Crafting successful M&A deals: strategies for long-term growth and resilience

Crafting successful M&A deals: Strategies for long-term growth and resilience

Binh Le Vandekerckove, founder and CEO of ASART Deal Advisory

Binh Le Vandekerckove, founder and of ASART Deal Advisory, highlighted a significant shift in investment strategies among investors in Vietnam.

"In the past, investors focused on specific industries such as healthcare, education, retail, agriculture, and logistics," she said. ” However, recent years have seen a move towards thematic investment areas, including environmental, social, and governance (ESG), AI, and sustainable agriculture.”

Healthcare continues to dominate as a key sector for M&A. In 2022, ASART advised on one of Vietnam's largest healthcare transactions - CVC Capital’s $116 million acquisition of Phuong Chau International Hospital. This was followed by a sharp rise in healthcare-related investments in 2023, with more than 10 deals collectively worth billions of dollars.

Education remains attractive to investors, but structural challenges persist.

"Vietnam still lacks a sufficient number of large-scale, high-potential target companies in the education sector," Binh said.

Looking ahead to 2025, when Vietnam’s M&A market is predicted to experience significant growth, Binh underscored the role of advisory firms in ensuring deal success.

"Advisors act as the bridge between buyers and sellers, guiding them towards strategic alignment and helping both sides achieve their objectives," she said.

She pointed out that deals exceeding $10 million, particularly those over $30 million, increasingly require professional advisory support to manage risks and align goals.

Pham Minh Tuan, vice chairman of Bamboo Capital Group (BCG)

Pham Minh Tuan, vice chairman of Bamboo Capital Group (BCG), outlined the company’s strategy centred on M&A, particularly in renewable energy.

"Foreign investors often approach Vietnam with caution due to limited understanding of local businesses and culture. However, renewable energy projects have become a reassuring entry point," he said.

BCG, currently the third-largest player in Vietnam’s renewable energy sector, operates projects with a total capacity of 700 MW. Recent initiatives include a waste treatment project in Ho Chi Minh City and an investment of around $800 million in renewable energy projects. BCG aims to expand its renewable energy portfolio further by 2027 and is optimistic about government policies encouraging foreign investment.

"Supportive regulatory frameworks will be critical in attracting international capital and strengthening Vietnam’s position in renewable energy," Tuan said.

Nguyen Tran Thuc Anh, investment director of Covestcons LLC (a subsidiary of Coteccons Construction JSC)

Nguyen Tran Thuc Anh, Investment director of Coteccons, said the company’s strategic priorities during the M&A Vietnam Forum 2024. Coteccons focuses on identifying opportunities that align with its core strengths in construction while enabling diversification into complementary sectors.

“We aim to reduce dependence on one sector by exploring synergies and expanding into areas that complement our expertise,” Thuc Anh said.

“We don’t aim to be a ‘Big Brother’ that imposes changes. Instead, we aim to build on the existing DNA of the businesses we invest in, honouring their culture and history while creating mutual growth.”

Central to Coteccons’ M&A strategy is the alignment of long-term visions with potential partners. This process involves significant time and effort to ensure shared goals, with a focus on sustainable development. Post-acquisition, the company works to enhance operations, refine processes, and strengthen human resources, while also refreshing brand identities and preparing for a new growth trajectory.

“We are focused on building businesses that endure for decades, even centuries, rather than being swayed by temporary market conditions. Our goal is sustainable growth over the long term,” she said, underscoring the company’s meticulous and forward-thinking approach to M&A.

Dang Thi Kim Oanh, chairwoman and CEO of Kim Oanh Group

Dang Thi Kim Oanh, chairwoman and CEO of Kim Oanh Group, shared her experiences working with Japanese real estate partners, highlighting the challenges and rewards of such collaborations.

She described Japanese firms as having unparalleled professionalism, transparency, and discipline, which, while demanding, have significantly elevated her company’s capabilities.

“These companies bring centuries of experience, and their stringent requirements have compelled us to adapt and grow. The learning curve has been steep, but the benefits are immense,” she said

In 2024, Kim Oanh Group began partnerships with four major Japanese conglomerates, a process expected to take two years to finalise. These collaborations focus on projects with prime locations and clear legal frameworks, adhering to Japanese investors’ preference for staged payments tied to regulatory milestones.

“We have had to adapt to their detailed contracts and strict timelines, but we are now approaching the final stages of these deals,” Oanh said.

Kim Oanh Group is also advancing a significant social housing initiative, aiming to deliver 40,000 units by 2028 across 26 projects, at a total investment of around $1.24 billion. The initiative, developed in partnership with Surbana Jurong, aspires to provide “Singapore-standard” homes for Vietnamese families.

