Could you share the trend of Thai investors continuing to invest in Vietnam through mergers and acquisitions (M&As) and joint ventures in 2025?
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| Leif D. Schneider, country manager for Vietnam at international law firm Luther |
This year marked a turning point in the Thai investment strategy for Vietnam. Thai investors are not just reinforcing their position, but actively deepening their market presence. This shift is no coincidence: it reflects deliberate, long-term planning aligned with Vietnam’s economic momentum.
Recent figures are compelling. In the first nine months of 2025 alone, Thai investment into Vietnam exceeded $900 million in new projects, representing a multiple of the previous year’s inflows. The increase in both deal volume and transaction size indicates that Thai capital is no longer merely testing the waters; it is decisively committing to Vietnam’s growth.
Efforts by both countries to raise bilateral trade turnover to $25 billion in 2026 further reinforce their strategic alignment and regional supply chain strengths.
Why do Thai investors opt for M&As and joint ventures to secure a stronger footprint in the Vietnamese market?
The drivers of this trend extend beyond immediate economic gains; they are structural. Vietnam presents a rapidly expanding consumer market, a strong GDP trajectory, improved infrastructure, and a stable investment environment.
For Thai strategic investors—from listed conglomerates to specialized mid-caps—M&A and joint ventures offer the fastest and lowest-risk route to scalable market access. By acquiring established operators or forming partnerships, investors secure crucial distribution networks, licenses, supplier relationships, local brand recognition, and proven market insight. This approach not only accelerates their understanding of regulatory frameworks but also helps navigate cultural dynamics.
These strategies are clearly reflected in the multi-year expansion programs of leading Thai retailers and consumer brands entering Vietnam.
Deal structures are increasingly sophisticated, adhering to commercially sound and legally compliant patterns. In cases where continuity is critical—such as with retail permits, banking licenses, or energy power purchase agreements—share acquisitions or management joint ventures are often preferred to maintain customer relationships and existing approvals.
Where legacy liabilities pose risk, investors lean towards asset deals reinforced by indemnities and transitional support. In regulated sectors like finance and strategic industries, flexible models are emerging, including minority stakes paired with future options or multi-tier joint venture arrangements.
Beyond the structure of deals, execution discipline is paramount. After a year of significant administrative reforms and legal restructuring in Vietnam, robust due diligence encompassing legal, tax, and compliance perspectives remains a decisive success factor. Early mapping of licenses, confirmation of ownership caps, proactive authority engagement, and clear integration governance are essential in navigating land-use terms, foreign investment reporting rules, and accounting practices.
Thai companies are famous for deals in retail, consumer goods, food and beverages, and packaging. What are the emerging industries witnessing the surge in Thai M&As in Vietnam?
Historically, Thai investment has focused on these traditional areas, where Thai firms possess robust regional capabilities and deliver high local value. However, 2025 has seen rapid diversification. Renewable energy and transition projects are attracting substantial Thai capital, particularly as Vietnam pushes forward with its national energy objectives and its 2050 carbon neutrality roadmap.
Investment in industrial real estate and logistics is also on the rise, paralleling supply chain reorganizations, with growing interest in battery and electric vehicle component manufacturing. The wave of digital transformation is creating opportunities in fintech, driven by liberalization in payment systems and advancements in cloud services. Banking and specialized finance sectors also hold strategic potential, albeit with careful regulatory navigation required.
Vietnam and Thailand share similarities but offer distinct strengths, making them highly complementary. Vietnam brings scale and growth potential, while Thailand contributes expertise and regional operational maturity. The synergy is evident in the combination of Thai manufacturing and packaging efficiencies with Vietnamese logistics, ultimately driving down costs. Moreover, Thai retail wisdom paired with Vietnamese consumer insight accelerates market penetration.
Furthermore, Thai experience in renewable energy implementation aligns seamlessly with Vietnam’s transition goals, while the presence of major Thai conglomerates across sectors such as construction materials, food, retail, and industrial zones creates extensive portfolio-level synergy and cross-sector collaboration opportunities.
What is the outlook of M&A activity involving Thai companies in the Vietnamese market?
The outlook remains positive. Rising capital inflows, growing demand for strategic assets, and improving capital market conditions continue to bolster investor confidence. Successful outcomes will likely favor those investors who combine capital strength with partnership-driven strategies and a nuanced understanding of local governance and regulatory frameworks.
As Vietnam enhances market access and regulatory transparency, investment from Thailand is set to evolve from isolated transactions to deeper regional integration. This shift has the potential to generate jobs, transfer technology, and build supply chain resilience while further advancing ASEAN cooperation.
Vietnam and Thailand are not merely neighboring economies; they are emerging as dual growth engines of ASEAN. This year represents a crucial opportunity to align their strengths and create long-term value for both nations.