M&A value in Vietnam reaches $5.43 billion in seven months

The value of the merger and acquisition (M&A) deals in Vietnam reached $5.43 billion in the first seven months of this year, according to data released on July 23 by the AVM Vietnam.

M&A value in Vietnam reaches $5.43 billion in seven months

The figure included the 885 million USD equity purchase of Korean KEB HANA Bank for 15 percent stake of the Bank for Investment and Development of Vietnam (BIDV) announced on July 22.

Since 2018, Vietnam has emerged as a big M&A market in the Southeast Asian region with many big value deals. Total M&A value last year reached 7.64 billion USD, down 25 percent compared to 2017’s record value of 10.2 billion USD. However, if excluding the 5 billion USD deal of ThaiBev’s purchase of Sabeco’s equity in 2017, the 2018’s M&A value still increased by 41.4 percent year-on-year.

Dang Xuan Minh, General Director of AVM Vietnam, said foreign investors were seeking opportunities in the consumer goods manufacturing and real estate industries in Vietnam to capitalise on the huge market of more than 96 million people.

“At a Bloomberg’s investment conference in Thailand recently, many foreign investors expressed their keen interest in Vietnam’s market and want to seek opportunities here,” Minh told the meeting to introduce the Vietnam M&A Forum 2019 on July 23.

Their interested industries included consumer goods, retail, real estate, education and logistics, Minh said, but also pointed out the obstacles which may hinder foreign investment, including slow state-owned enterprise (SOE) equitisation process, high State holding ratio in equitised companies, overvalued assets and the lack of transparency and English proficiency in Vietnamese firms.

Minh predicted the M&A value could reach 6.7 billion USD by year-end, but left open the possibility of higher value if appearing big deals like KEB HANA Bank in BIDV.

Michael DC Choi, Deputy General Director of the Korea Trade Investment Promotion Agency (KOTRA) told Vietnam News valuation was one of the biggest obstacles to seek investment in small companies in Vietnam.

 

“There’s no clear standard to value the company properly. You have to trust and take all risks in the deal,” he said.

After a decade of strong growth, Vietnam’s M&A market value reached nearly 50 billion USD and is predicted to enter a new era with various opportunities.

Deputy Minister of Planning and Investment Vo Thanh Thong said Vietnam was promoting M&A activities in tandem with SOE equitisation in various sectors like transportation, infrastructure, food, agriculture, telecommunications, trade, services and tourism.

Thong said recent new policies such as the draft amendments and supplementations to some important laws (the Law on Investment, Law on Enterprises and Law on Securities), the draft resolution on attracting new-generation foreign investment and newly-signed free trade agreements would help lure more investment, including M&A deals.

He said the Politburo for the first time would issue a separate resolution on attracting foreign investment in the future.

Meanwhile, Le Trong Minh, Editor-in-Chief of Vietnam Investment Review, the event organiser, said Vietnam also faced challenges from domestic and international factors such as rising trade tension in the world, slow equitisation and divestment of state-owned enterprise and modest local market value.

The 11th annual Vietnam M&A Forum 2019 themed “Going for breakthrough” will take place in GEM Conference Centre in HCM City on August 6. The forum would assess the M&A trends in the next few years, analyse new capital flows, opportunities and driving force for M&A in Vietnam, Minh said.-VNS

 
 

Other News

.
Seaport companies less affected amid pandemic
Seaport companies less affected amid pandemic
BUSINESSicon  21/09/2020 

Seaport companies still reported positive earnings despite the impacts of the COVID-19 pandemic.

Vietnam’s GDP to grow 2-3 percent this year: former GSO director
Vietnam’s GDP to grow 2-3 percent this year: former GSO director
BUSINESSicon  21/09/2020 

Vietnam’s GDP growth this year can reach 2 – 3 percent, according to former director of the General Statistics Office (GSO) Nguyen Bich Lam.

Ministers, local leaders urged to enhance public investment disbursement
Ministers, local leaders urged to enhance public investment disbursement
BUSINESSicon  20/09/2020 

Ministers and leaders of People’s Committees of cities and provinces nationwide are required to remove difficulties and promote the disbursement of public investment as well as production, business and consumption.

Banks ask for higher credit quota to prepare for peak lending season
Banks ask for higher credit quota to prepare for peak lending season
BUSINESSicon  20/09/2020 

Despite a credit slowdown in the first half of 2020, some private commercial banks have still asked the State Bank of Vietnam (SBV) for a credit growth expansion to prepare for a peak lending season expected at the end of the year.