Luu Thi Thanh Mau, vice president of the Vietnam Young Entrepreneurs Association and CEO of Phuc Khang Corporation

Luu Thi Thanh Mau, vice president of the Vietnam Young Entrepreneurs Association and CEO of Phuc Khang Corporation, highlighted the importance of building long-term, sustainable partnerships with foreign investors.

She reflected on her company’s collaboration with Japan’s Mitsubishi Corporation, which resulted in the development of the Diamond Lotus project - a green housing initiative with 800 units meeting international sustainability standards.

“This partnership was transformative. It was not only about creating a project but also about aligning our values and approach to sustainable development,” she said.

Mau spoke of the challenges of working with Japanese investors, particularly in meeting their rigorous standards. She noted that adapting to their expectations required her company to improve its internal processes and enhance its professionalism.

“Our collaboration with Mitsubishi pushed us to grow, and we are now extending these partnerships to other Japanese firms, such as Aeon Mall, to further integrate sustainability into our projects,” she added.

Mau also stressed the importance of preparation and adaptability when working with foreign investors. She recounted the story of how Phuc Khang had to respond to an urgent request from Mitsubishi during the Vietnamese New Year holiday, highlighting the need for flexibility in such partnerships.

Angus Liew, chairman of Gamuda Land Vietnam

Angus Liew, chairman of Gamuda Land Vietnam, reaffirmed the Malaysian company’s deep commitment to Vietnam, a key market in its global portfolio. With a market capitalisation of $6 billion, Gamuda Land has pledged over $1 billion in investments in Vietnam over the next five years, focusing on infrastructure and real estate development.

“Challenges are inevitable in any market, but they also present opportunities. Vietnam remains one of our top priorities due to its immense growth potential,” Liew stated. The company plans to leverage its experience to attract additional investors, creating a more vibrant and sustainable real estate market in Vietnam.

Reflecting on Gamuda Land’s M&A activities, which include 12 completed transactions, Liew shared key lessons. He highlighted the importance of anticipating uncertainties and preparing contingency plans to address unexpected challenges. Additionally, he emphasised the need for strong advisory teams to navigate regulatory complexities and avoid costly missteps.

“M&A is never straightforward, and achieving success requires persistence, adaptability, and mutual support between all parties involved,” he said.

Pham Duy Khuong, managing partner at ASL Law

Pham Duy Khuong, managing partner at ASL Law, emphasised that understanding investor preferences was key to successful M&A transactions in Vietnam.

Khuong observed that Chinese investors often focus on industrial real estate, leveraging Vietnam’s role as a hub for relocating manufacturers. In contrast, Japanese investors gravitate towards IT companies that can integrate into global supply chains. Meanwhile, e-commerce has become a significant trend, with cross-border platforms entering Vietnam after securing logistics assets such as warehouses and cold storage facilities through M&A to solidify their operations.

The sectors most sought after by investors include industrial real estate, IT, logistics, and port infrastructure. Khuong noted that foreign investors have shown strong interest in acquiring Vietnamese ports, but these deals often require extensive legal due diligence, which can prolong the transaction timeline.

“Japanese companies will not engage unless all legal matters are thoroughly resolved,” he explained. “This rigorous approach often results in significant due diligence costs, but once a deal is closed, the benefits include long-term credibility and stable partnerships.”

M&A prospects bright in many sectors Dealmaking activities are arising in emerging fields ranging from semiconductors and data centres to liquefied natural gas, indicating ample room for buyers.

Wide M&A prospects for ASEAN players Supported by an influx of capital from developed economies, Southeast Asia now stands as a strategic hub for international investors exploring growth opportunities. Despite this appeal, the market presents specific challenges that necessitate careful navigation. Nonetheless, the momentum in the Southeast Asian merger and acquisition (M&A) sector reflects a resilient and optimistic outlook, signalling strong potential for sustained investment returns.

The 16th Vietnam M&A Forum: A Blossoming Market After a period of stagnation, Vietnam’s M&A market is now on a strong recovery trajectory, with major deals starting to re-emerge.

The rise of industrial real estate M&A Vietnam’s industrial real estate mergers and acquisitions market is experiencing unprecedented growth, fuelled by improving infrastructure, revised laws, and increasing demand from foreign investors.

M&A market set to boom again in 2025 The M&A market is expected to become more dynamic in 2025 with the return of investors from Japan and South Korea across various sectors, driven by positive institutional changes and recent efforts toward dual transformation.