Vietnam M&A Market in 2025: A Rising Tide

Vietnam’s M&A (mergers and acquisitions) market in 2025 stands out as a testament to resilient growth across diverse sectors, such as retail, energy, real estate, finance, and technology. Even amid global uncertainties, the domestic landscape has shown remarkable buoyancy, driven by strategic investments in energy acquisitions, lavish casino resorts, and a surge of foreign tech investments.

Market Momentum: Analyzing Current Trends

The first half of 2025 has marked a significant rebound in Vietnam’s deal-making environment. Data from Grant Thornton highlights a surge in activity, with July recording 34 completed deals worth nearly US$786 million, averaging US$23.1 million per deal.

Several factors contribute to this revival. Key legal reforms, such as the revisited Land Law and the newly instituted Law on Digital Technology Industry, have enhanced transparency and raised investor confidence, particularly within the real estate segment.

In stark contrast, 2024 concluded with a subdued performance, registering 450 transactions valued at US$6.93 billion—a notable decline in both volume and value. The shift towards smaller, localized investments is evident, with a decrease in average deal size from US$52.3 million in 2023 to US$23.5 million in early 2025.

Sectoral Highlights: Key Industries in Focus

Real Estate: A Robust Player

Dominating the M&A space, real estate transactions climbed from 36% of deal value in 2024 to 44% in the first quarter of 2025. Remarkable transactions include Vinaconex Group’s sale of a 70% stake in Vinaconex ITC and UOA Vietnam’s acquisition of Ruby Strip Investment Company for substantial figures, underscoring renewed confidence in the sector.

Technology: Accelerating Growth

The technology sector is emerging as a vital player, accounting for 5% of deal value in Q1 2025—up from 2% in 2024. This shift attracts domestic and foreign investors, with commitments from companies like Rounds, pledging US$20 million to support non-gaming apps. Furthermore, SpaceX is investing around US$1.5 billion to set up business in Vietnam, aiming to extend broadband services through ground station development.

Prominent deals have included GS Microelectronics’ acquisition of Sinble Technology Vietnam and AI Hay’s US$10 million Series A funding raise for localized AI tools.

Healthcare: Expanding Opportunities

An increase in healthcare-related M&A activity mirrors the growing demand for health services. Noteworthy transactions include Dale Investment Holdings acquiring a significant stake in Tam Tri Medical for approximately US$31 million. This rise in healthcare investment reflects Vietnam’s expanding middle class and the increasing appeal of private hospital chains and pharmaceuticals.

Energy: Consolidation and Sustainability

The energy sector has experienced notable consolidations with EnQuest’s purchase of Harbour Energy’s Vietnam business for over US$85 million. Sembcorp’s investment in a hydropower plant, part of a broader renewable strategy, emphasizes a shift towards sustainability in energy investments.

Education and Infrastructure: Broader Horizons

M&A activity in infrastructure and education supplements the robust real estate sector. The IFC‘s US$19.2 million investment in VETC to broaden electronic toll networks indicates growing attention to infrastructure. Additionally, foreign investments in projects like Vietnam’s North-South high-speed railway signal significant plays on the infrastructure front.

Changing Investor Dynamics

An observable trend in the M&A landscape is the transition of domestic investors taking a more prominent role, with their share of total deal value rising from 16% in 2023 to 29% in 2024. This increasing depth in Vietnam’s capital markets bodes well for the future, showcasing confidence among local players.

External Forces at Play

Despite the positive atmosphere, external factors are causing ripples within the investor community. The ongoing scrutiny of foreign investments, illustrated by the Commonwealth Bank of Australia’s exit from Vietnam International Bank, suggests a reassessment of commitments in light of global economic risks.

Navigating Risks Amid Growth

While optimism surrounds Vietnam’s M&A prospects in 2025, caution lingers due to challenges like the fragility of deal values, as seen in declining average deal sizes. The complexities of U.S. tariffs, currency volatility, and ongoing administrative reforms may also pose hurdles to seamless investment activity.

Insights into the Future

As Vietnam steers its path forward, the M&A market showcases a blend of opportunities alongside potential uncertainties. Key areas attracting investor attention will likely encompass real estate, technology, healthcare, logistics, and energy sectors. Balancing these prospects with the realities of trade policy uncertainty and market fluctuations will define the trajectory of Vietnam’s M&A landscape in the years to come.