According to Vietnam M & A Forum, in the years before 2017, there were less than 50 transactions and the highest transaction value of no more than USD300 million. In the past few years, Vietnam M&A market has truly reached a remarkable breakthrough driven by big enterprises’ IPOs as well as encouraging economic policies which thrust the Vietnam M&A market over the 10-billion-dollar mark for the first time. In the first six months of this year, Singapore is leading the way with big investments in GIC.
After 10 years, the total value of M & A deals in Vietnam increased from USD1 billion to over USD10 billion, with nearly 4,000 deals with total value of USD48.8 billion. In 2017, the total value of M & A deals in Vietnam reached USD10.2 billion, the highest level ever and up to 175% compared to 2016.
According to experts, the main drivers of Vietnam M&A activity in the past year were from investment and market access of countries in the region such as Thailand, Singapore, Japan and Korea.
Forecasts for 2018, M&A values may reach USD6.5 to 6.9 billion. In the short term, the size of the M & A market in Vietnam could surpass USD5 billion for the period 2014-2016 and stabilize at USD6-6.5 billion. M&A deals will concentrate on consumer goods, retail and real estate. In addition, the fields of telecommunications, energy, infrastructure, pharmaceuticals and education are expected to contribute significantly to M & A activities in Vietnam in the next years, especially in divestments of large SOE equitization and the involvement of foreign investors.