Playing an important part in foreign venture capitals invest in Vietnam, Temasek Holdings is an investment company based in Singapore, with a focus on delivering sustainable returns over the long term located in Singapore, Asia and emerging economies. The fund of Temasek currently serves customers worldwide and manages a wide range of investments and financial services including telecommunications, life sciences and agribusiness, transportation and industrials, media and technology, consumer and real estate, energy and resources.

Temasek was founded in 1974 under the Singapore Companies Act, which incorporated the organization. The newly created holdings took over investments and assets that Singapore Government had previously been responsible for.

Temasek’s investment activities are guided by four investment themes and the long term trends they represent:

  • Transforming Economies,
  • Growing Middle Income Population,
  • Deepening Comparative Advantages,
  • Emerging Champions.

With motto “Do things today with tomorrow in mind”, Temasek aims to do their best for a better world, seeks to deliver sustainable value over the long term and makes it different in the community.

A high record of portfolio value in 2019

In 2019, Temasek’s net portfolio value increased for the third continuous year to S$313 billion, up by about 1.6 per cent from S$308 billion in 2018.

Source: Temasek Holdings performance overview 2019

During the year, they invested S$24 billion and divested S$28 billion, reflecting the deliberate tempering of the investment over the year. In terms of Wealth Added, it was S$18 billion below their risk-adjusted cost of capital of 7% aggregated across their portfolio. They also ended the year in a net cash position. About the cash and bank balances, together with their short term investments, which were three times their S$15 billion outstanding debt.

The result comes amid a gloomy economic outlook and rising global uncertainties, fueled by trade tensions between America and China, a possible hard Brexit hurting European economies, and rising risks of a technology war that could affect Temasek’s technology investments.

In a media statement, Temasek said it had “moderated its investment pace” since July last year as it “anticipated an increasingly challenging environment”.

Notably, reiterated by the management team, Temasek Holdings sees Asia as the main growth driver in the long-term. Consequently, two-thirds of its entire portfolio is invested in the region.

Continuing to boost investment in Vietnam

Seeing Vietnam as a fully potential and attractive market in the region for the very early time, Temasek started in Vietnam by mainly investing in real estate through Singapore-owned developer Mapletree Investments Pte Ltd.

Mapletree’s significant projects in Vietnam include the office and residential development in Vietnam largest cities, Hanoi and HCMC. These projects are Pacific Place in Hanoi, Plaza Saigon, SC Vivo City, and Mapletree Business Center in HCM City.

In the next few years, Temasek ramped up investments in Vietnam and carried out cooperation projects in the finance, hi-tech, consumer goods and healthcare sectors by holding shares in a number of Vietnamese blue-chip companies such as Hoang Anh Gia Lai Group (HAG), FPT Corp (FPT), Vinamilk (VNM), and Maritime Bank.

From 2018 to 2019, Temasek has become one of “the big six behind Vietnam e-commerce funding” as it invested in Sendo, VNG and Scommerce.

In 2018, the Singapore-based venture capital invested in FPT Corporation, an Internet corporation which owns Sendo and FPT Shop. According to Similar Web, Sendo has become one of the most popular e-commerce platforms in Vietnam in terms of web traffic in July 2018.

In 2019, a completed sale of 355,820 shares with an average selling price of VND1.8 million, which is VND1 million higher compared to the minimum offering price has been announced by VNG JSC. The buyer is Seletar Investments, a subsidiary of the Temasek, which make Seletar now own 1.74 million shares, equivalent to 5.04 per cent of capital and 6.35 per cent of shares. Another investment unit related to Temasek, Gamvest Pte. Ltd., also holds a 10.25 per cent stake in VNG. The result of this offer, reaching VND662 million ($28.5 million), will be used to increase VNG’s presence in both local and overseas markets as well as serve several future investments.

After that, the latest investment in 2019 is up to US$100 million in Scommerce, a Vietnamese e-logistics service, also the parent company of delivery startups GHN and Ahamove. With the new funding, Scommerce will use toward expanding GHN and AhaMove’s nationwide coverage and capacity, and investing in tech enhancement and automation as well.

Want to know more about Singapore venture capital companies? Viettonkin Consulting stands by your side with international know-how and local knowledge for the fast-growing companies throughout the region. If you have any questions, please feel free to contact us via email: info@viettonkin.com.vn or hotline: +84 918 866 858.

 

 

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