Business

Vietnam's M&A market possibly reaches US$7 billion by 2022

SGGP
Experts predict that the M&A market in Vietnam will likely make the V-shaped recovery in the period from 2021 to 2022, reaching US$4.5 billion-US$5 billion by 2021 before rebounding stronger with a value of $7 billion by 2022.

The press conference on the Vietnam M&A Forum 2020 with the theme "Rising in a new normal state". (Photo: SGGP)

The press conference on the Vietnam M&A Forum 2020 with the theme "Rising in a new normal state". (Photo: SGGP)

The total value of global M&A in the first six months of this year is $901.7 billion, 52 percent lower than the same period last year. Meanwhile, the published volume was 6,943 deals, down 32 percent from that in the same period.

In the Vietnamese market alone, the total value of M&A deals in 2019 reached $7.2 billion, accounting for 94.7 percent of that in 2018. Due to the impacts of the Covid-19 pandemic, as well as some other factors, the value of M&A deals this year is expected to continue declining, touching an estimated of $3.5 billion, equal to 48.6 percent of that in 2019.

However, in the last six months of 2019 and 2020, the market still saw remarkable deals, especially the acquisitions or restructuring of private corporations. Foreign investors, especially investors from Singapore, Thailand, South Korea, and Japan, are still actively participating in M&A activities in Vietnam.

The progress of equitization and divestment in 2019 and the first nine months of 2020 continues to be muted and has not been implemented as planned. However, Vietnam is emerging as a safe and attractive investment destination after successfully controlling the Covid-19 pandemic.

The organizing committee of the Vietnam M&A Forum 2020 with the theme "Rising in a new normal state" on November 5, said that the forum would be held on November 24 in Ho Chi Minh City.

The M&A Forum 2020 will attract about 500 representatives of domestic and international enterprises and investment funds, who decide and create 85 percent of the value of all M&A deals taking place in Vietnam.

By Anh Phuong – Translated by Gia Bao

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