This year, significant mergers and acquisitions have been primarily fueled by foreign investments.
Hai Linh Company, an energy firm, reported last week that AG&P LNG, a subsidiary of U.S. investment firm Nebula Energy, secured a 49% stake in the Cai Mep LNG Terminal located in Ba Ria-Vung Tau Province.
The terminal, valued at US$500 million, is slated to commence operations in the third quarter of this year.
In late February, SCB – Siam Commercial Bank, Thailand’s fourth-largest bank by assets, completed the acquisition of consumer finance company Home Credit Vietnam for $865 million.
Much like the trend observed in 2023, this year’s M&A landscape remains dominated by foreign investors, evident from the top five deals involving overseas entities.
According to the Ministry of Planning and Investment, foreign investors executed over 3,450 deals worth $8.5 billion last year, marking a 66% surge in value compared to 2022.
As of October 2023, audit firm KPMG Vietnam reported Japanese investors leading the M&A market with transactions amounting to $1.6 billion.
Overseas capital continues to flow into Vietnam as foreign investors recognize its long-term potential, while domestic businesses exhibit a preference for international funding over local sources.
Vietnam’s strategic position in the global supply chain and its large population are key factors enticing foreign investment.