Page 57 - Forbes - Asia (July - August 2018)

FORBES ASIA
FERTILE GROUND

Stocks and Crops

A securities pioneer in Vietnam keeps one eye on agricultural opportunities.

BY LAN ANH NGUYEN
guyen Duy Hung found- gree, he began connecting foreign direct More than 40% of Vietnam’s work-
ed and runs Saigon Se- investors through a business he called Pan force remains in agriculture. Most of the
curities (SSI), by market Paciic and, when Vietnam’s capital mar- output comes from individual farmers
share and market value ket opened up, set up SSI in 1999. rather than organized, sizable businesses.
Nthe biggest brokerage But Nguyen, now 58, wasn’t satisied In the last few years, Vietnam has started
irm in Vietnam. He also has used M&A just being an investment middleman. Five seeing corporate investment. CP Group
to build Pan Group, a holding company years ago he started ramping up the rem- of hailand has the biggest share in Viet-
tapping into Vietnam’s expanding agri- nant of Pan Paciic to create a circle in ag- nam’s animal feed market.
culture businesses. riculture that he calls “Farm–Food–Fam- Vietnamese entrepreneurs see op-
Financial services, including bank- ily.” Under the new name Pan Group, it portunities here, especially with govern-
ing, insurance, investment and stock raised nearly $100 million and took ma- ment incentives in the form of favorable
brokerage, continue to grow fast in Viet- jority stakes in a dozen small and medi- loan rates. But scaling up oten requires
nam from a low base. One of Vietnam’s um-size enterprises that either provide acquiring precious land. Nguyen sees a
irst three brokerages, SSI was founded seeds or produce harvests. hese range chance to align small companies into a
in 1999 with $420,000 in registered cap- from rice to cashew nuts, seafood and farm-business ecosystem. Revenues at
ital. It now controls close to a ith of its owers. Pan Group, which he also chairs, last
sector and last year report- year grew 47% to $177 million, and he
ed nearly $130 million in says they can approach $400 million this
revenues and $50 million year.
net proit. “Vietnam, with 90 million people, is
Riding on the growth a big market. All of what we are doing is
of the stock exchange of aimed at providing to the domestic mar-
Vietnam, which has a total ket,” he says. Neighboring China is also
market capitalization near a potential market, but only if Vietnam
$150 billion, SSI added an can provide produce that is seasonally
asset-management irm, unavailable there. A priority for Pan in
which hopes to invest some any case is a better distribution system.
of its nearly $800 million Meanwhile, back at SSI, his irm has
in domestic startups. advised and underwritten major deals
Nguyen, the eldest of in Vietnam recently, including the list-
four siblings, won a schol- ing of Vincom Retail and Vinhomes
arship in 1980 to study in from the local giant Vingroup. SSI also
what was then East Germa- raised $230 million for steelmaker Hoa
ny. While there he turned Phat Group, helped sell a state stake in
his attention to trading Vinamilk and brought forward small-
goods between the two er IPOs.
countries. One summer, he Hung’s 15% stake in SSI and 25% in
brought a dozen suitcases Pan Group put his net worth at $116
full of photographic paper million. Unlike most tycoons in Viet-
back to Vietnam. he bulk nam, who would rather stay low-proile,
of it didn’t get through cus- Hung doesn’t shy away from expressing
toms. Nguyen was disci- his opinions publicly. He oten posts on
plined and couldn’t in- his personal Facebook page. F
MAIKA ELAN ish his overseas studies. No Saigon Securities Founder Nguyen Duy Hung, Adapted from Forbes Vietnam, a li-
censee of Forbes Media.
matter. With a local de-

JULY / AUGUST 2018 FORBES ASIA | 55