Vietnamese Tiếng Việt | Tuesday, April 24, 2018 | Advertise with Us
   
Text Size

M&A in Vietnam – Attractive investment channel

Share
(0 votes, average 0 out of 5)

Mergers & Acquisitions (M&A) activities in Vietnam has become an attractive investment channel for enterprises planning to expand business activities, as well as looking for new way of doing business.

MA in Vietnam – Attractive investment channel, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking news

Big C Super markets in Vietnam was acquired by Central Group of Thailand in 2016.

 

Recently, the scale of M&A activities has become bigger with positive impact from the global integration process. According to the Director of Vietnam M&A Forum Dang Xuan Minh, in 2016, total M&A deals in Vietnam was 500 deals, contributing to 5% of total M&A deals in South East Asia with value of 5.8 billion USD. 

In which, investors are mainly from Singapore, Japan, Korea, and Hong Kong, with Korea in the top 4 of highest M&A deals in Vietnam.  

As such, fields such as consumption, retail, industrial production, real estate, education, media and finance are attracting huge amount of financial resources; and on top is M&A in retail sector. 

Many investors are planning to acquire Vietnamese companies to expand market shares, namely Thailand’s investors acquiring Metro, BigC and Nguyen Kim. In real estate, Korea has some big M&A deals such as the take over of Kangnam building and Hanoi-Deawoo Hotel. 

“Recently, Vietnam’s government has eased regulation on the limit number of assets owned by foreign investors. As such, there are big opportunities for foreign investors during the process of state owned enterprises equitization” – Minh said.

 Vice Director of Korea’s M&A Center of Korea Trade – Investment Promotion Agency (KOTRA) Mchael D. Choi said, recently, many Korean enterprises are showing interest in M&A deals in Vietnam. 

As such, the two countries can cooperate efficiently through M&A deals. At present, Korean investors are negotiating with 12 Vietnamese enterprises in fields of food production, pharmacy, and finance. 

From expert’s perspective, in order for M&A activities to be more efficient, and contributes more to the economic growth, it is necessary to have appropriate mechanism and policies to support. 

For example, it may be the policies to facilitate the equitization process of SOEs, speeding up the divestment process for foreign investors, supporting domestic enterprises mobilizing financial resources in foreign stock markets. 

Besdies, the government need to pay attention and create more chances for foreign investors taking part in M&A deals in Vietnam. 

According to Michael D. Choi, Korea are giving priority to allocate financial resources for investment fund focusing on M&A deals. 

In Korea, there are 14 organizations and investment funds with capital of up to 1 billion USD. 

Therefore, in order to have more M&A deals between Korea and Vietnam, Vietnamese enterprises need to have more accurate information and issuing financial report in a timely manner. 

Statistics from the State Capital Investment Corporation (SCIC) showed that, in 2017, SCIC will divest the government fund from 114 out of 132 SOEs. 

At present, this process is completed in 30 enterprises, with the remaining enterprises are expected to be complete by the end of this year. 

Despite the limited time left, but there are high chances that it will be success with many big SOEs such as Sa Giang, Tien Phong Plastic, Binh Minh Plastic, Bao Minh Insurance and FPT Group. 

 

 

Source: Hanoitimes

Maybe You Also Interesting :

» Investing M&A Outbound Investment 30 years of FDI

The Ministry of Transport last week confirmed they will remove 10 ports along the Saigon River to areas further on the outskirts, a move which will likely...

» Foreign investors turn to M&A to increase SOE holdings

Foreign investors at state-owned firms are looking to increase their holdings via M&A deals to solidify their footholds in Vietnam.

» Vietnam needs big deals to reach M&A value exceeding $8 billion

The total value of M&A deals made in 2017 was 8.4 billion, according to IMMA (Institute of Mergers, Acquisitions, and Alliances). The sharp 45 percent...

Popular News Categories:

- Asia & Asian  |  EU & Russia  |  America & US

- Facts  |  Urban  |  Faculty  |  Environment

- Business  |  Finance  |  Market Health

- Destination  |  Cuisine  |  Arts Music

- Cinema  |  Soccer  |  Sports  |  IT & Internet

Culture & Tourism:

-> About Vietnam  |  Things To Do

-> Destinations  |  Events Calendar

-> Visa Online  |  Flights & Transport

-> Accomodation  |  Tours & Cruise

-> Find more go to Travel.VN...

Login