M&A deals peak at US$55 billion

Vu Dai Thang, Deputy Minister of Planning and Investment, speaks at the event.

Vu Dai Thang, Deputy Minister of Planning and Investment, made the statement at the Vietnam M&A Forum which took place in Ho Chi Minh City on August 6. 

He noted that trade pacts such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the EU-Vietnam Free Trade Agreement will give a boost to the M&A market while simultaneously increasing investment inflows and related activities.

M&A deals posted only US$1.1 billion in value 10 years ago and jumped by ten times to US$10.2 billion in 2018, therefore lifting the total value of M&A transactions to US$55 billion over the past decade.

M&A transactions amounted to more than US$5.4 billion during the first seven months of this year. The figure will reach US$7.6 billion throughout the year, experts forecast.

Future M&A activities are expected to focus on consumer goods, retail, and real estate. Meanwhile, telecoms, energy, infrastructure, pharmaceuticals, and education sectors are believed to enjoy larger-scale transactions.

Besides, infrastructure and energy sectors are forecast to see large M&A transactions as the country eyes the increasing mobilization of capital from the private sector for infrastructure development. 

According to the Ministry of Planning and Investment, pending amendments to the Law on Investment would act as a major push for the M&A market as it looks to secure legitimate rights and interests of investors.

The ministry has been working towards revamping policies related to investment protection and the legal framework on foreign investment in order to increase the efficiency of forecasting work and accountability.

Deputy Minister Thang said that the M&A market pins high hopes on drastic changes regarding the issuance and implementation of new policies and the creation of linkages for major deals, which is expected to further leverage foreign investment inflows, including those into the M&A market.