Econ
Huge opportunities in Vietnam for M&A
Vietnam is considered one of the most important destinations for foreign firms those are looking for investment opportunities through mergers and acquisitions (M&A) in the ASEAN region.
The news was released at the Bridging ASEAN seminar on mergers and acquisitions held recently with the participation of more than more than 100 business executives from Vietnam and other countries.
There are huge opportunities across ASEAN for M&A in almost every sector, particularly in Vietnam, participants at the seminar said.
Ralf Pilarczyk, head of M&A for ASEAN, Standard Chartered Bank, said that Vietnam is a great investment destination. Through this bank, investors are looking for many opportunities in key areas such as consumer and retail, industrial sector as well as metallurgical and mining projects.
Pilarczyk said last year there were over 4,200 global cross-border M&A transactions valued at over US$100 million and they were totally worth $5.1 trillion.
North America and Europe accounted for 76 percent of the global deals (by value) and the Asia Pacific for 18 percent, driven by China.
ASEAN accounts for 9 percent of the world’s population and 2 per cent of global M&A. The bloc saw 116 deals worth $78 billion last year, including four deals in Vietnam valued at $6 billion.
Research by Pilarczyk and Tina Tejwaney, an M&A expert from his bank, found that some of the main drivers for Vietnam’s M&A deals are its market size with more than 90 million people, strong growth prospects and the government’s strong efforts to push for State firms’ equitisation.
Privatization is an extraordinary program, Pilarczyk said, adding that it provides tremendous opportunities for foreign investors to buy into the Vietnamese economy across various sectors, and Vietnam would have huge opportunities to develop its capital market and attract foreign investment.
This was evidenced by major deals in retail and consumer sectors that Thai investors have made over the past few years, such as the acquisition of the France’s Big C retail chain Casino by Central Group and the acquisition of 53.59 percent stake in Saigon Beverage Corporation (Sabeco) made by the Thai Beverage Public (ThaiBev) through Vietnam Beverage Ltd. by the end of last year.
According to Standard Chartered M&A experts, the above two deals were among the largest M&A deals in the ASEAN region recently.
Last year, Standard Chartered Bank was also the distribution agent for the first VND bond issue of Mobile World, Vietnam's leading telephone retailer.
Theng Bee Han, president of the Malaysia Business Chamber Vietnam, said that M&A activities are increasing across Southeast Asia, capitalizing on the investment boom in the emerging markets in the region.
There were a lot of M&A activities in Vietnam last year, particularly in the real estate sector where transactions amounted to nearly $1.5 billion, he said.
The deals involved major players from Japan, South Korea, Malaysia, Singapore and mainland China, he added.
“Vietnam, Malaysia and [generally] ASEAN’s wider integration with the global economy offers many new opportunities for M&A.”
However, challenges remain like regulatory hassles and how to add value to companies after inking an deal, experts said, suggesting that Vietnam needs to adjust its regulatory framework in the next few years to engage foreign investors better in accessing information and negotiating deals before they invest.
"Bridging ASEAN" was hosted by Standard Chartered Bank in collaboration with the Malaysian Business Chamber Vietnam and Singapore Business Group.
Last year, Standard Chartered Bank also held a bridging event last May.
There are huge opportunities across ASEAN for M&A in almost every sector, particularly in Vietnam, participants at the seminar said.
Vietnam had four M&A deals valued at $6 billion last year
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Pilarczyk said last year there were over 4,200 global cross-border M&A transactions valued at over US$100 million and they were totally worth $5.1 trillion.
North America and Europe accounted for 76 percent of the global deals (by value) and the Asia Pacific for 18 percent, driven by China.
ASEAN accounts for 9 percent of the world’s population and 2 per cent of global M&A. The bloc saw 116 deals worth $78 billion last year, including four deals in Vietnam valued at $6 billion.
Research by Pilarczyk and Tina Tejwaney, an M&A expert from his bank, found that some of the main drivers for Vietnam’s M&A deals are its market size with more than 90 million people, strong growth prospects and the government’s strong efforts to push for State firms’ equitisation.
Privatization is an extraordinary program, Pilarczyk said, adding that it provides tremendous opportunities for foreign investors to buy into the Vietnamese economy across various sectors, and Vietnam would have huge opportunities to develop its capital market and attract foreign investment.
This was evidenced by major deals in retail and consumer sectors that Thai investors have made over the past few years, such as the acquisition of the France’s Big C retail chain Casino by Central Group and the acquisition of 53.59 percent stake in Saigon Beverage Corporation (Sabeco) made by the Thai Beverage Public (ThaiBev) through Vietnam Beverage Ltd. by the end of last year.
According to Standard Chartered M&A experts, the above two deals were among the largest M&A deals in the ASEAN region recently.
Last year, Standard Chartered Bank was also the distribution agent for the first VND bond issue of Mobile World, Vietnam's leading telephone retailer.
Theng Bee Han, president of the Malaysia Business Chamber Vietnam, said that M&A activities are increasing across Southeast Asia, capitalizing on the investment boom in the emerging markets in the region.
There were a lot of M&A activities in Vietnam last year, particularly in the real estate sector where transactions amounted to nearly $1.5 billion, he said.
The deals involved major players from Japan, South Korea, Malaysia, Singapore and mainland China, he added.
“Vietnam, Malaysia and [generally] ASEAN’s wider integration with the global economy offers many new opportunities for M&A.”
However, challenges remain like regulatory hassles and how to add value to companies after inking an deal, experts said, suggesting that Vietnam needs to adjust its regulatory framework in the next few years to engage foreign investors better in accessing information and negotiating deals before they invest.
"Bridging ASEAN" was hosted by Standard Chartered Bank in collaboration with the Malaysian Business Chamber Vietnam and Singapore Business Group.
Last year, Standard Chartered Bank also held a bridging event last May.
