Fast growing jewellery retailer PNJ Vietnam has caught the attention of UK private equity company LGM Investment.

The equity investor has boosted its stake to 5.19 per cent after PNJ, or Phu Nhuan Jewelry, reported a 49 per cent increase in gross profit last year despite an eight per cent decline in demand for gold in the same period.

PNJ plans to open 17 new retail stores this current year, virtually doubling its network to 35 across Vietnam. It plans to grow net profit by 20 per cent, to VND306.4 billion (US$14.2 million).

LGM was an existing shareholder before adding to its stake by acquiring shares from Dragon Capital, a Cayman Island based equity fund which has been liquidating some Asian assets in recent months.

LGM also has a stake in VIetnamese dairy producer and marketer Vinamilk.