Japanese companies continue their M&A buying spree in Vietnam

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The agreements, signed in early October, encompass AkzoNobel's Decorative Paints business in seven countries – Vietnam, Indonesia, Malaysia, Thailand, Singapore, Papua New Guinea, and Australia – based on a total enterprise value of approximately $1.35 billion.

Nippon Paint believes that AkzoNobel’s decorative paints businesses in Southeast Asia, which are the subject of these share acquisitions and business transfers, have a well-established foundation in Vietnam, Indonesia, Malaysia, and Singapore, and other geographies. The company recognises these as highly promising businesses, supported by robust distribution networks, brand recognition, and manufacturing and supply systems.

On September 30, Japan's Kokuyo announced plans to increase its investment in a special purpose company established to acquire shares in Thien Long An Thinh Investment Corporation and Thien Long Group Corporation, with the aim of making Thien Long Group a subsidiary.

With the additional investment, the subsidiary's capital will exceed 10 per cent of Kokuyo's capital, making it a specified subsidiary of the company.

As reported by Reuters on September 25, Sumitomo Mitsui Banking ​Corp (SMBC) is in advanced talks to increase its stake in VPBank, four people familiar with the ‌negotiations said.

SMBC, the banking arm of Sumitomo Mitsui Financial Group, is discussing raising its holding to approximately 20 per cent from 15 per cent. The Japanese lender acquired the original stake in 2023 in a deal worth $1.5 billion.

September also saw Sojitz Corporation complete the acquisition of more than 14.9 million shares in Taseco Air Services JSC for approximately VND1.05 billion (equivalent to around $40.5 million). Following completion, Sojitz holds 27.64 per cent of the company’s charter capital and becomes its second-largest shareholder, after the controlling shareholder, Taseco Group, which holds 51 per cent.

Taseco Airs currently provides a range of services, including retail, duty-free shops, food and beverage services, business-class lounges, advertising, logistics, and airline catering at major airports including Noi Bai, Tan Son Nhat, Danang, and Phu Quoc. Meanwhile, Sojitz is a diversified Japanese trading corporation that has operated in Vietnam since 1986, with a business ecosystem spanning energy and industry through to retail chains and consumer goods.

According to RECOF’s database, the number of merger and acquisition (M&A) transactions involving Japanese companies reached 3,883 in the first nine months of the year, representing a 5 per cent increase from the same period of 2025, while the outbound M&A from Japan showed a decline of 2.5 per cent to 467 transactions for the same period, though it remained at a relatively high level.

Despite the turbulent global geopolitical environment and unstable interest rate and foreign exchange markets, Japanese companies’ outbound M&A activities stayed firm.

As for the destination of outbound transactions by Japanese companies during the period, the US remained the most popular target country, with 161 transactions in the first three quarters of the year. Within Southeast Asia, Singapore led with 28 transactions, followed by Malaysia (14), Thailand (13), and Vietnam (9).

No transactions involving Vietnam were announced in the third quarter, so the country's total remained at nine from the start of the year, while Malaysia and Thailand advanced, with sectors such as energy, IT, and food and beverage proving active.

RECOF noted that the interest of Japanese companies to invest in Vietnam remains strong. The M&A dealmaking may have been partly affected for the short term by the government’s initiative for a transparent and open capital market, which requires some Vietnamese companies to prepare for the changes before promoting M&A discussions.

On the other hand, recent deregulation in the retail sector, with the exemption of ENT rules for CPTTP members including Japan, will create substantial demand for additional investment in the retail and related sectors in Vietnam.

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