Vietnam’s M&A Activities 2011

M&A transactions are also expected to continue to see strong growth in the foreseeable future.“M&A in Vietnam will flourish in the last quarter of 2011 and the following years, with an annual growth rate of 30 percent to 40 percent,” said The Competition Management Department (under the Ministry of Industry and Trade) at the Vietnam M&A Forum 2011 held in Ho Chi Minh City on June 9, 2011.

The top six business fields eyed by foreign partners for M&A deals include food and beverage; consumer goods; retail; pharmacy; storage and logistics; and construction and materials. However, M&A deals in the infrastructure sector are expecting to massively increase because of Vietnam’s huge appetite for private capital investment in the areas of power supply, bridges, roads, as well as air and seaport projects. Likewise, the manufacturing sector is also likely to see many M&A deals, as stated by the European Chamber of Commerce in Vietnam.

Among countries and territories investing in Vietnam’s M&A market, Japanese companies lead the list with a total investment of over US$236 million, mainly in food processing, telecommunication services, finance, and industries. The sharp growth in the total amount of Japanese investments in Vietnam has been primarily explained by the fact that the investors tend to be relocating their production bases from Japan to Southeast Asia.

Offering an easy way to penetrate emerging markets and a quick way for enterprises to grab technology and build trademarks, the M&A channel is a great option for foreign enterprises looking to invest in the Vietnamese market. Moreover, the country’s growing economy and loosening credit policy have been creating a boom in demand for M&As in the aftermath of the Global Financial Crisis.

(Source: vietnam-briefing.com)