Vietnam's large young population and rising incomes form a very attractive consumer base, and the country's high literacy rate creates the basis for a capable workforce. Furthermore, the government’s efforts to stabilise and improve the macroeconomic environment have begun to materialise. Thus Vietnam is once again becoming a favourable destination for investors.
Meanwhile, Indonesia’s large population, favourable demographics and rising incomes also form a very attractive consumer base. This presents an excellent opportunity for investors.
Vietnam and Indonesia are characterised by many small and medium-sized companies, most of which are family-owned. Many of these have succession issues with the young generation not wanting to be part of the company and as such the current owners decide to invite private equity investors to take over. There are also many family-owned companies in which succession has taken place, and the new managers have a more international mindset and thus want private equity investors to help professionalise the company. In addition, there is a pool of small and mid-sized companies which are owned by young entrepreneurs who seek private equity investors to help their companies grow.