The value of M&A deals has strongly increased, particularly during the 2009-2011 period. The market saw 295 deals worth US$1.14 billion done in 2009, and 245 transactions valued at US$1.75 billion, conducted in 2010.

In 2011, a total of 266 M&A deals raised US$4.7 billion, in total value a year-on-year increase of 135%.

Last year, the M&A market was worth a total of US$4.95 billion from 157 deals, a rise of 5.3%t in value compared to the previous year. Despite the decrease in the number of deals, the large transactions helped keep the market value at a stable level. 

In December 2012, Vietinbank, one of the leading State-owned commercial banks in Vietnam, collected US$743 million after selling a 20% strategic stake to the Bank of Tokyo Mitsubishi UFJ (BTMU).

Thailand’s Siam Cement Group acquired 85% of Prime Group’s shares worth US$240 million in the same year.

The first six months of this year also saw various M&A deals, particularly an impressive deal of the largest commercial property company in Vietnam, VinGroup, which collected US$470 million from selling one of its commercial centres to its Vietnamese partner VIPD.

Recently, foreign investors showed their greater interest in Vietnam’s M&A market, particularly Japanese investors.

Vietnam’s market in 2013-2014 still creates opportunities for both foreign investors and domestic enterprises with an increasing trend of transferring from foreign direct investment (FDI) to indirect investment through M&A, forecast specialists in the field.

Nguyen Quang Thuan, General Director of Stoxplus Financial Media Corporation, predicts that the M&A market will be much more dynamic in property, cooking and drink, cement, finance and banking.

“Our database shows that there are presently 10 M&A food and drink deals in the process of negotiation. Foreign investors, specifically Japanese investors, will continue publicising new deals in the coming time,” says Thuan.

Meanwhile Robert Tran, CEO of Canada’s Robeny Consultancy Group in Asia and the US, says the pharmaceutical industry, pet food and education will receive more attention in the near future, adding that his company has received various requests from American and Canadian small and medium-sized enterprises about pharmaceutical factories in Vietnam.

This August, the largest annual M&A forum in Vietnam will be held in Ho Chi Minh City and is expected to attract leaders from more than 500 domestic and international corporations, groups and companies.

It will focus on the quality of investment connection activities in order to create greater cooperation opportunities, says Dang Xuan Minh, the Deputy Head of the forum’s organising board, when talking to Dau Tu (Vietnam Investment Review) about the event.

This forum will sum up M&A activities in the country over the past five years and forecast the trend and opportunities in the coming years.

VOV