The SSI Asset Management Co, a wholly-owned subsidiary of Sai Gon Securities Inc, yesterday signed a deal with the Japanese Daiwa SMBC Capital Co Ltd to commence an operation of an onshore investment fund in Viet Nam.

The fund, located in the Cayman Islands, is expected to start capital disbursement in December, focusing on Vietnamese unlisted high-growth companies. At the time of establishment, the fund has a total asset of 800 million Japanese yen (US$9.13 million) and is expected to invest about 5 to 10 billion yen ($57.06-114.1 million) on the final closing.

The fund, in term of seven years, will make growth-capital investments in Viet Nam by leveraging experiences and knowledge of both companies and pursue high performance. Daiwa SMBC Capital said that Viet Nam was a young and fast-growing country, enjoying one of the highest economic growths in Asia.

The local market was increasing its presence in emerging countries as a prime candidate for a China-plus-one strategy, the company said, noting that the market was seeing rapid improvements in platforms for unlisted-share transactions such as an establishment of the UPCOM (unlisted public company market) this June.

The fund is managed via the Business Alliance Agreement signed in June 2008 between Daiwa Securities Group Inc and Saigon Securities Inc.

Daiwa Institute of Research Ltd has been supporting the Saigon Securities Inc through a joint research project on the Vietnamese market and a trainee programme for young analysts. Since July, the institute has provided IT consulting services to the next generation SSI main system.