StanChart experts say M&A opportunities abound in Vietnam

According to Ralf Pilarczyk, head of M&A for ASEAN at Standard Chartered, investors are seeking opportunities via the bank in various fields as they are appealed by the market’s large scale and growth potential.

Equitization and capital divestments at State-owned enterprises (SOEs) are giving foreign investors a chance to join the market, Pilarczyk told the seminar organized by Standard Chartered and the Malaysia Business Chamber Vietnam.

Tina Tejwaney, a Standard Chartered expert on M&A in ASEAN, said M&A deals in Vietnam tend to rise thanks to fast and stable economic growth and the big market with a large population.

This is proven by major transactions conducted by Thai investors in the past time like Central Group’s acquisition of Big C Vietnam and Thai Beverage’s purchase of a 53.59% stake in Sabeco via Vietnam Beverage.

These two deals are among the biggest M&A deals to be struck in ASEAN recently, she added.

Besides Vietnam’s loosening of foreign ownership limits at public companies, that SOEs have started to divest capital has attracted investors more, according to Tejwaney.

In addition to consumer goods and retail, logistics and transport infrastructure are expected to lure foreign investors in the coming time.

Talking about M&A trends in ASEAN, Pilarczyk and Tejwaney mentioned how Standard Chartered work with clients to effectively handle complex, cross-border mergers, divestments and investments.

Edward Lee, chief economist for ASEAN and South Asia at Standard Chartered, shared notable points in the bank’s recent report. He said that ASEAN has a bright economic outlook and government investments in infrastructure projects will boost short- and medium-term growth.

Theng Bee Han, president of the Malaysia Business Chamber Vietnam, said that ASEAN is the world’s sixth largest economic bloc with a total population of 650 million, a major global manufacturing and trading center and a fast-growing consumption market. M&A activities in Southeast Asia as well as Asia have been on the rise.

Theng Bee Han said that the chamber appreciates Standard Charter’s support for ASEAN enterprises as their operations grow and become more complex, as well as their capital needs.