Finland’s PYN Elite fund has increased its holding in Vietnam’s Haxaco, a key Mercedes-Benz distributor. The fund now holds 6.8 percent of the company up from 4.8 percent.
Of note, the Mercedes-Benz factory in Ho Chi Minh City has had a challenging time extending its lease, at points suggesting that they might even have to consider closing up shop in Vietnam. This was followed by reports that Mercedes-Benz has set-up a new company that would be focused on importing vehicles and speculation that it might be shifting how it operates in Vietnam.
With this in mind, this decision by PYN may speak to its reading of the situation and what it might be expecting moving forward.
Of note, Tuoi Tre has assessed this investment as a vote of confidence in domestic firms broadly, but it doesn’t really explain how it was able to draw this conclusion beyond the fact that PYN bought the aforementioned shares.
“This development also demonstrates foreign investors’ confidence in Vietnamese companies,” is all it says.
See also: Automotive Industry in Vietnam