Vietnam business Mergers & Acquisitions market getting hotter!
Especially, the first months of 2016 observe the increase of M&A value which is estimated to have surpassed $ 3 billion, 28% higher than 2015 and predicts an exciting year for M&A in Vietnam .
Not only set a value record, 2015 and the first half of 2016 observe many M&A billion business deals, which importantly impact on many industries, markets and the economy in general.
Over the past decade, M&A has emerged as one effectively capital mobilization channel, contributing to the diversification of investment channel into Vietnam economy, also accelerate the process of restructuring the economy.
Through M&A business, management ability of many Vietnam businesses have been improved and spread widely under the positive impact of international economic integration.
The Ministry of Planning and Investment said that the prospect of M&A is getting better in the future, with the "throne" of several hot industries such as energy, banking, infrastructure, hotel...
In the latest twist, The Ministry of Planning and Investment has announced that M&A 2016 Forum will be held in Ho Chi Minh City in August, attracting the participation of corporations, joint stock companies, consultants, law firms, investment and development fund.
2016 marked an important milestone for international integration when Vietnam completed the Trans-Pacific Partnership (TPP) negotiations, joined the ASEAN Economic Community (AEC), signed bilateral trade agreements with EU, South Korea and others countries and regions. A new vision for businesses and investors are identified. When investment or running M&A in an ASEAN country, investors are reaching a wider market with 600 million people including young workers, and the rapidly rise of the middle class.
Recently, M&A is running actively, in which 60% of the deal is between businesses (companies) within the country, with the average value about $ 5 million / season. By contrast, foreign investors often seek and implement M&A in a larger scale, from a few millions dollars to hundreds millions dollars.
Investors interested in real estate, retail, consumer products, and food manufacturers ... According to statistics, 2015 M&A result reach $5.2 billion and $ 3 billion for the first 6 months of this year. Experts forecast, the total transaction value of M&A this year will surpass $6 billion and continues to grow in the coming years.
Deputy Minister of Ministry of Planning and Investment Dang Huy Dong said, the removal of barriers will promote M&A to be a channel for capital mobilization and effectively motivate the restructuring of economy; also contribute to change the way of management and improve the efficiency of business administrative operations.
Therefore, in order to operate the M&A actively, the authorities need to improve the legal provisions system, especially the issues related to accounting, procedures, notary, insurance and legal services.
For any businesses, including state-owned enterprises those were equitized, it is suggested to complete fully and carefully any requirement, submit financial reports accurately and timely to become an attractive ‘goods’ for financial investors within Vietnam and worldwide.
