Vietnam Digest: Warburg, Becamex IDC launch JV; Mirae-Prevoir venture goes live

Global private equity firm Warburg Pincus and Vietnam’s real estate and infrastructure major Becamex IDC Corp (Becamex) has officially launched the joint venture while South Korea’s Mirae Asset Life Insurance has also commenced operations of its merged entity with Prevoir Vietnam Life Insurance.

Warburg Pincus, Becamex IDC launch $200m JV

Global private equity firm Warburg Pincus and Vietnam’s real estate and infrastructure major Becamex IDC Corp (Becamex) has officially launched the joint venture BW Industrial Development Joint Stock Company (BW Industrial) on May 15.

Both sides announced the JV in February. The JV will develop industrial real estate projects with over 2,000,000 sq m and an initial investment of over $200 million, becoming the largest ‘for-rent’ industrial and logistics developer in Vietnam.

BW Industrial was seeded with eight projects across five cities in each of Vietnam’s strategic industrial hubs in the North and South, including Binh Duong, Dong Nai, Hai Phong, Hai Duong and Bac Ninh.

As Vietnamese enterprises steadily improve the technical expertise, there is tremendous opportunity for firms like BW Industrial to develop and provide the much-needed industrial properties to support such initiatives, said C.K. Tong, CEO of BW Industrial.

BW Industrial’s plan is to create the logistics and industrial platform of choice for leading MNCs, 3PLs and e-commerce companies, according to Mr. Jeffrey Perlman, Managing Director and Head of Southeast Asia of Warburg Pincus.

Vietnam was one of the maiden markets when Warburg Pincus started investing in Southeast Asia in 2013. It recently agreed to invest over $370 million in Vietnam Technological and Commercial Joint Stock Bank (Techcombank), marking the largest ever PE investment in Vietnam to date.

SK’s Mirae Asset Life launches merged insurance entity in Vietnam

South Korea’s Mirae Asset Life Insurance has officially launched its merged entity with Prevoir Vietnam Life Insurance, marking its foray into rapidly growing Southeast Asian financial market.

Last year, Mirae Asset Life Insurance entered an agreement to purchase 50 per cent equity in Prevoir Vietnam Life Insurance for $48.5 million, becoming the largest shareholder in the new entity, according to a report by Pulse News.

Prevoir Vietnam is reportedly the 10th largest life insurer in the Southeast Asian country. It currently focuses on bancassurance in alliance with seven local banks.

With this, Mirae Asset Life Insurance follows many other companies under the Mirae umbrella to have a presence in Vietnamese including Mirae Asset Daewoo Co., Mirae Asset Global Investments Co., Mirae Asset Capital Co.

Early this year, Mirae Asset Global Investments inked a joint venture agreement with a subsidiary of Vietnam’s sovereign wealth fund State Capital Investment Corporation (SCIC).

By Quynh Nguyen

Source: dealstreetasia