Discipline shapes M&A environment

Although transaction numbers fell by 20 per cent in the first half of the year, the total value increased, Photo: Shutterstock

Last week, Saint-Gobain announced that the company completed the acquisition of Phu My Innovative Materials, one of Vietnam’s largest and most advanced plasterboard facilities, generating revenues of around $22.8 million in 2025 with a strong growth potential.

Supported by a network of 3,200 retailers and 15,000 installers, Saint-Gobain holds leading positions in Vietnam in gypsum, light steel framing, cement boards, and construction chemicals. With 12 plants in the country, it offers integrated solutions for residential, non-residential and infrastructure markets, with revenues of €200 million ($229 million) in 2025, 2.5 times the level 10 years ago.

The acquisition strengthens Saint-Gobain’s presence in Vietnam and enhances its ability to serve the growing demand for lightweight and efficient building solutions.

One week previously, Japan’s Sharp Energy Solutions Corporation also completed the acquisition of all shares held by NSN Construction & Engineering in Sharp NSN Energy Solution, a joint venture established in Vietnam. The Vietnamese company has been engaged in solar engineering, procurement, and construction as well as operations and maintenance business.

Following the acquisition, Sharp Energy will venture into new business areas, including rooftop solar power systems for factories and commercial facilities, as well as solar power plants combined with battery energy storage systems.

In June, South Korea’s Interflex also spent $18 million to acquire shares in its Vietnamese subsidiary Korea Circuit Vina. The Vietnamese company is operating as a PCB manufacturing base in the Dong Soc industrial cluster of Vinh Phuc province. The acquisition amount represents 8.61 per cent of the company’s equity capital.

According to a report by Grant Thornton, in the first six months of 2026, Vietnam’s merger and acquisition (M&A) market recorded 126 announced transactions, with disclosed or estimable deal value totalling approximately $2.43 billion. Among these, 89 transactions had disclosed or estimable values, implying an average deal value of approximately $27 million.

Compared to the same period last year, although transaction numbers fell by around 20 per cent, the total disclosed or estimable deal value increased by 14 per cent to $2.5 billion. The average deal value in the first six months of 2026 reached approximately $28 million per transaction.

Douglas Jackson, managing director of Indissoluble Partners, said, “Fewer deals got done in the first half, but the deals that closed were larger. This is not a broad recovery. It is a quality filter. Buyers are still interested in Vietnam, but they are more careful on earnings, governance, legal approvals, and valuation.”

Jackson further noted that discipline is shaping Vietnam’s M&A market. “Buyers are pushing harder on valuation, regulatory risk, tax exposure, land title, asset quality, and management credibility. Sellers who still expect 2021-level valuations will struggle,” he added.

According to findings by Indissoluble Partners, dealmaking activity is concentrating around larger and cleaner opportunities, especially in real estate, financial services, consumer, tourism, logistics, infrastructure, technology, and industrials. There are also more capital market-linked transactions, including minority stakes, pre-listing investments, block trades and strategic share purchases.

As per a report released by PwC on July 29, investors continue to prioritise business quality, strategic fit and long-term value creation over transaction size alone. Recent investments in companies such as Imexpharm, Bibica, and Thien Long highlight the attractiveness of established Vietnamese platforms and brands.

Beyond pharmaceuticals and consumer sectors, investor interest is expanding into infrastructure, logistics, the energy transition, and high-tech manufacturing. Investments in companies such as Pharmacity and Dat Bike highlight growing interest in opportunities linked to healthcare and digitalisation.

Tiong Hooi Ong, partner of PwC Vietnam, said, “The next phase of Vietnam’s M&A market may see investors becoming more selective, focusing on assets aligned with long-term themes such as consumer demand, digital transformation, infrastructure and sustainability. This is a sign of deepening investor confidence in Vietnam, not just as a growth market, but as a place where multiple investment models and value creation strategies can succeed.”