According to KPMG Viet Nam, M&A deals in Viet Nam reached US$5.7 billion over the last 10 months of the year, a year-on-year decrease of 35.3 percent.

During the reviewed period, Singapore was the largest acquirer in Viet Nam’s market with US$1.2 billion, followed by the U.S. and the Republic of Korea with US$570 million and US$370 million, respectively. 

Top sectors attracting M&A activities included consumption (US$1.2 billion), real estate (US$1 billion), industry (US$800 million) and energy (US$600 million). 

The M&A market in Viet Nam is predicted to soon attract a lot of attention from foreign investment funds thanks to the nation’s macro-economic stability and positive growth in economic prospects. 

According to Nguyen Cong Ai, Deputy General Director of KPMG Viet Nam, the nation is evaluated as a spotlight in the global economy with the GDP growth forecasted to accelerated to 7.5-8 percent in 2022 and 6.5 percent in 2023, which may pave the way for the development of the M&A market this year and upcoming years. 

Along with economic growth, M&A activities in Viet Nam have also soared, driven by progress in equitization and market liberalization, as evidenced by supportive market regulations for foreign investors. 

From the quiet days of a handful of small value deals in the late 1990s, the nation’s M&A market has been recording over 500 deals each year recently. Larger deals have become more common, with 62 valued at US$100 million or more over the last five years. 

Although challenges remain, the outlook for M&A activities in Viet Nam is bright, especially as border restrictions have been relaxed and the country is heading towards post-pandemic recovery.

In the 2014-2021 period, annual average deal count increased more than three-fold to over 450. Transaction size also significantly improved, with 196 transactions having over US$50 million in value; more than double the figure in the 2005-2013 period.

M&A activities recovered strongly in 2021, with a record year seen in deal volume (651) and value (US$8.8 billion), in line with global M&A trends and due to the unleashing of accumulated capital and pent-up deal-making demand.