Vietnam’s Mergers and Acquisitions Landscape in 2025

The first panel discussion of the Vietnam Mergers and Acquisitions (M&A) Forum 2025, hosted by VIR in Ho Chi Minh City on December 9, set the stage for a deep dive into Vietnam’s evolving role within the global investment and M&A flows. Experts from various sectors illuminated the country’s recent advancements and prospective future in this dynamic arena.

Legal Reforms and Regulatory Changes

Vo Ha Duyen, chairperson of the Vietnam International Law Firm (VILAF), highlighted the significant legal reforms Vietnam has introduced. These reforms aim to enhance transparency and improve governance, thereby enabling easier access for foreign investors. A particularly notable shift is the issuance of 28 decrees that delegate authority to local authorities for approving business, investment, and construction licensing processes, which were previously under the jurisdiction of central ministries.

Duyen elaborated on amendments to the Law on Investment, which have transferred approval authority for substantial projects from the prime minister to provincial governments. This change signifies a strategic pivot toward empowering local governance and accelerating project approvals, particularly in high-tech and sustainable sectors. The revamped Law also aims to decrease licensing and construction timelines from an average of 9-12 months, showcasing Vietnam’s ambition to attract high-tech capital flows.

Streamlined M&A Processes

Duyen emphasized that these reforms have made M&A approvals faster and more predictable. While some foreign ownership caps remain in specified industries, the overall trend is promising, indicating a more accessible environment for investments. The enhancements in the stock market infrastructure also play a key role in upgrading investor accessibility, with clearer and more favorable M&A deal structures emerging. According to Duyen, 2026 appears poised to be an optimal time for well-prepared companies to embark on crucial strategic transactions.

Investment Climate and Market Quality

Bui Hoang Hai, vice chairman of the State Securities Commission, addressed the comprehensive modernization of Vietnam’s trading infrastructure. These upgrades have bolstered transparency and market quality, positioning Vietnam as one of the most vibrant emerging markets globally. The increased participation of both domestic and foreign investors points to evolving investor confidence in Vietnam’s financial landscape.

Hai underlined the government’s ongoing commitment to reviewing and reforming the legal framework to support market development. He noted that regulatory reforms, such as Decree 155, have streamlined the initial public offering (IPO) process, further removing hurdles for indirect investors.

Recent Trends in M&A Activity

Khanh Vu, managing director and portfolio manager at the VinaCapital Vietnam Opportunity Fund, reported a marked increase in M&A transactions over the past six months. This uptick is attributed to a stabilized legal environment and proactive government policies which have significantly improved the business climate.

Vu pointed out that various regulatory adjustments, including Resolution 68 and revisions to the Land Law, have fortified foreign investor trust. This renewed optimism has been demonstrated by the resurgence of M&A activity across multiple sectors, including retail, healthcare, and infrastructure, and extends beyond traditional technology markets.

Foreign Investment Insights

The confidence of foreign investors in Vietnam’s M&A landscape is echoed by Tamotsu Majima, senior director at RECOF Corporation. Many Japanese companies are incorporating Vietnam as a pivotal element of their broader Southeast Asian investment strategies. Majima highlighted that Vietnam leads the M&A market, accounting for over 30% of total disclosed deal value, estimated at $712 million. This remarkable figure surpasses Singapore, Japan, the US, and South Korea, underscoring Vietnam’s robust attractiveness to global investors.

One recent notable transaction is the acquisition of Thien Long Corporation, a Vietnamese office-supplies leader, by Kokuyo Group for 27.6 billion Yen. Majima noted that Vietnam’s extensive free trade agreements and strategic partnerships with major economies contribute to its appeal for international capital.

Geopolitical Dynamics and Competitive Landscape

Seck Yee Chung, partner at Baker McKenzie, discussed how geopolitical shifts are accelerating the reallocation of supply chains to Asia, particularly Southeast Asia and Vietnam. Despite the competitive landscape within ASEAN, Vietnam’s government has laid out encouraging directions for infrastructure and investment while pushing for innovation in sectors such as artificial intelligence.

Chung drew comparisons between Vietnam’s capital market and those of its regional peers, mentioning efforts by Singapore and Hong Kong to attract international issuers. He emphasized that Vietnam is on a trajectory toward achieving emerging market status, aided by ongoing regulatory reforms.

The Role of Vietnamese Enterprises

From a practical business perspective, Dang Van Thanh, chairman of TTC Group, emphasized the need for Vietnamese enterprises to take proactive measures in governance and opportunity identification. As the M&A landscape evolves, enterprises must be prepared to absorb foreign capital effectively.

Dinh The Anh, head of corporate finance at KPMG Vietnam, further illustrated the necessity for Vietnamese companies to get ready for compliance and strategic alignment. He noted that clear exit strategies remain a gap for many Vietnamese business owners. KPMG aims to facilitate sell-side transactions, positioning itself as a supportive advisor in the evolving market landscape.

The discussion surrounding Vietnam’s M&A growth reflects a vibrant market, driven by regulatory support, investor confidence, and the proactive involvement of local enterprises. As Vietnam continues to enhance its legal framework and market conditions, the potential for lucrative M&A opportunities is becoming increasingly evident.