Vietnam-Oman Fund eyes cooperation in food security, logistics

https://www.omanobserver.om/article/1166669/business/vietnam-oman-fund-eyes-cooperation-in-food-security-logistics

OMAN DAILY OBSERVER / 23 FEB 2025

CONRAD PRABHU

A high-level delegation representing Vietnam Oman Investment (VOI), a joint venture between Oman Investment Authority (OIA) and the State Capital Investment Corporation of Vietnam (SCIC), was in the Sultanate last week to build on already substantive investment ties between the two countries.

Led by Nguyen Xuan Giao, CEO of Vietnam Oman Investment (VOI), the delegation accompanied First Deputy Minister of Foreign Affairs of Vietnam, Nguyen Minh Vu, and SCIC Chairman, Nguyen Chi Thanh, on a visit to the head office of Oman Investment Authority in Muscat.

“The visit aimed to deepen diplomatic ties and expand economic collaboration between Vietnam and Oman, with VOI playing a key role in bridging the partnership,” the Vietnamese-based Fund stated in a post.

Discussions between the two sides highlighted VOI’s pivotal role over the past 18 years as a “strategic investment platform”. Significantly, the Sultanate of Oman is the first and currently the only Gulf state with direct investment in Vietnam, underscoring the key contribution of VOI in fostering bilateral economic cooperation between the two countries.

Besides exploring opportunities to scale up cooperation between the joint venture partners, VOI is also keen to expand cooperation in food security, ports & maritime logistics, and technology. Additionally, it aims to position itself as a “gateway to attract capital from other Gulf nations into Vietnam”.

Established in 2008, VOI investments have focused on growth sectors that enjoy the competitive advantage of Vietnam and contribute to the long term sustainable growth of its economy.

The joint venture has invested around $300 million in Vietnam, focusing on essential sectors namely high-tech agriculture, infrastructure, water treatment plants, renewable energy, pharmaceuticals and healthcare, and education. The Fund has also acquired significant minority stakes in high-potential companies in Vietnam, providing active support for their growth and advancement.

In 2023, the Board of Directors of VOI approved the allocation of $100 million for investment in public equity. Of this amount, $34.6 million was pumped into five new public equity investments as of December 2023. The Fund’s Private Equity portfolio projects focused on 13 investments, earning a 5.2% IRR and 1.75 times of the investment value as of June 2023.

“As VOI continues to drive cross-border investments, we remain committed to fostering sustainable growth and economic connectivity between Vietnam and Oman,” the Fund added in its post.