Deputy Minister: Vietnam’s M&A market poised for a comeback

Despite the ongoing challenges, Vietnam anticipates a resurgence in merger and acquisition (M&A) activity in the near future, according to Deputy Minister of Planning and Investment Nguyen Duc Tam.

Speaking at the M&A Vietnam Forum 2024 on November 27, Mr. Tam expressed optimism about market recovery. “Investors will return, and the market will become vibrant once more,” he said.

Vietnam’s M&A market experienced a robust first nine months of 2024, with total transactions reaching $3.2 billion - a 45.9 per cent increase compared to the same period of 2023. Real estate, consumer goods, and industrial sectors accounted for 88 per cent of value.

However, a slowdown was then observed, with the ten-month period seeing 2,669 foreign investment transactions, encompassing equity contributions and acquisitions, amounting to over $3.68 billion, reflecting a 10.4 per cent decline in transaction numbers and a 29 per cent fall in value year-on-year.

Mr. Tam attributed this slowdown to temporary factors and overall global market trends. He noted that the global economy has yet to fully recover from the Covid-19 pandemic, and geopolitical instability continues to create uncertainty.

Nonetheless, he believes the country’s M&A market remains attractive and safe for foreign investors, offering significant growth potential and investment opportunities.

Vietnam’s overall economic performance this year has been positive, with FDI being a highlight. The country attracted nearly $27.3 billion in FDI in the first ten months, up 1.9 per cent year-on-year, and disbursed approximately $19.6 billion, up 8.8 per cent.