Vietnam M&A market trends: The Consumer and Technology Market's Golden Age
- 198
- Entrepreneur
- 20:55 28/09/2022
DNHN - According to Masataka Yoshida, global director of cross-border mergers and acquisitions (M&A) services at RECOF Corporation (Japan), Vietnam's M&A market in technology and consumption will continue to grow strongly in the coming years, making it a promising investment for traders, bringing resources and development opportunities to businesses.
![Japanese and Vietnamese business representatives gathered as guests during RECOF's 8th-anniversary celebration in Vietnam in 2019. Image: RECOF. Japanese and Vietnamese business representatives gathered as guests during RECOF's 8th-anniversary celebration in Vietnam in 2019. Image: RECOF.](https://media.doanhnghiephoinhap.vn/uploads/2022/09/28/1-1664373214.jpg)
Masataka Yoshida, worldwide director of cross-border mergers and acquisitions (M&A) services at RECOF Corporation (Japan), projects that the bloc's M&A volume will continue to rise at the same rate as in the first eight months of this year in late 2022 and early 2023.
By then, the market would have absorbed the majority of interest rate adjustments; inflation might have been managed, boosting investor and consumer confidence. M&A activity in Vietnam will continue.
Mr Yoshida continued, "As we expect, investors will seek purchases focused on joining the Vietnamese market, or reinforcing and expanding their presence, rather than looking for inexpensive assets."
![Mr Masataka Yoshida Mr Masataka Yoshida](https://media.doanhnghiephoinhap.vn/uploads/2022/09/28/1-1664373238.jpg)
There are 13 deals announced this year from Japan to Vietnam in the industries of banking, real estate, energy, and so on. According to RECOF statistics, Vietnam ranks third among Eastern South Asian nations, trailing only Singapore (31 transactions) and Indonesia (14 deals). The value of M&A investments in Vietnam might rise if several large transactions occur in the latter months of the year.
In terms of the number of M&A deals by Japanese investors in Southeast Asia over the last five years, Vietnam has consistently ranked second (4/5 years), while transaction value has increased. The number of large-scale transactions grows every year. Vietnam is ranked second in 2021, slightly behind Singapore. This trend is expected to continue in the long run, since Vietnam has the third biggest population among Southeast Asian nations, with almost 70% of the population of working age; the GDP per capita annual growth rate in Southeast Asia is the highest in the region, at 6% over the last decade. Mr Yoshida examined how Japanese firms consider these elements when they plan and strategy to develop globally.
Mr Yoshida stated that recently, Japanese investors have paid close attention to technology and consumer products.
![Some prominent recent deals in this space include Mizuho Bank's $200 million investment in Momo. Some prominent recent deals in this space include Mizuho Bank's $200 million investment in Momo.](https://media.doanhnghiephoinhap.vn/uploads/2022/09/28/1-1664373267.jpg)
"The role of technology in today's M&A market cannot be overstated. As the demand for digital transformation grows, we anticipate increased M&A activity in software and cloud services, IT security, and other infrastructure-enabled technologies "Yoshida stated.
According to RECOF statistics on the number of M&A transactions in Japan during the last three years per industry, information technology leads with 11/78 deals. Some prominent recent agreements in this space include Mizuho Bank's $200 million investment in Momo and Mynavi's investment in NAL Solutions, a software development joint venture aimed at alleviating Japan's IT engineer shortage.
Indeed, Vietnam's dynamic consumer market is particularly appealing to investors, with the assumption that the market would continue to develop as the middle-income class grows. Japanese consumer goods merchants such as AEON Group, Muji, Uniqlo, and others established additional stores in Vietnam in the first half of 2022, with diverse retail concepts.
"However, the retail industry has yet to demonstrate its full potential in M&A activity, owing in part to tight laws for foreign investors," Mr Yoshida added.
During the epidemic, Vietnam has emerged as an appealing destination for supply chain diversification, growing to become an important Asian manufacturing powerhouse. Many international technology businesses, like the Danish toymaker Lego, have relocated operations to Vietnam, with plans to invest more than $1 billion in the development of a facility in Binh Duong.
