“The first factor we look at is whether the company has a strong management that can drive the company strategy. And of course, the fundamentals of the industry in which the company operates,” said Luis Garcia, Chief Operation Officer of Kusto Vietnam.

Operating in Vietnam since 2005, while pursuing its commitment to support visionary entrepreneurs and management teams who strive to transform and improve the countrys business landscape, Kusto Vietnam has successfully invested in over 10 companies spread across real estate, construction and building materials, transportation and logistics, retail, and other consumer-driven sectors.

“Kusto has been here since the mid-2000s and have witnessed the rapid development of the country, with supportive Government policies. We are very positive of Vietnamese corporate growth as Vietnamese entrepreneurs are very active, down-to-earth and dare to try new things,” Luis said.

Successful cases

Kusto invested in Diamond Island, one of the most successful cases in Vietnam. This is a pioneer project of eco-luxurious constructive trend in Vietnam. As of the closure of 2nd phase construction in October 20198, about 98 per cent of the 1,323 units in Diamond Island had been sold. It indicates the quality of and the desire of people to experience living in this world-class project.

The project generated total revenues of over VND8 trillion and received the award for “Best Condo Landscape Architectural Design” at the 2017 Vietnam Property Awards and was named the "best of the best" in 2016 by Robb Report magazine, one of the worlds most respected luxury and lifestyle publications.

Beside Diamond Island, Kusto invested in Coteccons, one of the leading construction companies in Vietnam, since 2012. Coteccons achieved annual revenue growth of 36% from 2012 to 2018.

Luis shared that the decisive factor of investment in Coteccons was its strong management team and its strategic view. “We have achieved significant growth in the business since our investment in the company and we believe the company has the capabilities to grow more in the future with a strong corporate governance.”

Committed to long-term investment

Talking on Vietnamese prospect, Kusto is strongly confident on Vietnamese business landscape.

“Last year GDP growth was 7.08 per cent, the fastest rate in 11 years. We continue to believe that the country will grow keep the high growth rates in the coming years with improved infrastructure, attracting further foreign direct investment,” Luis said.

With such confidence, Kusto will continue investing in Vietnam. “Our footprint is real estate, construction and retail, we are committed to continue supporting and growing potential national leaders,” he said.

Sharing about the companys plans in the next five years in Viet Nam, Luis stressed: “We are looking for companies that have the right, motivated and empowered management backed up by strong corporate governance, it definitely will be a success.”

It still remains construction and real estate as of their investing strength. Kusto would expand to logistics, retail and healthcare. “At this moment, Viet Nam is one of our most potential markets for investment.”

Speaking about the criteria Kusto looks for in a company when investing, he said: “We are open to any business opportunity and ready to invest from the early stage in the company. It could be a listed company, start-up or big company. The investment will depend on its management systems and whether its corporate structure will help increase value through sustaining competitive advantage and focusing on the core business.” — VNS

The Kusto Group is a private, diversified international industrial group based in Singapore. Formed about 20 years ago, Kusto got its origins successfully turning around under-performing mining operations. Today it is a multi-billion dollar group with more than 10,000 employees and businesses that span the globe. The portfolio consists of mining, oil and gas (upstream and downstream), real estate development, construction and construction materials, agricultural and IT projects. Kusto focuses on sustainable investments in emerging market economies because they are the worlds most dynamic, with the highest long-term growth potential. Kusto invests and partners with businesses in those markets, preserving local expertise, combining our management expertise with the methodologies we have developed and shared across four continents. Today we operate in Russia, Kazakhstan, Ukraine, Georgia, Israel, Vietnam, Canada, China, Turkey, and Singapore.