Việt Nam’s merger and acquisition (M&A) market is heating up, as the country deepens its international integration with the establishment of the ASEAN Economic Community (AEC), the upcoming Trans-Pacific Partnership (TPP) and new signing of free trade agreements. — Photo baodautu.vn

HÀ NỘI — Việt Nam’s merger and acquisition (M&A) market is heating up, as the country deepens its international integration with the establishment of the ASEAN Economic Community (AEC), the upcoming Trans-Pacific Partnership (TPP) and new signing of free trade agreements.

“A new vision is opening for businesses and investors when an investment in an ASEAN countries is similar to an investment in a whole region with over 600 million people, young labour and rising middle-income earners,” said Lê Trọng Minh, editor-in-chief of the Vietnam Investment Review, organizer of the Vietnam M&A Forum 2016, slated to be held in HCM City on August 18.

Together with economic reforms and the country’s deeper integration in the global economy, M&A activities have become an important channel to raise funds for businesses and contribute to the restructuring of domestic enterprises

M&A transaction between 2014 and 2018 are expected to reach about  US$20 billion.

According to the latest research by the M&A Forum 2016, the total value of M&A deals in Việt Nam hit $5.2 billion in 2015, comparable to the record of $5 billion in 2012.

In the first seven months of this year, this figure reached over $3 billion, a rise of 28 per cent over the same period last year. Such activities are forecast to continue their robust pace towards the end of the year.

“Việt Nam’s economic boundaries are expanding more than ever,” said Đặng Huy Đông, Deputy Minister of Planning and Investment.

He said the formation of AEC, and signing of free trade agreements with big partners like the EU, Korea and other countries was presenting new and attractive opportunities for domestic and foreign investors.

Since last year, the market has witnessed several billion-dollar deals, including Thai Central Group’s acquisition of French-owned retail giant Big C, and Singha’s investment in Masan Group’s consumer and brewery arms.

Vietnamese companies have also been more active over the past two years as many domestic companies became buyers, expanding their presence in other sectors with the expectation of growing and becoming more competitive, such as VinGroup, Masan Group, Vinamilk and Thành Thành Công Group.

M&A activities are forecast to be vibrant in retail and consumer goods, finance, banking, real estate, technology and e-commerce. Among outside investors, Japanese and Thai companies are more dynamic.

According to Masakata Yoshida, CEO of Recof Corp, a Japanese M&A advisory service provider, these two markets have been relatively mature and companies from these two countries are seeking to expand their markets overseas. – VNS