VinaCapital-led consortium to invest $21.4m in packaging firm Ngoc Nghia

An investor consortium led by Vietnam-based asset management firm VinaCapital has agreed to invest $21.4 million in local plastic packaging company Ngoc Nghia.

In a statement issued on Thursday, VinaCapital said it will invest $17 million through its Vietnam Opportunity Fund (VOF) in the packaging company and receive two seats on Ngoc Nghia’s board.

Ho Chi Minh City-based Ngoc Nghia will use the fresh funding to expand its manufacturing capabilities and market reach, particularly in northern Vietnam.

Claiming to be Vietnam’s biggest plastic packaging production business, Ngoc Nghia has an annual output of 3.7 billion preforms, bottles and closures at three production sites. The Ho Chi Minh City-based firm has seen its revenue grow at a compound annual growth rate (CAGR) of 15.3 per cent between 2016 and 2018 and expects to garner this year’s revenue of $74 million from its core PET (polyethylene terephthalate) business.

Founded in 1993, Ngoc Nghia has been catering to food and beverage brands and home and personal care product manufacturers such as Unilever, Coca-Cola, Pepsi and Vinamilk.

The dynamic growth of the local consumer goods sector, buoyed by Vietnam’s rapid urbanisation and increasing household spending, has been the main driver for the PET packaging segment’s outperforming 15.9 per cent CAGR during 2010-2017, according to VinaCapital.

“Ngoc Nghia is the perfect example of a market leading company we like to invest in. It is well-established and serves some of the sectors that are benefitting from Vietnam’s strong domestic consumption story,” said VOF managing director Andy Ho.

Most of VinaCapital’s private equity investments are done by VOF, whose most recent transactions include property and healthcare companies Ricons, CenLand and Tam Tri Medical.

VinaCapital, which manages $3.3 billion in assets, also runs a venture capital arm, VinaCapital Ventures, which has invested in seven startups. The VC unit has been backed by Mirae Asset-Naver Asia Growth Fund.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.