Customers at a store belonging to electronics retail giant Nguyen Kim, which sold a 49 percent stake to Thailand’s Central Group this year. Photo: H.V
A new wave of mergers and acquisitions (M&A) has been gathering pace in Vietnam since last year, and promises to rise to US$20 billion a year by 2018, news website Bao Dau tu quoted a group of researchers as saying Thursday.
The wave was sparked by recent changes in business and investment policies and laws, according to the group affiliated to the Vietnam M&A Forum, an annual event that will be held in Ho Chi Minh City on August 6.
Last year M&A transactions’ were valued at $4.2 billion, up 20 percent year-on-year, the researchers said.
Their predictions was seconded by M&A consultant AVM Vietnam, which said the average value of an M&A transaction was $11 million last year compared to $3-6 million in 2012, news website VnExpress reported.
All major deals involved foreign businesses which targeted companies with a capital of $20-100 million, it said, expecting investments to come from Asia, the EU, and the US.
Masataka Yoshida, Vietnam manager of Japanese-owned M&A services provider RECOF Corporation, said with the recent positive signs more Japanese investors, including small and medium-sized enterprises, are likely to come to Vietnam this year.
They would break the record of 20 M&A transactions by Japanese companies in 2013, he said.
Investors would not limit their presence to Hanoi and Ho Chi Minh City like now, but expand to other areas and more sectors like logistics and e-commerce, he said.
In a comment on recent happenings in Vietnam’s M&A sector, Nguyen Anh Tuan of the Vietnam M&A Forum organizers was quoted as saying it has become lucrative, helping not only businesses but the whole economy restructure “healthily” and “effectively”.
Nearly 3,000 local and international businesses and venture capital funds are expected to discuss the M&A scene at the upcoming forum.