Vietnam Opportunity Fund capitulates on $62B Vingroup after 350% surge, halts private equity

What's the deal? VinaCapital Vietnam Opportunity Fund (VOF)Dealroom has a profile for this one. Try Dealroom → has bought VingroupDealroom has a profile for this one. Try Dealroom →, the country's largest conglomerate, after long avoiding the stock on valuation and debt concerns. Fund manager Khanh Vu added a 5.4% weighting in August, making the $62bn group its fifth-biggest holding; by the end of September, it had climbed to fourth at 5.6% of net assets.

Why now? Vingroup shares soared 350% in the year to June 30, and not holding it was the main drag on VOF's returns. The £496m fund posted a 10.5% total dollar return, far behind the VN Index's 36.5%.

Context: At June 30, Vingroup made up 19.3% of the VN Index and drove two thirds of the benchmark's 12-month gain. VinaCapitalDealroom has a profile for this one. Try Dealroom → said that excluding the group, the market was down about 7% in the first nine months of 2026.

What changed? Vu said Vingroup's "fundamentals have recently changed," pointing to its decision to spin off its electric vehicle unit into a separate company and government backing for major metro, rail, and highway projects. Rival Vietnam Enterprise (VEIL) captured more of the rally, lifting Vingroup from 0.1% to its top holding at 11.2% of NAV.

What else? VOF overhauled its portfolio over the year, selling $472m of stocks and buying $371m to lift turnover to 39%. It also strengthened its team, hiring Tuan Ago from Viet Capital SecuritiesDealroom has a profile for this one. Try Dealroom → as head of investments and Michael Schmidt from Mekong CapitalDealroom has a profile for this one. Try Dealroom → as private equity lead.

The pause: The fund has halted new private equity investments until performance improves. Chair Kathryn Matthews, formerly chief investment officer at Fidelity Asia Pacific, said conditions were "extremely challenging" and that a couple of its unlisted holdings were "distressed," with the manager looking to exit.

The signal: VOF's reversal on Vingroup is a late concession to a rally it missed, not a fresh catalyst. With listed valuations low and private markets stalled, the fund is reallocating cautiously while betting on a broader Vietnamese recovery in 2027.

Read more: theaic.co.uk

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