Mergers and acquisitions (M&A) have become a central feature of Vietnam’s economic landscape, providing a mechanism for corporate restructuring, market consolidation, and foreign investment. Since the beginning of 2024, the M&A market in Vietnam has been characterized by steady growth and increased activity, despite challenges presented by global economic uncertainty. This article explores the overall situation of M&A in Vietnam, the key sectors driving these activities, and notable cases in 2024. Additionally, it will highlight emerging opportunities and assess the broader implications of these trends.

Overall Situation

Although the M&A market was established in Vietnam in 1999, it only truly developed and demonstrated a clear growth trend from 2007 onwards. The M&A waves in the Vietnamese market have undergone various phases, with each successive wave generally being larger than the previous one. Notably, there have been three main waves: the first from 2008 to 2013, the second from 2014 to 2017, and the third from 2018 to the present[1].

The M&A market in Vietnam since early 2024 has shown significant recovery and growth, especially after a challenging period in 2023 due to various global economic factors. Key sectors such as real estate, consumer goods, energy, and banking have emerged as focal points for M&A deals. The global economic recovery and supportive policies from the Vietnamese government have facilitated the completion of numerous major transactions, particularly with the participation of foreign investors.

As for the investors, M&A activities in 2022 and previous years have continuously witnessed changes in the trend of capital flows shifting from foreign investors to domestic investors. According to experts, in earlier stages, M&A activities were mainly carried out by foreign investors, including those from Thailand, Singapore, Japan, and South Korea, etc[2]. In the first seven months of 2024, foreign investment channeled into new and existing projects increased sharply compared to the same period last year, by 35.6% to US$10.8 billion and 19.4% to nearly $5 billion, respectively[3].

Outstanding M&A Cases within 2024

As 2024 began, Vietnam’s M&A market continued to experience a dynamic shift, with domestic investors increasingly taking the lead in acquisitions. This shift follows a trend from previous years, driven by the growing confidence of local companies and the supportive policies encouraging domestic participation. Several outstanding M&A deals have taken place in Vietnam since the beginning of 2024, reflecting the diverse interests of both domestic and international investors.

The table below shows some of the most prominent M&A deals from the beginning of 2024

출처 : B&Company의 종합

These transactions reflect the vibrancy of Vietnam’s M&A market in 2024, with domestic companies actively participating in expanding and consolidating their positions in key strategic sectors.

Motivation for development and foreign investment opportunities

The M&A market in Vietnam is driven by several key motivations stemming from both domestic and international factors. Firstly, the strong economic growth, with an anticipated GDP increase of 6.1% in 2024 by World Bank[4], this boosts the demand for expanded production and improved infrastructure. Additionally, the Vietnamese government has also actively implemented policies and actions to boost M&A activities, recognizing their role in economic modernization and attracting foreign investment. Legislative reforms, such as the Law on Enterprises and the Law on Investment (2021), have made it easier for foreign investors to engage in M&A by simplifying procedures and clarifying ownership rules. Additionally, the government offers tax incentives and financial support in high-growth sectors like manufacturing and finance, making the investment climate more attractive. Efforts to develop financial markets, including the consolidation of the Hanoi and Ho Chi Minh stock exchanges into the Vietnam Stock Exchange, aim to increase market transparency and investor confidence[5]. Furthermore, participation in international trade agreements like CPTPP and EVFTA has opened new doors for cross-border M&A by providing foreign investors access to larger markets under preferential terms. Together, these policies and initiatives strengthen Vietnam’s position as a competitive and appealing destination for M&A.

In 2023, VPBank has accomplished its sale of 15% stake to Sumitomo Mitsui Banking Corporation, making the Japanese lender a strategic partner in its next development chapter.  The value of the deal is more than VND35.9 trillion (nearly US$1.5 billion). The shares issued through the private placement are subject to a lock-up period of five years. VPBank received a 10% deposit from SMBC for the private placement prior to its annual general meeting held in April. The remaining 90% is to be paid at the conclusion of the deal[6].

Ngo Chi Dung, VPBank chairman, speaking at an event to announce its stake sale to Sumitomo Mitsui Banking Corporation

원천: Vn익스프레스

As the country’s economic growth, policy enhancements, and trade agreements create a conducive environment for cross-border mergers and acquisitions, major deals like this demonstrate how foreign investors are leveraging these opportunities. The VPBank-SMBC partnership is a testament to the increasing confidence international investors have in Vietnam’s long-term economic potential and the government’s efforts to modernize its financial markets.

결론

M&A activity in Vietnam from the beginning of 2024 has been driven by a combination of macroeconomic stability, favorable government policies, and growing foreign interest in key sectors such as finance, real estate, technology, and manufacturing. Despite challenges related to regulatory transparency and global economic uncertainty, Vietnam has remained a highly attractive destination for mergers and acquisitions.

Looking ahead, Vietnam’s position as a regional manufacturing hub, combined with its growing consumer base and digital economy, will continue to create attractive opportunities for both domestic and foreign investors. However, navigating the country’s evolving regulatory environment and overcoming challenges related to global economic volatility will be critical to the long-term success of M&A deals in Vietnam.

[1] Economics and Forecast Journal (2024). The Current Situation and Solutions to Promote Mergers and Acquisitions in Vietnam. <평가하다>

[2] GSO Magazine (2023). Vietnam M&A market: from “strategy” to “opportunity”. <평가하다>

[3] Viet Nam News (2024). M&A market waiting for big deals. <평가하다>

[4] Government News (2024). WB raises Vietnam’s GDP growth forecast. <평가하다>

[5] National Institute for Finance (2020). Vietnam Stock Exchange officially established. <평가하다>

[6] VnExpress (2023). VPBank completes sale of 15% equity to Sumitomo Mitsui Banking Corporation. <평가하다>

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