Vietnam’s Resilience in the Global M&A Landscape
Despite a pronounced global downturn in merger and acquisition (M&A) activity, Vietnam has emerged as a beacon of stability and attractiveness for investors. With a reported 220 M&A transactions throughout the year until November, totaling approximately $2.3 billion, Vietnam’s M&A sector exhibits noteworthy resilience in an otherwise struggling global marketplace.
Current M&A Trends in Vietnam
According to KPMG Vietnam, the average deal size has retracted to $29.4 million from a high of $50.7 million in 2024. This decrease indicates that investors are now opting for a more cautious approach, prioritizing strategic and sustainable assets over sheer scale. Key sectors driving this activity include real estate (27%), materials—driven by supply chain relocation trends—and healthcare, spurred by the growing demands of an expanding middle class.
Dinh The Anh, head of Corporate Finance at KPMG, noted that these sectors collectively account for over half of the total M&A value, highlighting a marked shift towards assets with intrinsic value and sustainable growth potential. As investor sentiment turns more prudent, a clear trend has emerged: focus on strategic, high-value investments rather than opportunistic pursuits.
Major Transactions and Strategic Investments
Significant transactions contributing to Vietnam’s M&A landscape include Birch’s acquisition of Phuong Dong Real Estate for $365 million, AEON’s acquisition of the Post and Telecommunications Finance Company for $162 million, and a $277 million restructuring deal by Hyosung. These high-value deals underscore the strategic investments bolstering Vietnam’s market.
At the recent Vietnam M&A Forum in Ho Chi Minh City, Douglas Jackson of Alvarez & Marsal emphasized the upcoming provisional upgrade of Vietnam’s stock market, slated for next year. This upgrade is expected to attract billions of dollars in portfolio investments, further enhancing exit options for investors.
A Shift Towards Sustainable Sectors
The Vietnamese government is actively promoting investment in high-tech, green, and digital sectors. Initiatives like a comprehensive semiconductor strategy and ambitious digital economy targets point to a proactive approach in revitalizing investment interest. Key sectors such as manufacturing, energy, and financial services should remain central to Vietnam’s M&A narrative, while healthcare and semiconductors are becoming increasingly prominent.
Foreign Direct Investment (FDI) Dynamics
From January to November 2025, Vietnam attracted nearly $33.7 billion in foreign direct investment—a 7.4% year-on-year increase, according to the Foreign Investment Agency. Although newly registered capital has seen a decline, this figure reflects the broader trend of increased capital contributions and adjustments. Seck Yee Chung from Baker McKenzie recognized Vietnam’s resilience amidst evolving geopolitical conditions and tightening financial scenarios.
Factors Enhancing Investor Confidence
Vietnam’s appeal to foreign investors is further boosted by government measures aimed at enhancing the business environment. These include regulatory reforms aligned with global sustainability objectives, which have bolstered investor confidence. As trade routes recalibrate across Asia, Vietnam’s political stability, competitive costs, and growing network of trade agreements solidify its position as a prime destination for global M&A activity.
Chung noted that enhancing Vietnam’s attractiveness as a strategic hub hinges on strengthening progress in key sectors like real estate, manufacturing, technology, and healthcare. The emphasis should be on streamlining administrative procedures, improving transparency, and investing in human capital to sustain talent attraction.
Renewable Energy and Infrastructure Needs
The necessity for renewable energy has gained urgency in Vietnam. Hugo Virag from Astris Finance highlighted that the substantial capital required—amounting to billions of dollars for transitioning to renewable sources and strengthening the power grid—is paramount. This is crucial not only for energy independence but also for meeting future demands.
Investments in the water sector are equally essential, with projected needs of $20-30 billion by 2030 to improve clean water access and drainage infrastructure.
Evolving Regulatory Landscape
Legal reforms and modernisation efforts are transforming Vietnam’s M&A environment. Revisions to laws concerning land, housing, and investment have streamlined processes and rekindled stalled projects. Sector-specific policies like the Power Development Plan VIII open new avenues in renewable energy, while adjustments in tax structures enhance the appeal for financial services consolidation.
The decentralisation of licensing procedures to provincial authorities is noteworthy, allowing for expedited approvals, thereby reinforcing Vietnam’s competitive stance.
Navigating the M&A Terrain
Foreign investors are encouraged to adopt a proactive approach, engaging early with regulatory requirements to avoid potential delays. Monitoring sector openings, particularly in healthcare and digital services while steering clear of restrictions, can optimize investment strategies.
Vietnam’s M&A landscape is still navigating challenges stemming from inconsistent law application across localities and uncertain procedural timelines. To strengthen its market, there’s a pressing need for improved regulatory frameworks and buyer-seller transparency.
The Future of Vietnam’s M&A Market
The forecast for Vietnam’s M&A market remains optimistic, with potential for significant growth over the next few years. As the landscape evolves, investors and businesses are positioned to capitalize on both domestic and international opportunities. The upcoming years promise to bring new transactions and viable exit strategies, further enhancing Vietnam’s attractiveness as a dynamic and competitive player in the global M&A arena.