Vietnam has new opportunities despite global M&A decline of 500 billion USD
M&A activities are falling into a quiet state. However, according to the Ministry of Planning and Investment, Vietnam’s M&A market is still considered a safe, attractive and potential market.
The third quarter of 2022 is the quarter with the worst global M&A activity with the deal value down 48% compared to the same period in 2021. The global market recorded 8,258 M&A deals worth 544 billion USD, compared with 9,605 deals worth 1.05 trillion USD recorded in the third quarter of 2021. Large-scale transactions slow down, M&A market may experience a recession next year, reports data analytics firm GlobalData.
In the general context, Vietnam M&A market also falls into a quieter period compared to 2020-2021. According to statistics from the auditing firm KPMG, in the 10 months of 2022, the total value of M&A reached 5.7 billion USD, down 35.3% compared to the same period in 2021.
The above information was announced at the Vietnam Mergers and Acquisitions forum in 2022, organized by Investment Newspaper on the afternoon of November 23.
Deputy Minister of Planning and Investment Tran Quoc Phuong said that the global economic context contains many difficulties and challenges with rapid, complicated and unpredictable fluctuations; many unprecedented developments, beyond the forecasting ability of international organizations and countries. According to Mr. Phuong, a number of negative factors affect global investment flows in general and into Vietnam in particular, including capital for M&A deals.
Vietnam M&A Forum in 2022 on the afternoon of November 23. (Photo: Organizing committee)
Leaders of the Ministry of Planning and Investment forecast that in 2023, the world economy will grow slowly, increasing the possibility of a recession in the short term; persistent high inflation in many countries,… Unpredictable global developments also affect the domestic economy. However, Vietnam’s economy is forecasted to continue to recover, socio-economic activities will shift from a state of adaptation and recovery to faster and more stable development.
“The government reported to the National Assembly and approved the target of inflation control in 2023 at 4.5%, economic growth at 6.5%. This is a reasonable growth rate, showing the Government’s determination in continuing socio-economic recovery and development,” said Mr. Phuong.
“Vietnam in general, and Vietnam M&A market in particular, has always been considered a safe, attractive and potential market to activate new opportunities.”
Also at the forum, the organizers honored 10 popular investment and M&A deals in 2021 022 such as UOB Bank (Singapore) acquiring the entire retail banking segment of Citigroup in Vietnam; Sumitomo Mitsui Financial Group (Japan) bought 49% shares of VPBank at FE Credit; the deal worth 280 million USD – The Sherpa Co., Ltd (belonging to Masan Group) buys 85% of Phuc Long Heritage or Thaco buys the Korean E-Mart supermarket in Vietnam; Vietnam Chemical Group (Vinachem) divested all state capital in Duc Giang Chemical Group Joint Stock Company (DGC)…
According to statistics, the main industries and fields that attract a lot of investment include consumption (1.2 billion USD), real estate (nearly 1 billion USD), industry (800 million USD). In particular, energy industry is becoming the hottest in 2022 in terms of value growth, reaching nearly 600 million USD, an increase of about 6 times compared to the whole year of 2021.
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