Deal activity in Vietnam reaches $3.2b in 2016

Credit: Sageworks.com

Deal activity in the country in the first seven months of 2016 surpassed $3.2 billion, bolstered by the country’s attractive economic growth of nearly 7 per cent last year, according to Vietnamese investment authorities.

It is expected that the value will touch an all-time high record of $6 billion this year.

The capital into M&A activities in Vietnam or by Vietnamese companies has kept increasing, adding to the total of $18 billion during the past five years. Last year, it hit $5.2 billion, a 23.8 per cent rise over 2014.

“The wider economic boundary has created a new playfield, which is associated with new opportunities for both domestic and international investors,” said an executive from the local investment ministry during the annual Vietnam M&A Forum held on Thursday.

Vietnam has become member of two important free trade pacts, notably the Trans-Pacific Partnership and the ASEAN Economic Community, seen encouraging greater investment capital in the country.

Investors from Japan and Thailand led the wave of flocking in purchasing Vietnamese businesses, the forum data showed. After Thailand, Japanese companies are becoming more aggressive in making acquisitions of Vietnamese firms, according to John Ditty, head of advisory at KPMG Vietnam. The involvement of Japanese companies also included smaller players, besides big Japan-incorporated multinational companies, he added.

While Japan grabbed a handful of deals in aviation, energy and pharmaceuticals industries, Singaporean companies were interested in commercial real estate, and Thai firms kept their focus on the retail sector.

In terms of the number of transactions, domestic M&As accounted for 60 per cent of the total. However, they were mainly small ticket size deals in the region of $5 million. Meanwhile, foreign buyers typically invested from $30 million to over $100 million. Especially, some $1 billion deals were made, like the Singha financing in Vietnam’s leading consumer goods firm Masan Group and Central Group’s acquisition of Big C Vietnam.

M&A in wider economic boundaries, as the forum is dubbed, is the opportunity for companies, regardless of their originality, to create value, experts present at the event said.

The interest of foreign investors in Vietnam will continue to rise for some more time, commented Christopher Kummer, president of the Institute of Mergers, Acquisitions and Alliances.

Also read:

Vietnam M&A deal market to touch $20b between 2015-2018

Vietnam: Stronger M&A activity expected after removing foreign ownership limit

Vietnam to see continued momentum in real estate M&As in 2016

Vietnam: M&As grow 9.7% in 2015 following high investor appetite

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.