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According to experts at the Vietnam M&A Forum on November 24, the Vietnam merger-acquisition (M&A) market in the near future will strongly recover as investors are in a “hidden” stage to wait for some necessary conditions.
Positive prospects
According to the Vietnam M&A Market Report 2019 – 2020, in the period of 6/2019 – 10/2020, the main industries attracting M&A deals are real estate, finance – banking, industry, retail, logistics. , agriculture, pharmaceuticals – health, construction. The remarkable highlight in recent years is the restructuring and expansion of business cooperation with domestic and foreign partners by private economic groups in Vietnam. A lot of deals were done by Vietnamese corporations such as Masan, Vingroup, Vinamilk, Gelex, REE, Thaco, PAN Group … However, the lack of hit deals led to the fact that the value of Vietnam’s M&A market 2020 is decreasing in the previous year. According to the Vietnam M&A Forum, this year, the domestic M&A market may only reach about 3.5 billion USD.
According to the Chief Editor of the Investment Newspaper Le Trong Minh – Head of the Organizing Committee of the Vietnam M&A Forum 2020, Vietnam’s prospect is considered very positive, thanks to its efforts to strongly reform the business investment environment effective disease control and the ability to take advantage of opportunities to attract international investment capital flows is shifting.
Sharing the same judgment, Mr. Dang Xuan Minh – a member of the M&A Forum research group predicted that M&A activities could increase again from mid-2021, when the economy recovers and global investment flows strongly shifted. stronger. Market size may soon return to $ 5 billion. According to Mr. Dang Xuan Minh, Vietnam is emerging as a preferred location by corporations of enterprises to reposition their production chains.
A survey by the Organizing Committee of the Vietnam M&A Forum 2020 noted that many organizations and individuals as consultants, buyers and sellers are going through quite a busy time to bring businesses. business, despite certain inconveniences with communication and meeting. Therefore, an increase in the size and value of the M&A deal in the Vietnamese market seems to be waiting for a lot of people in the near future, just waiting for some necessary conditions and premises.
The resurgence in a new normal state
Also at the Vietnam M&A Forum 2020, Deputy Minister of Planning and Investment Tran Quoc Phuong said that M&A activities in Vietnam can recover from mid-2021 thanks to many important policies of the Government. In 2020, the Ministry of Planning and Investment has presided over drafting and submitting to the Government and the National Assembly for approval the Law on Enterprises, the Investment Law, and the Public-Private Partnership (PPP) Investment Law with many reforms in the accession procedures. market; create favorable conditions for businesses to invest and do business, including M&A activities.
Notably, for the first time, the list of industries that limit market access for foreign investors will be issued by the Government on the principle of choose – remove. This is an important reform that gives foreign investors the same access to the market as domestic investors for all industries and sectors not listed above. Expecting that the newly signed trade agreements, Deputy Minister of Planning and Investment Tran Quoc Phuong acknowledged, RCEP together with EVFTA or CPTPP will certainly create more motivation for trade and investment liberalization in the region as well as the whole bridge. This is especially meaningful when commercial and investment activities were interrupted due to the Covid-19 epidemic.
According to the Merger and Investment Research Institute (CMAC), the M&A market in Vietnam will recover according to the V-shaped model in the period of 2021 – 2022. The fields of consumer goods, retail and real estate, public Industry will still be the focus of attracting M&A in 2021. However, along with traditional industries, M&A capital flows will branch into emerging industries and fields such as telecommunications – technology, infrastructure, and pharmaceuticals. , education .etc.
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