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.
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."
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.
"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
- Enhancing green credit efficiency: A new direction for sustainable economy
- The State Bank of Vietnam studies the roadmap to remove credit room
- Completion of the pre-feasibility study report for the North-South high-speed railway project
- Secretary of the Long An Provincial Party Committee: Entrepreneurs and businesses must follow the motto "3 musts - 3 dares - 3 increases"
- Two land rent reduction plans proposed to support businesses
- Transparent mechanism needed for renewable energy project development
- Small and medium enterprises have many advantages for green transition to access EU market
- Regulation on temporary exit suspension for tax debtors: Perspectives from the tax authority
- Prime Minister Pham Minh Chinh emphasized six key significances of the Fourth Industrial Revolution Center
- Why is it necessary to promote the process of green technology innovation in agriculture?
- Digital transformation in the retail industry – Towards sustainable development
- The banking sector sacrificed profits to support the economy
- The billionaire who donated 1 million USD to help Vietnam recover from the typhoon
- Practical applications of carbon credits in the economy. Part XXI:Carboncor Asphalt - An effective solution for Vietnam to achieve net zero emissions
- Ho Chi Minh City allocated funding to support small and medium enterprises in digital transformation
- Real estate businesses and macroeconomic challenges
- VINASME and VISA collaborated to promote financial solutions for small and medium-sized enterprises
- Vietnamese brands reaching international markets
- Hòa Phát Group leaders receive major pay hike during steel market crisis
- Apartment prices continue to rise far beyond workers' incomes
Đọc thêm Entrepreneur
The impressive achievements of Zalo's founder Lê Hồng Minh
The founder of Zalo is also known as the founder of VNG. From his passion for gaming, he became a pioneer in the industry and built a billion-dollar empire.
Green Enterprise with sustainable strategy and ecological mindset
Recently, on August 29th, Phuc Khang Corporation (PKC) was honored with the title of “Green Enterprise of Ho Chi Minh City 2024.”
The massive fortune of the businesswoman behind the Phê La and Katinat chains
Not only is she a leader of several famous brands in the F&B industry such as Phê La, Katinat, and Dì Mai restaurant, but businesswoman Trương Nguyễn Thiên Kim also possesses a fortune worth thousands of billions of VND on the stock market.
CEO Lê Nguyên Hòa – LHLEGAL Law Firm honored to present opinions to General Secretary Tô Lâm
On the afternoon of August 22, at the Presidential Palace, Lawyer Lê Nguyên Hòa – Executive Director of LHLEGAL Law Firm, along with the delegation of the VINASME, had the honor to meet with General Secretary and President Tô Lâm.
Vina Chain: Seizing opportunities with a unicorn project
Recently in Hanoi, an event took place featuring a collaboration between Vietsmile Investment and Development JSC. and Dream Maker company, launching the Vina Chain platform-an opportunity to embrace trends with the unicorn project VPC.
Dr. Vũ Tiến Lộc - A business inspirer
During his 18 years as the President of VCCI, Dr. Vũ Tiến Lộc made significant and clear personal contributions to the business community and entrepreneurs. His sudden departure has left us with deep sorrow and a great void.
Vietnam's representative honored in Top 150 Global AI Pioneers
This year's list honors leaders worldwide who are pioneering the use of AI to address business and technological challenges for global enterprises.
Lê Thị Hồng and her journey from bank branch manager to successful businesswoman
After many years working in the financial and banking sector, with great ambitions, Lê Thị Hồng (Pinky Le) decided to quit her job at the bank to take a new direction for herself and become a successful businesswoman.
Asia's richest man intends to invest billions of USD in multiple projects in Vietnam
Gautam Adani, Chairman of Adani Group, expressed his desire for the Vietnamese government to direct, facilitate, and propose some suggestions to help the group boost its investment activities in Vietnam.
Chairman of Ha Do Group resigned
The Chairman of Ha Do Group has announced his resignation and has been preparing a succession plan, which was mentioned during the annual general meetings in 2022 and 2023.