Asian investors control M&A activities in Vietnam

July 21, 2017 | 17:42
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Investors from Asia, specially Thailand, Singapore, Japan, and South Korea, are dominating M&A activities in Vietnam during 2016-2017, according to the researchers of Vietnam M&A Forum 2017.
The experts of Vietnam M&A Forum summed up the largest and most active M&A investors

Notably, Japanese investors have focused on M&A deals in aviation, pharmaceuticals, and petroleum, while enterprises from Singapore are attracted by commercial real estate deals. Thai investors have poured capital in the retail and construction material sectors, aiming to expand operations, while South Korean investors are making deals in the food and financial-banking sectors.

Regarding transaction values, almost all M&A deals in Vietnam are small-scale deals valued under $20 million, making up 64.16 per cent of the total value and 90 per cent of the number of transactions. Deals worth over $500 million make up 17.66 per cent, while deals worth $100-500 million make up 8.72 per cent. 9.47 per cent of the deals were worth $20-100 million.

Singaporean enterprises rank first in the number of deals, with a total of 20 transactions, while Thai enterprises became the largest investors with a total capital sum of $1.2 billion.

Outstanding deals of Thai investors include deals between SCG and Vietnam Construction Materials JSC (VCM), the two subsidiaries of Fraser & Neave Ltd. (F&N) and Vinamilk, among others.

Regarding South Korean enterprises, the deals between CJ and Cau Tre, Deasang and Duc Viet Foods, as well as Shinhan Vietnam’s purchase of retail banking arm from ANZ Vietnam must be mentioned.

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Logistics opportunities spur multinational M&A

By By Tuan Oanh

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