnam Investment
Vietnam is rapidly catching up with global standards in business practices, especially in the next few years. The internet and global integration will speed up modernization, and existing resources are the only thing holding Vietnam back.
In the next ten years, Vietnam will see more entrepreneurial activity, particularly among younger entrepreneurs. State-owned enterprises will shrink as entrepreneurs take the lead, driven by a special spirit and energy in the country.
Mekong Capital's focus is on industries like food and beverage, fast-moving consumer goods, and retail, which are still behind global best practices but improving every year.
Vietnam in 10 Years
In just ten years, Vietnam will see a significant increase in entrepreneurial activity, with most companies being founded by entrepreneurs rather than state-owned enterprises.
The country's special spirit and energy will continue to drive innovation and progress, fueled by the internet and global integration.
Business practices will rapidly catch up with global standards, although Vietnam will still be behind in some areas.
The gap between Vietnam and other countries will narrow considerably, thanks to the country's rapid modernization.
Mekong Capital focuses on industries such as food and beverage, fast moving consumer goods, and retail, which are already showing signs of improvement.
The lack of serial entrepreneurs who have set up multiple legitimate businesses is a major missing piece in Vietnam's entrepreneurial ecosystem.
Most entrepreneurs in Vietnam are still on their first business, lacking the experience and expertise of serial entrepreneurs.
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Country's Biggest Rice Producer Boosts Efficiency with New Farming Models
The Cửu Long (Mekong) Delta province of Kiên Giang is leading the way in rice production efficiency. By rotating rice cultivation and shrimp breeding on the same fields, they've seen a significant rise in production efficiency.
This innovative approach has allowed farmers to make the most of their land and resources. Kiên Giang has been a pioneer in adopting new farming models.
By switching to other crops on unproductive rice fields, farmers can avoid wasting land and resources. This strategy has been particularly effective in the province.
The results are impressive, with a notable increase in production efficiency.
Start-Up Education Falls Short
The start-up frenzy in Việt Nam began around two years ago when the Government showed its support for the start-up community. This was a significant move towards creating a more favorable environment for entrepreneurs.
The Government's project, titled "Supporting the National Innovation Startup Ecosystem by 2025", also known as Project 844, was a major step towards achieving this goal. This project aims to support around 2,000 high-tech start-ups.
However, despite these efforts, start-up education in Việt Nam still falls short. This is evident in the fact that the project's budget of VNĐ2 trillion (US$88.8 million) is a significant investment, but it may not be enough to address the educational needs of all start-ups.
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Frequently Asked Questions
Who is the owner of Mekong Capital?
Mekong Capital was founded by Chris Freund in 2001. Chris Freund is the founder and owner of Mekong Capital.
What is the most recent fund Mekong Capital?
Mekong Capital's most recent fund, Mekong Enterprise Fund IV, is a $246 million fund that closed in 2021. It invests in diverse sectors, including food, biotechnology, and animal feed.
Sources
- https://asiatechdaily.com/the-top-vcs-in-vietnam-mekong-capital-vietnam-focused-private-equity-firm-38-investments/
- https://en.wikipedia.org/wiki/Mekong_Capital
- https://vietcetera.com/en/mekong-capital-what-this-private-equity-firm-looks-for-in-vietnams-rise
- https://vneconomy.vn/mekong-capital-dau-tu-hon-10-trieu-usd-vao-cong-ty-moi-gioi-bat-dong-san.htm
- https://vietnamnews.vn/opinion-in-the-spotlight/1689844/mekong-delta-farmers-expand-nature-based-farming-models.html
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