Vietnam’s mergers and acquisitions (M&A) market has been experiencing a resurgence since 2024, continuing into the first nine months of 2025. In 2024 alone, the market recorded 447 M&A deals with a total disclosed value of approximately US$6.93 billion. Notably, foreign investors accounted for up to 70% of total transaction value, with Japan maintaining its leading role.

The sharp increase in Japanese capital not only reflects growing confidence in the Vietnamese market but also presents a valuable opportunity for domestic SMEs to enhance their capabilities and gradually integrate into global value chains.

In recent years, M&A deals have been concentrated in strategic sectors such as technology, healthcare, logistics, renewable energy, and financial services. In 2024, the technology sector led in deal value, reaching VND31.65 trillion, underscoring strong investment interest in innovation and digital transformation. Real estate attracted significant capital with VND27.5 trillion, while the consumer and retail sector ranked third with VND26.47 trillion, reflecting demand for distribution network expansion.

This trend signals international confidence in Vietnam’s growth potential and provides local businesses with access to capital, advanced technology, and modern management practices.

According to Mac Quoc Anh, vice president and general secretary of the Hanoi Association of Small and Medium Enterprises, collaboration with major partners like Japan helps local firms tap into these valuable resources. Hanoi currently has around 420,000 businesses, of which 98.5% are SMEs. Therefore, learning from and connecting with global partners is essential for improving business quality and competitiveness.

“Working with Japan not only opens up opportunities with Japanese investors but also paves the way for collaboration with other key markets like the United States, the Republic of Korea, and Europe,” noted Anh.

Phi Hoa, director of ONE-VALUE, a company that has successfully facilitated over 700 projects between Vietnamese and Japanese businesses, said that Japan has consistently ranked among the top sources of foreign direct investment in Vietnam. The surge in outbound Japanese investment stems from a rapidly aging population and a depreciating yen, prompting Japanese companies to seek growth opportunities in emerging markets, and Vietnam is a strategic destination.

“For Japanese businesses, we assist in identifying suitable Vietnamese partners for investment or acquisition. For Vietnamese companies, we help develop strategies that enhance their ability to attract capital, negotiate fair valuations, and effectively penetrate the Japanese market,” said Hoa.

The Hanoi SME Association plans to intensify efforts to connect local businesses with Japanese partners through networking events, technology transfers, and collaborative programmes. It will also support companies in understanding their true value when entering the Japanese market, emphasising not just selling products, but integrating into the entire value chain, from production and distribution to after-sales services to generate new value and ensure sustainable profitability.

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