Merger and acquisition (M&A) transactions in Vietnam may slow down a bit in the second half of the year as investors have grown more cautious about some macro trends impacting the local economy, according to an analysis of M&A data by EY.

The Mergers and Acquisitions (M&A) market in Viet Nam has been going through a downturn due to the pandemic, but the technology sector is bucking the trend.

In strong signals of EU interest in Vietnam over the past few months, a batch of leading companies has signed deals to purchase businesses and expand their merger and acquisition footprint.

Many Vietnamese businessmen have refused to sell their businesses to foreign partners.

Several of Vietnam’s key export sectors have become magnets for merger and acquisition (M&As) activities, posing a risk of leading enterprises in those sectors being purchased by foreign investors.

Although merger and acquisition levels dropped in 2020 across Vietnam, the prospect for such activities remain bright for next year as overseas investors look to local businesses in order to improve market access.

The country has risen to the second place in terms of mergers and acquisitions (M&A) transactions with total domestic investment of US$872 million, the majority of which was driven by US$651 million worth of investment from Vinhomes, 

Merger and acquisition (M&A) deals will likely increase post-pandemic, which industry insiders see as a chance for enterprises to restructure their operations to be more viable.

Merger and acquisition deals in Vietnam’s food and beverages arena in the first five months of this year were inevitably subdued due to global slowdowns across the board.

Many provincial universities and colleges are planning to merge with large universities to improve their enrolment rates and quality standards.

South Korea’s KEB Hana Bank has officially become a foreign strategic shareholder in the Bank for Investment and Development of Vietnam (BIDV) following a cooperation agreement with the two sides inked on Monday.

Authorities have announced a list of transactions that will have to be made via banks in some areas in a move to boost non-cash payments.

VietNamNet Bridge – Analysts are pessimistic about the recent big merger and acquisition (M&A) deals, saying that the deals show Vietnamese businessmen have worn and they have to quit the game.

The value of M&A deals in 2013 is forecast to be at some $4 billion, lower than the record level made in 2012. However, experts believe the M&A market would continue rising with the average growth rate of 25-30 percent per annum.