Due to the volatile global economy, the mergers and acquisitions (M&A) market is anticipated to face challenges in 2024, yet several sectors still present significant opportunities, according to experts. During a recent talk show series discussing Vietnam’s M&A market, experts and investors expressed their expectations for some growth despite the uncertain economic outlook.
Binh Le Vandekerckove, CEO and head of M&A for ASART Deal Advisory, highlighted that the market would experience pressure from the macroeconomic situation and the global economic uncertainties in 2024. She emphasized the impact of the US raising interest rates to nearly 5.5%, creating a wait-and-see attitude among investors considering Vietnam. Despite the desire for long-term investments, the current geopolitical instability globally has led to a cautious approach, with many adopting a “do nothing” mindset amid uncertainties.
Khanh Nguyen, a business development director at Gamuda Land, discussed challenges in project approval progress and the development of Gamuda Land’s fund. He hoped that the government would continue to remove obstacles for Vietnamese businesses and investors and address supply shortages in 2024-2025.
Despite the challenges, Vandekerckove sees Vietnam as a bright spot in the region, attracting investors from Japan, South Korea, America, and Europe. She highlighted the stability and extensive relationships with other countries as positive factors drawing investors to Vietnam. The top five industries expected to remain attractive to investors include consumption, finance, real estate, logistics, and medical services.
Additionally, 2024 is seen as a good opportunity for individual investors to invest in real estate, with favorable conditions offered by developers. The banking and finance industry is also regarded as a bright spot, with a trend of financial corporations entering Vietnam for short-term or long-term investments in real estate, anticipating a high rate of return.
Foreign investment data shows positive trends, with registered foreign capital reaching $25.76 billion in the first 10 months of 2023, a year-on-year increase of 14.7%. Disbursed capital posted $18 billion, marking a 2.4% growth over the corresponding period last year. Capital through capital contribution and share purchases exceeded $5.13 billion, with a year-on-year surge of 35.4%.