Apple is also shifting the manufacture of the Apple Watch and MacBook to Vietnam as part of a bigger effort to increase supply chain resiliency. Apple suppliers Foxconn and Luxshare Precision Industry are rumoured to have begun pilot manufacture of the Apple Watch in the North. Corporations from Japan, South Korea, and other global technology businesses are also aiming to establish production bases in Vietnam rather than China.
Vietnam will continue to be an appealing investment destination in the future, with FDI promotion policies and advantageous tax legislation for FDI firms.
P.V
Related news
- Businesses need to increase adaptability to join the global supply chain
- Agricultural exports are forecast to reach nearly 60 billion USD in 2024
- General Secretary Nguyen Phu Trong: An outstanding politician, a great theorist
- Why is bank security very important?
- Export businesses face difficulties as sea freight rates rise
- Banks and challenges in funding green projects
- Strategies for innovation to adapt and seize opportunities by enterprises
- The Ho Chi Minh City Friendship Dialogue and the Ho Chi Minh City Economic Forum will take place in September 2024
- Why is it necessary to implement the direct electricity purchase mechanism soon?
- How are bank bond interest rates attractive to investors?
- Bamboo Airways aims to break even and become profitable by 2025
- Overcoming rising input costs and supply challenges in business
- The strong growth of air travel demand in Vietnam
- New proposal on petroleum business: Enterprises can have the freedom to set retail prices
- Electric vehicle market share in Vietnam: Development trends and challenges
- Farm School - What legal framework is needed for this new model?
- Digital transformation in the banking sector: The future direction of financial services
- EuroCham: European enterprises confident in Vietnam's long-term economic growth
- The journey from Nghe An fields to the TH True Milk brand
- Why support taxi businesses transitioning to electric vehicles?
Đọc thêm Entrepreneur
CEO Minh Hang - Hai Dang Media: Solving businesses' "pain points"
After nearly two years since its establishment, Hai Dang Media, led by entrepreneur Minh Hang, has built a reputation and brand thanks to its effective solutions that guide businesses in the right direction and promote sustainable development.
“Profile” of the new startup partnering with VinFast
Recently, Otoklix announced the signing of an agreement with VinFast, becoming an authorized service provider for customers across Indonesia.
Vietnam-Japan promotes innovation to attract investment in startups
Japanese enterprises have experience, while Vietnamese startups have youth, good capacity, and good ideas... If enterprises promote cooperation, the chances of success are very high.
Vietnamese business association in the UK promotes Vietnam-UK economic cooperation
The Vietnamese Business Association in the UK (VBUK) recently held a member gathering event titled “VBUK Summer Together” in Hackney, London.
Entrepreneur Bui Xuan Hien and the journey of building Long Thanh Phat transport brand
Over 14 years of development and growth, Long Thanh Phat Transport Service Trading Co., Ltd. has gradually established itself as one of the leading transport brands in Vietnam. The man behind this success is Director Bui Xuan Hien.
Miss “Clay pot rice” Ha Kim Anh: 32 years building the no. 1 clay pot rice brand in Binh Thuan
For Kim Anh restaurant, each meal is not just food but also dedication and love for culinary arts. This meticulous care in every step, from selecting fresh ingredients to sophisticated cooking methods, has created the unique flavor of the brand.
Honoring Professor and Academician Nguyen Van De for creativity, dedication, and contributions to social progress
On April 24, 2024, in Dubai, UAE, the International American University (IAU) honored and awarded the honorary title of Academician to Prof. Dr. Nguyen Van De for his creativity, dedication, and contributions to social progress.
Vietnamese businesswoman awarded Visionary CEO of the Year
Labor Hero, Ms. Thai Huong, has been recognized as the Visionary CEO of the Year, a prestigious accolade highlighting her exceptional leadership and unwavering contributions to green and circular economies grounded in sustainable development.
The portrait of the first Vietnamese to list a company on Nasdaq
After spending nine months and millions of dollars preparing, Dennis Nguyen successfully brought Society Pass to Nasdaq, making it the first Vietnamese-owned company publicly listed in the U.S.
Thaigroup appoints 8x generation female CEO
Thaigroup Corporation has recently announced the appointment of Ms. Bui Thai Ly as the CEO, effective from June 12, 2024.