Hathaway-Nguyen Capital Management, Inc. is a capital markets advisor which is focused on investment opportunities in Vietnam. Our vision is to create a collaborative framework that will bridge investors in the United States with companies in Vietnam.

Welcome

In 1986, the government of Vietnam declared "Doi Moi" or Renovation, and embarked on a bold strategy of reform, which over the last twenty years has created one of the most dynamic and fastest growing free-market economies in the world. Though sometimes unpopular and often difficult, the fruits of their single-minded focus have now become apparent. Almost without notice, Vietnam has become:

The Second Fastest-growing Economy in the World
GDP growth has averaged 7.5% over the last decade vs. about 3.5% in the US. Many agencies have projected even faster growth over the coming years.

A Source Of Low Cost Labor
Average monthly income is $70. With costs currently about two-thirds lower than in China, this is a location for new manufacturing. Intel recently announced a multi-billion dollar assembly plant. Even some Chinese companies are relocating facilities to Vietnam to lower their already low costs.

Capable, Young Workforce.
50% of the population is under the age of 25, 70% is under the age of 35. Average formal education level is 11 years and the literacy rate is 90%, approximately the same as China and better than many neighboring countries.

A Destination Market for Goods and Services.
With 85 million citizens, Vietnam is the 13th largest country in the world (ranking ahead of Germany). As incomes have grown, so has consumption. For example, bicycles were the norm five years ago; now mopeds and motorcycles are the most common mode of transportation. As incomes continue to rise, cars will replace motorcycles as they have in China.

2,000 Miles of Spectacular Coastline.
An obvious destination for leisure activity, vacations and business conferences. Several five-star resorts have already been built and there are current commitments for over $1 billion in additional leisure facilities including championship golf courses, condominiums, hotels, water-parks and other entertainment venues.

Vietnam Stable Political System.
Although Vietnam has a socialist government, it has been committed to developing a free market economy for over 20 years. WTO membership, granted earlier this year, is only the latest step in a long transformation and will lock in economic reforms to insure against any backtracking. Currently, Vietnam enjoys bilateral trade agreements with 80 countries and is a member of regional trade associations like ASEAN and AFTA. As additional evidence of its rising status on the world stage, Vietnam was elected as the newest member of the UN Security Council.

Improved Legal Environment.
In concert with the movement toward a free market economy, the government has passed many laws aimed at improving the legal environment. Though not yet to the standards of most western countries, over the last several years, amendments have strengthened private property laws, particularly for foreigners and added provisions that place foreign investors on a more equal footing with Vietnamese citizens.

Focus on Transparency, Ethics and Governance.
Entrance into the WTO and membership on the UN Security Council bring certain responsibilities. Currently, there is a significant effort, not only within the government but also in private and public companies, to improve transparency through adoption of international accounting standards, to write professional standards of conduct for employees and to improve corporate governance policies designed to minimize the opportunities for corruption.

Privatization of State-Owned Entities.
The government has committed to privatize all eligible state-owned entities by 2010. We estimate another 700 companies remain to be privatized. This will provide a steady supply of IPOs for the Ho Chi Minh City and Hanoi stock exchanges and will absorb some of the foreign direct investment currently deployed in Vietnam. More importantly, it will rapidly increase the market value and liquidity of the Vietnamese stock markets. As these markets grow, they will attract even more capital from foreign investors.

Extraordinary Appreciation Potential.
It is instructive to review the performance of other emerging stock markets as they became "investable" and therefore noticed by foreigners. Taiwan achieved that status in 1986. Between 1986 and 1990, its stock market appreciated 1200%. Similarly, China’s market broke on the international scene in 2001. It has appreciated 500% in the last six years. Vietnam has appreciated about 250% since it became marginally investable in 2004-2005.

Americans Slow To Invest.
The amount of foreign direct investment by the USA significantly lags other countries. US investors are currently focused on China but it is a mistake to continue to overlook the potential in Vietnam. We intend to provide a vehicle for US investors to take advantage of this terrific investment opportunity.