With capitalization value of US$50 million, the launch of VEF on July 26 marked its presence as the first of its kind in Vietnam, targeting mid- and long-term investment in the entertainment sector, local media reported.
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The fund's portfolio investment includes movie projects, advertisement in cinemas and cinemas. For movie project, VEF will invest in 30 A-class movies and 20 B-class projects.
It also sets target of purchasing 10 - 40% stake in 40 cinema complexes in the 2018 - 2019 period, and owning cinema complexes by 2020.
The fund said it targeted a minimum income plan of 8% per year and a maximum of 10.5% for the 2018-2019 period, and later, a minimum of 10.5% for 2020-2022.
VEF is scheduled to launch its initial public offering (IPO) five years after its establishment, while its stock value is expected to be five times higher than the initial investment after three years.
Revenue of the Vietnam's movie industry currently stands at VND2.3 trillion (US$99.38 million) with an average growth rate of 25% per year.
For a population of over 100 million, of which the majority is at young age, VEF considers Vietnam still has huge potential for the entertainment sector.
