In the world of Vietnamese private equity, everyone is on the prowl for the next Mobile World. When Ho Chi Minh City-based Mekong Capital shelled out $3.5 million for a 35% stake in the firm in 2007, it was just one of thousands of shops selling early-era cellular phones and assorted electrical goods.
Vietnam’s economy was starting to buzz, but private equity struggled to find good, young, well-run and undervalued companies in which to invest. Mekong clearly liked Mobile World’s management, led by co-founders Tran Le Quan and current group chief executive Nguyen Duc Tai, and the cheerful yellow-on-black colour scheme in its stores.
Led by co-founder and partner Chris Freund, Mekong had presumably also noticed the sharp rise in the use of mobile phones. In 2005, just 11 out of 100 citizens had a mobile; within two years, that number had jumped to 52, according to data from Hamburg-based research firm Statista.
Fragmented frustration
In the past, private equity investors entered Vietnam with their eyes open. They knew the state controlled a host of sectors, from cigarette imports to the sale of fireworks.
