Vietnam has appointed top executives of its leading private sector firms to head a newly established private sector development committee.

The committee will propose policy reform to create an environment more conducive to investments by private businesses. It will be publicly launched at the end of this month, DEALSTREETASIA has learnt.

Truong Gia Binh, chairman of Vietnam’s IT conglomerate FPT Corporation, has been mandated as chairman of the new group. Meanwhile, Don Lam, founder and CEO of asset management company VinaCapital, will act as vice chairman.

Binh co-founded FPT in 1988. The company has grown into one of Vietnam’s biggest technology firms with a USD1.2 billion market value. In addition to software development, telecommunication and retail business, FPT also operates a venture capital arm, FPT Ventures, and the Vietnam Innovative Startup Accelerator.

Last month, VinaCapital and Dragon Capital purchased 30% of its distribution unit, FPT Digital Retail JSC, for an undisclosed joint value. VinaCapital said it invested USD11 million in the business without revealing the quantum of stake it picked up.

As an asset management firm targeting multiple asset class, VinaCapital has been investing heavily in private equity and privatized companies.

Other members of the private sector development advisory committee include four entrepreneurs with expertise in the finance, manufacturing, retail, tourism, agriculture, real estate and logistics industries.

In August, the Vietnamese government said the private sector made up the highest proportion of the country’s GDP, 39.21%, while state-owned enterprises and FDI companies contributed 28.7% and 18.07%, respectively.

 However, growth in the private sector is showing signs of a slowdown. As a result, the government is making efforts to increase the contribution by the private sector to the GDP to around 50-60% by 2020.

Source: https://www.dealstreetasia.com