24.11.2022, 17:40

Upbeat outlook forecast for Vietnam’s M&A market

HCMC – Investors could hope for an uplift in Vietnam’s mergers and acquisitions (M&A) market, which is showing signs of growth, especially when tight capital market conditions have forced many enterprises to undergo restructuring, sell part of their assets and call on additional investments.

The information was shared at the 14th annual M&A Vietnam Forum 2022 held in HCMC yesterday, November 23, by Vietnam Investment Review, in coordination with the Ministry of Planning and Investment.

Speaking at the event, Tran Quoc Phuong, deputy minister of Planning and Investment, said, “Once the global economy recovers, M&A activities would be exciting again, buoyed by foreign capital flows increasingly channeled into Vietnam and the robust growth of domestic firms.

Given a decline in global M&A deals, the M&A market in Vietnam has become less active than it was in 2020-21 period. Data from KPMG showed that the first ten months of this year saw the value of M&A deals down over 35% year-on-year at US$5.7 billion.

Similar to 2021, Vietnamese businesses continued to be the most active traders in the 10-month period, accounting for over US$1.3 billion of total deal values.

The consumer, real estate, and industrial sectors outperformed others, recording US$1.2 billion, nearly US$1 billion and US$800 million, respectively, in M&A deals. The energy sector became the most active M&A market segment by value, at nearly US$600 million, up sixfold over the same period last year.

Experts at the forum added that M&A activities in the technology sector, with ongoing digital transformation, retailing, and consumer goods trends, remained busy. Meanwhile, the property, energy, and convenience services sectors are expected to see a rising number of M&A deals, with the increased participation of Vietnamese businesses as deal acquirers.

Further, private capital flows from private equity funds and venture capital firms in Vietnam remained strong in the first few months of the year, despite capital market uncertainties and bad debts.