In recent years, Mergers & Acquisitions (M&A) have gained significant attention in the Vietnam market. As the country’s economy continues to grow and integrate into the global market, M&A activities have become a prominent strategy for companies to expand their operations, increase market share, and capitalize on emerging opportunities.
1. In brief
The Foreign Investment Agency has reported that Vietnam continues to attract foreign investment, with nearly USD 5.45 billion in capital recorded in the first quarter of 2023. This demonstrates the growing appeal of Vietnam as an investment destination, thanks to its strong economic growth. Sectors such as technology, media, and telecommunications are expected to see increased deal-making due to digitalization, while the automotive and industrial manufacturing sectors may experience divestments related to sustainability.
2. Key legal issue
Businesses in most industries or growth stages have difficulty raising capital. The process of raising capital in the past two years has often been prolonged because investors have become more cautious, requiring more information and detailed financial data to verify their investment thesis. As a result, the probability of success of M&A transactions becomes more fragile than ever.
Examples of foreign investment restrictions include: foreigners can only own up to 99.99% of the capital of an advertising business, foreign-invested enterprises can only purchase buildings for their own use and cannot sublease them to others.
3. Challenges that M&A deals are facing
– The first and most important difficulty is that investors are shifting their investment appetite to sustainable profitable business models.
– Besides, most businesses have difficulty in negotiating business valuation.
4. Conclusion
In conclusion, the M&A market in Vietnam during the first half of 2023 has witnessed significant growth and promising opportunities. The thriving economy, favorable investment environment, and government support have attracted both domestic and foreign investors to engage in M&A activities across various sectors. While challenges such as regulatory complexities and cultural differences remain, the market has shown resilience and adaptability.

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