Experts observe that since Vietnam initiated "Doi Moi" and opened its economy, many private enterprises have seized growth opportunities. They have not only expanded production and enhanced management capacity but also transitioned into publicly listed companies with established brands and strong market positions.

KIDO Group exemplifies this transformation. From a family-run confectionery business, it has evolved into a diversified food corporation listed on the stock exchange. KIDO is known to millions of Vietnamese for its household consumer brands, while the market recognizes its mergers and acquisitions (M&A) that have fueled the group's expansion.

KIDO's products. Photo: KIDO

KIDO's products. Photo: KIDO

KIDO's decision to divest from its leading confectionery market position a decade ago was a bold move that paved the way for a strategic shift. Its current success reflects the management's vision and the timely support from domestic investment funds, including VinaCapital.

A KIDO representative explained that VinaCapital invested when the company was still family-owned. Beyond capital, the fund assisted in modernizing the management model, facilitating the company's transformation into a publicly listed entity on the HoSE. This funding enabled the group to expand production, develop new products, extend its value chain, upgrade management, and restructure when necessary.

This substantial investment also allowed KIDO to execute successful M&A deals, from acquiring Unilever's Wall's ice cream factory over 20 years ago to expanding into fast food with Banh Bao Tho Phat.

"This demonstrates the crucial role investment funds have played in our development over the past two decades," the KIDO representative stated.

Besides KIDO, numerous other Vietnamese businesses have flourished with initial funding from investment funds, becoming leading names. These investments typically target early-stage, small-scale businesses with high growth potential, stemming from market opportunities and leadership capabilities. Such well-timed and targeted investments, combined with strategic values, have propelled these businesses toward success.

The KIDO representative added that long-term investment funds like VinaCapital also provide expertise in corporate governance, improve strategic decision-making, enhance risk management, and increase transparency. Leveraging their international networks, these funds connect businesses with domestic and foreign partners. These non-financial contributions have helped KIDO maintain its leading position in Vietnam's consumer goods sector.

Anticipating a new wave of transformation

Resolution 68 sets a target of 10-12% annual growth for the private sector. Specific goals include doubling the number of private enterprises from one million to two million by 2030 and three million by 2045, enhancing competitiveness both regionally and internationally. Vietnam aims to foster larger private enterprises with strong capital, technology, and systems, actively participating in global supply chains.

From a business perspective, the KIDO representative views Resolution 68 as a positive signal, boosting domestic investment and reshaping the role of the private sector in the economy. The resolution establishes a clearer and more transparent legal framework for investors, demonstrating the government's commitment to promoting the private sector and attracting long-term investment.

"This policy reinforces the fact that Vietnam's investment environment is maturing and becoming more reliable, especially for private companies," the KIDO representative commented.

Nguyen Thi Dieu Phuong, VinaCapital's Deputy CEO, notes that in an "open" market, private businesses have significant opportunities to attract value-growth capital from funds like VinaCapital. With many promising sectors and businesses awaiting investment, prospects for sustainable development within the business ecosystem are vast.

VinaCapital emphasizes that Resolution 68 doesn't alter their investment criteria but strengthens confidence in the private sector. The new regulations encourage the fund to continue seeking and partnering with promising businesses, contributing to the growth of Vietnam's private economy, aligning with their 20-year strategy.

Hoang Dan