The new, Vietnam Entertainment Fund (VEF) has been launched with a goal of developing medium and long-term investments in Vietnam’s entertainment sector. The fund has been created by five companies: Green International, MBC Studios, R&B Capital, Surfing Holdings and Yeah1/CMG and is launching with $50 million USD of initial capital.
The new fund was established with help from VinaCapital Fund Management and will be an open-ended fund that operates under a holding company that will invest in other firms and projects. VEF will operate to maximize profits for investors by increasing the capital value and dividend yield from initial investments, including fixed assets and intellectual property assets of film, music and television programs.
VEF believes that with its flexible investment form, finance capacity, transparent business operations and a concern for the safety of investors, that it can attract funds from both business and consumer investors. As the fund develops it will diversify its fields of operation to maximize investment objectives and reduce risks.
The fund’s business plan includes investment in 30 A-class film projects and 20 B-class projects. It will also purchase films released in the 2013-2017 period, advertise projects in 40 cinema complexes by 2020, and own a new cinema complex by 2022.
On the investor, side the VEF is setting a minimum income growth plan of 8% per year and a maximum of 10.5% per year for the 2018-2019 period, and minimum revenue growth of 10.5% per year for 2020-2022. Investors benefits also include the right to buy preferred stocks at the time of issuance, as well as stock value expecting to climb at least five-fold on the initial investment after three years.
One unique point of the VEF is that it will not participate in production even though several of the partners have vast production experience. Instead, the fund will provide support to content and film producers in the areas of capital, distribution, marketing and media.
VEF has a goal of investing in an average of 20 film projects each year. According to VEF’s CEO Nguyen Cao Tung, the fund “Will contribute 5% ~ 45% of the investment capital in each film project, depending on producers’ demands.”
The Vietnamese film industry will have estimated revenue of $100 million USD in 2018 and the industry is projected to grow at 25% per year for the next 5 years to reach $240+ million USD in value. VEF is projecting that the company will do an initial public offering (IPO) five to six years after its establishment.
VEF Investor Profiles:
MBC Studios is a TV production company that belongs to the MAC Media Advertising Development JSC (MCV)
R&B Capital Group is a producer of news and other content
Surfing Holdings is an investment holding company in real estate, hotels, information technology, TV commercial production, sports advertising, and film production
Yeah1 / CMG was founded by YEG (Yeah1 Corporation), and operates in the fields of film, television, digital and publishing and owns a YouTube multi-channel network (MCN). CMG Asia manages and operates companies in the fields of Fitness & Health, Medical & Beauty, Media Development and Early Childhood Development.