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Strong economic growth creates platform for M&A market

Vietnam’s economic growth is forecast to reach 8% this year before falling to 6.5% in 2023. The strong growth has created a positive “platform” for investment and business activities, especially mergers and acquisitions (M&A).
Strong economic growth creates platform for M&A market ảnh 1The strong growth has created a positive “platform” for investment and business activities, especially mergers and acquisitions (M&A). (Photo: Vietnam Investment Review)

Hanoi (VNA) – Vietnam’s economic growth is forecast to reach 8% this year before falling to 6.5% in 2023. The strong growth has created a positive “platform” for investment and business activities, especially mergers and acquisitions (M&A).

Data from KPMG, a global network of professional firms providing audit, tax and advisory services, showed that in the first 10 months of 2022, the total value of M&A deals in Vietnam reached 5.7 billion USD, down 35.3% compared to the same period in 2021.

The scale of the M&A market is slowing down in terms of the number and value of deals. In 2021, there were more than 700 deals, but in the first 10 months of 2022, the number was only about 350. The average value of a deal also decreased from 31 million USD to about 15 million USD.

However, foreign investors still view Vietnam in general and its M&A sector in particular as a safe, attractive and promising market, Deputy Minister of Planning and Investment Tran Quoc Phuong told Vietnam Investment Review.

Both domestic and foreign investors have shown confidence in solutions taken by the Vietnamese Government to fight the COVID-19 pandemic, manage the macro economy, and improve the domestic investment environment, he continued.

World Bank (WB) experts attributed the 122% jump in foreign direct investment (FDI) in Vietnam to 3.7 billion USD in October to major investments in new production and business facilities in electricity, gas and water.

Vietnam’s strategy for foreign investment cooperation for 2021-2030 has just been deployed, with new institutions and policies, including incentives for large-scale projects and others in the high-tech sector of great influence.

The Vietnamese government has established a working group in charge of removing difficulties to projects so they can push ahead with implementation, while calling for further investment in the country.

The efforts are expected to help lure more foreign investment to Vietna🅠m and accelerate recovery of the l♚ocal M&A market./.

VNA

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