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At the Vietnam Mergers and Acquisitions Forum 2024 (M&A Vietnam Forum 2024), Deputy Minister of Planning and Investment, Nguyen Duc Tam, emphasized that M&A (Mergers and Acquisitions) is not only an effective tool for raising capital but also plays a positive role in restructuring the economy, innovating growth models, and privatizing state-owned enterprises. M&A is increasingly becoming an integral part of Vietnam’s economic development strategy.
2024 Economic and Social Situation and Challenges
Deputy Minister Nguyen Duc Tam stated that in 2024, Vietnam’s economy showed strong signs of recovery. Despite global economic difficulties and challenges, Vietnam’s GDP growth is forecasted to reach between 6.8% and 7%. Foreign direct investment (FDI) has also seen positive signs, with nearly USD 27.3 billion in foreign investment flowing into Vietnam, a 1.9% increase compared to the previous year.
However, the M&A market in 2024 has faced some stagnation, with only 2,669 foreign investment and equity stake deals, a 10.4% decrease in volume and a 29% drop in value compared to the previous year. Deputy Minister Nguyen Duc Tam believes this decline is mainly due to global market trends and the impact of geopolitical fluctuations as well as the global economy still recovering from the pandemic.
M&A and Vietnam’s Competitive Advantage
Despite these challenges, the M&A market in Vietnam remains highly regarded by foreign investors due to its safety, significant growth potential, and abundant investment opportunities. Deputy Minister Nguyen Duc Tam predicts that in 2025, when the economy fully recovers, M&A activities will return strongly, especially as institutional and legal issues improve.
Solutions for Developing M&A in 2025
In the 2025 socio-economic development plan, the Vietnamese government aims for GDP growth of 6.5% to 7%, with a determination to achieve even higher growth rates. To achieve this, key solutions will be implemented, including institutional reforms, removing obstacles in investment procedures, and improving the legal environment for M&A transactions.
Deputy Minister Nguyen Duc Tam announced that the Ministry of Planning and Investment will continue to finalize important draft laws, including amendments to the Public Investment Law, the Bidding Law, the PPP Law, and other laws related to investment and planning. These projects will provide a strong legal foundation to promote M&A activities and attract more investment in potential sectors such as high technology, semiconductors, artificial intelligence, and clean energy.
Expectations from Major Projects
Deputy Minister Nguyen Duc Tam also pointed out that resolving legal issues in real estate projects will channel large amounts of capital into the economy. Currently, there are 65 real estate projects with a total investment capital of up to VND 129 trillion facing legal challenges, and addressing these issues will help attract more investment into the market.
Conclusion
With strong solutions and improvements in institutional frameworks, Vietnam’s investment environment will become more attractive to foreign investors. M&A will not only serve as a critical tool for raising capital but also in promoting sustainable economic development and restructuring Vietnam’s economy.
Recently, following ASL LAW’s success at the Vietnam Mergers & Acquisitions (M&A) Forum 2023, where ASL LAW was recognized as the Outstanding M&A Advisor for the period 2009-2023, ASL LAW was once again honored as the Outstanding M&A Advisor of 2023-2024 at the 16th Vietnam M&A Forum.
ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
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