Vietnam targets 6.5% GDP 2021 growth
Vietnam targets 6.5% GDP 2021 growth
BUSINESSicon  20/09/2020 

The Ministry of Planning and Investment (MPI) has been asked to meet the goal of 6-6.5% GDP growth in 2021.

Deposit rates hit new lows
Deposit rates hit new lows
BUSINESSicon  20/09/2020 

Local banks have continued slashing deposit rates to as low as 2.5% per annum, in tandem with the Government’s principle of lowering lending rates to support borrowers.

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 20
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 20
BUSINESSicon  20/09/2020 

Banks ask for higher credit quota to prepare for peak lending season

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 19
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 19
BUSINESSicon  19/09/2020 

Keeping NPLs ratio below 3 percent a challenge: experts

Unable to lend to businesses, banks offer consumer loans to individuals
Unable to lend to businesses, banks offer consumer loans to individuals
FEATUREicon  21/09/2020 

Deposits at banks continue to increase, though deposit interest rates have been decreasing. With plentiful capital, banks are inviting individuals who want to borrow money to buy houses and cars.

Without coal-fired thermal power, can Vietnam afford expensive 'clean power'?
Without coal-fired thermal power, can Vietnam afford expensive 'clean power'?
FEATUREicon  21/09/2020 

The Ministry of Industry and Trade has not yet confirmed the complete withdrawal from use of coal-fired thermal power, but is designing a roadmap to reduce the proportion of this kind of power for the nation’s electricity output.

Forbes’ 30 Under 30 includes two Vietnamese whose company makes shoes from coffee grounds, recycled plastic
Forbes’ 30 Under 30 includes two Vietnamese whose company makes shoes from coffee grounds, recycled plastic
FEATUREicon  20/09/2020 

Two Vietnamese are among the 2020 Forbes’ 30 Under 30 of Europe in the Social Entrepreneur Category.

VN sugar firms struggle due to ATIGA
VN sugar firms struggle due to ATIGA
BUSINESSicon  20/09/2020 

Tariffs being cut to zero under the ASEAN Trade in Goods Agreement (ATIGA) from January 1 this year and the COVID-19 pandemic have made for a tough year for the sugar industry, heard an online seminar.

Right adjustment could help Vietnam back as high-performing economy: McKinsey
Right adjustment could help Vietnam back as high-performing economy: McKinsey
BUSINESSicon  18/09/2020 

COVID-19 has interrupted the country’s journey to become a high-performing economy, but the right structural adjustments could help get it back on track, according to McKinsey & Company, a leading US consultant firm.

Chinese funds pour money into Vietnamese market
Chinese funds pour money into Vietnamese market
BUSINESSicon  18/09/2020 

Many Chinese funds are pouring capital into the Vietnamese stock market because of low valuations and further loosening of foreign ownership in the near future.

The pandemic and a positive outlook
The pandemic and a positive outlook
FEATUREicon  18/09/2020 

Nations have closed borders, economies are isolated, and supply chains are fragmented. And Vietnam's economy is no exception.

Opportunities await VN husbandry sector over next decade
Opportunities await VN husbandry sector over next decade
BUSINESSicon  18/09/2020 

The outlook for Vietnam's livestock market was bright over the next ten years as the population grows to nearly 107 million with an average income of US$10,000, said Minister of Agriculture and Rural Development Nguyen Xuan Cuong.

Grab, MoMo enter e-commerce playing field
Grab, MoMo enter e-commerce playing field
FEATUREicon  18/09/2020 

Grab and MoMo are veterans in their core business fields, but they are the newcomers in the e-commerce market.

Businesses must understand trade remedy implications, says expert
Businesses must understand trade remedy implications, says expert
BUSINESSicon  18/09/2020 

International trade remedies are used by many countries to protect their domestic industries, especially now production has stalled due to the impacts of COVID-19.

Vietnam’s first batch of coffee under EVFTA exported
Vietnam’s first batch of coffee under EVFTA exported
BUSINESSicon  19/09/2020 

Vietnamese businesses on Wednesday announced the first batches of passion fruit and coffee exported to Europe following the Europe-Vietnam Free Trade Agreement (EVFTA).

COVID-19 woes: Footwear exports likely to fall short of target
COVID-19 woes: Footwear exports likely to fall short of target
BUSINESSicon  17/09/2020 

Footwear exports this year are unlikely to hit the target of US$24 billion because of the fallout of the Covid-19 pandemic.

 
 
 
Leave your comment on an article

OR QUICK LOGIN