Domestic groups seize upon deals

Last week, BAF Vietnam Agriculture passed a resolution to scoop up 99.99 per cent of pig farming group Tuyet Hoa Dak Lak, which has a charter capital of $1.96 million.

Domestic groups seize upon deals, Source: freepik.com

BAF has been on a buying spree of livestock companies nationwide to expand its market share. In November, it acquired the same stake in Thanh Xuan Clean Agriculture Development, and the previous month snapped up 95 per cent of Khuyen Nam Tien High-Tech Livestock Company for $1.86 million.

Moreover, BAF has also acquired 49 per cent of shares in five other livestock companies in the central province of Quang Tri. The transactions pave the way for BAF to facilitate its expansion in 2025.

BAF’s CFO Ngo Cao Cuong said, “The company intends to acquire full ownership of all these companies. Such companies have land reserves and are completing legal formalities, and BAF plans to acquire the remaining shares after these processes are finalised.”

In mid-December, OnPoint, a Vietnam-based e-commerce enabler, acquired a 51 per cent stake in Crea, an ecommerce service provider in Thailand. Although the deal value was not disclosed, it aims to enhance OnPoint’s capabilities and presence in Southeast Asia’s growing digital commerce sector. The combined resources of OnPoint and Crea now support over 250 brands with more than 600 in-house employees and over 1,000 outsourced personnel.

Tran Vu Quang, founder and CEO of OnPoint, said, “This partnership with CREA represents a pivotal milestone in our mission to drive digital commerce across Southeast Asia. CREA has accomplished extraordinary achievements under exceptional leadership. By combining our strengths, we are uniquely positioned to help brands succeed in the dynamic and fast-evolving digital economy of the region.”

In the next five years, OnPoint and CREA have a joint vision to become Southeast Asia’s leading and most innovative e-commerce solutions providers. With bold ambitions to serve over 600 million consumers and facilitate social, and cross-border commerce, this collaboration is a testament to their unwavering commitment to shaping the future of commerce.

Other notable deals involving domestic firms in the second half of 2024 included Nutifood’s 51 per cent stake addition in KIDO Foods in September, KIDO Group’s raising of ownership in Hung Vuong JSC in August, and Tasco Auto’s acquisition of Sweden Auto in July.

According to a KPMG Vietnam report published in November, domestic investors took a major role in Vietnamese mergers and acquisitions (M&As) in the first nine months of 2024 with a deal value of $1.7 billion, accounting for just over half of the total disclosed deal values. This is a result of business restructuring among local players and indicates a strategic focus on business consolidation and recalibration within the domestic market. Furthermore, such a trend shows that foreign investors are likely exercising a more careful approach to dealmaking in Vietnam, the report said.

Le Minh Phieu, founder of LMP Lawyers, said domestic firms in Vietnam were playing an increasingly prominent role in the country’s M&A market.

“Companies like Vingroup, Masan Group, and KIDO are strengthening their positions in sectors such as retail, food, and automotives. These firms are expanding both domestically and internationally, with VinFast targeting global markets and Masan diversifying into pharmaceuticals and tech,” Phieu said. “With stronger financial capabilities, driven by rising consumer spending and better access to capital, domestic firms are now more competitive in executing large-scale deals, often outpacing foreign investors. They leverage local market knowledge and operational expertise to drive synergies post-acquisition.”

Regarding horizontal consolidation, firms like KIDO and Masan acquire competitors to increase market share, especially in food and beverages. In terms of vertical integration, companies like Masan are acquiring businesses along their supply chains to boost efficiency, Phieu added.

“With continued economic growth and government support, M&As are likely to remain a central strategy for Vietnamese firms aiming to strengthen their market position and pursue new growth opportunities in 2025,” Phieu explained. “The growing role of domestic firms reflects Vietnam’s economic rise and the increasing sophistication of its corporate sector, positioning them as key players in the market. However, challenges related to regulatory navigation, financing, and integration will need to be carefully managed for sustained success.”

According to the Vietnam M&A Market Outlook 2025 report released by FiinGroup in November, compared to the previous year, lending rates in Vietnam have decreased and held steady at lower levels, which generally encouraged domestic M&A activity.

The key factors shaping Vietnam's M&A market for 2025 Nguyen Cong Ai, senior partner of Deal Advisory at KPMG Vietnam, delivered his keynote speech at the 2024 Vietnam M&A Forum on November 27, highlighting the key factors shaping the outlook for next year.

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