### The Shift in Vietnam’s M&A Landscape: Insights from 2025
In the first ten months of 2025, Vietnam’s mergers and acquisitions (M&A) market demonstrated a significant shift, with total disclosed deal values reaching an impressive $2.3 billion. However, this growth was accompanied by a notable decline in overall deal volume, which eased to 218 transactions. This trend marks a continuation of a slow, steady decline that has been observed since 2021, reflecting a more cautious approach from investors. Factors such as stricter due diligence, disciplined valuations, and a focus on sectors under margin pressure or with lower demand have shaped this landscape.
### Key Transactions Driving Market Value
The substantial deal value this year can be attributed to several major transactions that captured market attention. Among these, Birch’s acquisition of Eastern Real Estate for $365 million stands out, alongside Hyosung’s $277 million restructuring effort. Other notable deals include AEON’s $162 million buyout of Post and Telecommunication Finance Co., Ltd., and Ares Management’s $50 million acquisition of Medlatec Group. Together, these transactions account for nearly $1 billion, underscoring the ongoing appetite for high-quality, asset-backed platforms, particularly from foreign and regional investors.
### Changing Average Deal Sizes and Distribution
Following an unusually high average deal size of $50.7 million in 2024, the average in 2025 moderated to $29.4 million during January to October. This alteration indicates a return to more typical deal distributions, with an increased participation from mid-market activities. Furthermore, the distribution of deal activity across major sectors has become more balanced, showing promise in areas such as real estate, healthcare, and industrial materials.
### Sector Performance and Investor Appetite
This year, real estate gained traction due to improved liquidity, while healthcare noted an uptick in investments due to structural undercapacity and increased demand for private healthcare services. On the other hand, the materials and industrial sectors benefited from the ongoing shifts in global supply chains. However, consumer sectors remained subdued owing to stiff competition and tighter tax enforcement.
Vietnamese investors played a critical role, contributing over 30% of the total disclosed deal value, with Singaporean investors closely following at around 27%. The presence of Japanese, US, and South Korean investors, contributing 9%, 7%, and 5% respectively, indicates a narrowing gap between domestic and foreign capital involvement in the M&A market.
### The Rise of Preferred Sectors
As the M&A landscape evolves, certain sectors have gained memorably high traction. Real estate accounted for 27% of total deal value, while materials and healthcare followed with 20% and 10%, respectively. This trend points to a clear preference among investors for asset-backed businesses, critical upstream industries, and high-growth service platforms. Notable activity in the materials sector reflects a year of sizable transactions in packaging, chemicals, and other manufacturing inputs, aligned with increased demand for consolidation in the supply chain.
### Future Opportunities and Expected Reforms
Looking ahead, the anticipated reforms related to the Land Law and investment procedures are expected to catalyze additional real estate transaction opportunities and accelerate project restructuring processes. Interest in the healthcare sector, especially in tech-enabled services and diagnostics, remains robust due to rising demand from the growing middle class and the pressing need for scalable healthcare solutions.
Moreover, Vietnam’s commitments under renewable energy targets will likely encourage ongoing deal-making activities in energy and utilities, all while the materials sector is projected to advance further due to global supply chain shifts.
### Continuing Investor Interest Amid Challenges
Despite subdued consumer sector activity in 2025, the underlying demand fundamentals remain intact. Investor interest in healthcare, retail platforms, and tech-enabled services may resurface as macroeconomic stability improves. Vietnam’s M&A landscape is gradually regaining its balance after two volatile years, shaped by a rise in selectivity and more transparent regulatory conditions alongside a return of larger, high-conviction transactions.
### Looking Forward to 2026
The outlook for 2026 is one of disciplined optimism fueled by ongoing infrastructure developments, energy transitions, and essential services upgrades. Enhanced land regulations and DPPA implementations are set to unlock additional deal opportunities across various mission-critical sectors.