M&A experts have revealed that numerous investors from Europe, Japan, the U.K., and the U.S. are eagerly waiting to enter Vietnam. During a recent conference on investment strategies for Vietnam, experts from Global M&A Partners (GMAP) highlighted that while Vietnam has attracted investments from various Asian countries like Japan, Korea, Singapore, Thailand, and China in recent years, it has not seen as much interest from Europe and America.
However, Ivan Alver, co-founder of GMAP and partner & president of Norwegian firm Saga Corporate Finance AS, mentioned that European and American investors are attracted to Vietnam due to its political stability, increasing consumer spending, and competitive wages. The Ministry of Planning and Investment reported that FDI in the first 10 months of 2023 reached $25.7 billion, marking a 14.7% year-on-year increase. This year, notable M&A transactions involving Japanese and American investors have taken place, such as Sumitomo Mitsui Banking Corporation’s acquisition of a 15% stake in VPBank (worth $1.5 billion) and KKR Global Impact’s $120 million investment in EQuest.
Frédéric de Boer, co-president of GMAP and partner at Swiss M&A firm ZETRA AG, shared that two of his clients, both engaged in infrastructure construction with operations in China, are actively seeking investment opportunities in Vietnam. To attract more FDI, especially through M&A, Alver suggested that regulators should amend policies to facilitate easier subsequent divestment. Alver emphasized the importance of providing a simplified and improved divestment process to attract investors, as investors consider the ease of withdrawing their investments. While company registration and acquisition processes are already convenient in Vietnam, streamlining the divestment process would be beneficial. On average, M&A transactions take approximately nine months to complete.
