Mekong Capital Exits Red Wok, Sharpens Focus On Future IPO Bets
Vietnam-focused private equity firm Mekong Capital has officially exited its investment in the Red Wok restaurant chain, marking the end of a nearly decade-long journey that began in 2016 through the Mekong Enterprise Fund III (MEF III). Red Wok was formed following MEF III’s backing of Wrap&Roll and later expanded by acquiring popular F&B names like Quan Ut Ut and BiaCraft. However, Mekong Capital confirmed that this was an underperforming exit that did not meet the fund’s original expectations.
Red Wok joins a series of modest outcomes from MEF III, including exits from Ben Thanh Jewelry (2020) and Rever (2024), reflecting the volatility and challenges of scaling F&B and retail ventures in Vietnam. In contrast, Mekong’s standout successes include a 57x return from Mobile World in 2018, along with investments in Phu Nhuan Jewelry, Golden Gate, and Traphaco. Looking ahead, Mekong is shifting its focus to more promising sectors like financial services and biotech, with companies such as F88 and Gene Solutions seen as strong IPO candidates. MEF III’s current portfolio includes Vua Nem, Yola, Pharmacity, and F88.
Mekong Capital’s exit from Red Wok underscores the cyclical nature of private equity, particularly in F&B. While not all bets pay off, the firm’s strategy of cutting underperformers to double down on future winners like F88 and Gene Solutions signals a disciplined and forward-looking investment approach.
Highlands Coffee Hits Profit Peak, Prepares for Vietnam IPO
Highlands Coffee, Vietnam’s largest coffee chain by number of stores, has reported its strongest Q3 profit in two years, marking a major recovery milestone for the F&B brand. For Q3 2025, the company recorded an EBITDA of 666 million Philippine pesos (approximately $11.3 million), fueled by a 17.2% year-on-year increase in same-store sales. Across the first nine months of 2025, Highlands achieved an EBITDA of $32.2 million, up 9.5% compared to the same period last year. The chain currently operates 928 stores, having opened 109 and closed 31 so far in 2025.
Backed by SuperFoods Group - a subsidiary of Jollibee Foods Corporation (JFC) - Highlands is now preparing for a potential IPO in Vietnam within the next 18 to 24 months. JFC previously considered divesting a 10-15% stake in the brand in 2022 at an $800 million valuation, and market observers now expect that number to approach $1 billion. The renewed IPO plan reflects Jollibee’s ongoing liquidity strategy, while signaling investor optimism in Vietnam’s fast-growing consumer market and startup-friendly capital environment.
Highlands Coffee’s strong financial rebound, driven by solid operational performance and network growth, positions it as a key IPO candidate in Vietnam’s capital market. Beyond Jollibee’s strategic interests, the listing would send a positive signal to investors about Vietnam’s F&B sector resilience and consumer demand strength.
Vietnam’s Stock Market Hits $15.7B In Fundraising, Retail Accounts Soar
Vietnam’s stock market is experiencing one of its strongest years, raising a record $15.7 billion in the first nine months of 2025, up 4.8% year-on-year. Equity fundraising is expected to surpass the previous peak of $5.08 billion set in 2021, with $4.16 billion already secured by October. Major IPOs from VPS JSC and VPBank Securities are key drivers, contributing to an estimated $5.2 billion in total equity raised this year. Capital-intensive sectors like securities and real estate continue to dominate, using tools such as IPOs, private placements, and rights offerings to fund expansion.
Retail investor interest has surged alongside market growth. By the end of August 2025, Vietnam had 10.75 million investor accounts, an increase of 15.7% compared to the end of 2024. This momentum reflects growing domestic confidence and the increasing accessibility of financial markets. Looking ahead, the Central Counterparty Clearing (CCP) mechanism, expected by 2027, aims to further stabilize and streamline the system for both businesses and investors.
Vietnam’s 2025 stock market boom signals a shift in the country’s capital market landscape. With support from the KRX system and FTSE Emerging Market upgrade efforts, the market is now a key growth engine for long-term economic development. Continued reforms will be crucial to attract foreign capital while strengthening a resilient domestic investor base.
HCMC Aims To Become APEC’s Fintech Powerhouse With IFC Strategy
Ho Chi Minh City is stepping up its ambition to become a major financial player in the APEC region with the development of its International Financial Center (IFC). At a recent city-level conference, officials outlined a clear vision: establish HCMC as a strategic innovation hub for sustainable finance and digital assets. Backed by legal frameworks such as Resolution No. 222/2025/QH15 and Resolution No. 05/2025/NQ-CP, the IFC will focus on aligning with global standards, attracting international talent, and supporting capital flows.
HCMC’s strengths are evident. The city hosts nearly 50% of Vietnam’s startups and is home to three of the country’s four tech unicorns. In 2025, its startup ecosystem ranked 110th globally (StartupBlink). But to unlock IFC’s full potential, officials identified four major challenges: transitioning to an IP-based economy, completing the digital asset legal framework, building a Vietnam-Singapore “fintech superhighway,” and strengthening APEC’s core financial pillars - governance, capital, and banking collaboration. The city’s NextGen model, combining youth creativity with expert knowledge, is central to this push and requires stronger R&D investments and talent exchanges.
HCMC’s push to establish its IFC marks a pivotal moment for Vietnam’s financial and innovation landscape. Leveraging its dominance in startups, the city is positioning itself as a future-ready financial hub focused on fintech, digital assets, and sustainable finance. The success of this initiative will depend heavily on swift legal reforms, cross-border collaboration and the ability to attract global talent and capital. If executed well, the IFC could become a cornerstone in APEC’s next-generation financial ecosystem.
Genesia Ventures is an early-stage venture capital firm operating in Japan and Southeast Asia, with a strong belief in the long-term potential of Vietnam’s digital economy. Beyond providing capital, the fund actively supports startups through strategic guidance and connections to a broader regional network.