Landscape strong for domestic acquisitions

VinMetal, Vingroup’s newly established metallurgy company, may acquire Pomina in a move to penetrate into Vietnam’s steel industry, as per a report by securities firm HSC.

Accordingly, VinMetal could take advantage of Pomina’s idle capacity to supply construction steel internally for Vinhomes ventures. Through a special financing package announced in mid-November, Vingroup will provide Pomina with working-capital loans at a zero per cent interest rate for up to two years, while also designating Pomina as a preferred supplier across its entire ecosystem.

In October, Dabaco Vietnam approved the acquisition of an additional 2.5 million shares, equivalent to 41.67 per cent, in Thinh Phat Kim Son 1, to increase its charter capital and finance the construction of a high-tech pig farming complex in the northern province of Lao Cai.

The venture has a total investment capital of approximately $21.2 million, and is scheduled for implementation before 2027. Upon completion of the transaction, Dabaco will raise its ownership in Thinh Phat Kim Son 1 to 88.18 per cent of charter capital.

This year has been deemed a strong one for domestic mergers and acquisitions (M&As) in Vietnam, with conglomerates leading strategic transactions across core industries.

Examples include Vingroup’s move to acquire Pomina Steel and its $1.6 billion Vincom Retail divestment, strategic partnerships in real estate (Vinhomes-CapitaLand), and major tech exits (VinBrain to Nvidia, Movian AI to Qualcomm).

Elsewhere, VinEnergo participated in liquefied natural gas power mega-projects, while Masan continues to expand its food and retail ecosystem, and THACO launched major investments across automotive, agriculture, and logistics. In banking, Dong A Bank and GPBank saw compulsory consolidation, streamlining the sector for growth and digital expansion.

Christine Khuat, associate of Freshfields LLP, said domestic companies are adjusting their M&A strategies for restructuring and consolidation. “Vietnam now recognises the private sector as the economy’s central growth engine and targets the creation of 20 national champions by 2030. Large-scale Vietnamese companies are envisioned to join global value chains and pioneer high-value industrial and tech investments, similar to the South Korea model,” Khuat said.

The government encourages private sector consolidation and expansion, providing policy signals, improving market access conditions for Vietnamese investors, and delivering targeted support to leading domestic groups, Khuat added.

“Companies are orienting M&A strategies towards ecosystem building, vertical and horizontal integration, technology-driven growth, and sector leadership. The realisation of this vision will depend on further reforms, especially streamlining onshore and offshore investment processes, to make domestic and cross-border transactions more efficient,” she added.

According to Vietnam Briefing, Vietnam’s M&A landscape in 2025 reflects a recovery in confidence even in the face of global headwinds. Domestic groups are expanding through acquisitions in retail and finance, whereas foreign investors are channelling capital into renewable energy, real estate, and technology.

Another report by Grant Thorton also indicates that Vietnam’s M&A market has witnessed the proactive participation of domestic investors. The significant increase in transaction value from this group highlights the growing confidence and capability of local players in executing large-scale transactions.

Besides local deals, domestic companies have also increased cross-border M&A deals to secure an international footprint, as reflected in FPT’s acquisition of German IT firm David Lamm Consulting. However, the number of examples is still very limited, which is due in part to significant legal, practical, and procedural barriers faced by Vietnamese companies when making significant investments outside of Vietnam.

Eric Douglas Johnson, partner of Freshfields LLP, pointed out that under the current Investment Law, outbound investments above VND800 billion ($30.3 million), or VND400 billion ($15.2 million) for regulated sectors, require prime ministerial approval.

“Major outbound projects, such as Vingroup’s establishment of VinFast France and VinFast Netherlands, as well as Sacombank’s expansion into Laos, all required PM’s decisions, with detailed conditions on financing, compliance, and profits repatriation. Historically, the approval process had been lengthy and cumbersome, creating unpredictability to both timing and outcome,” Johnson said.

Outbound transfers and repatriations that face strict controls and documentation missteps can disrupt capital flow and business operations. Additionally, companies must obtain an outward investment registration certificate before any capital is transferred, with continued reporting and amendment requirements continue for the life of the project increasing compliance burdens and cause loss of investment momentum.

“To fulfil Vietnam’s ambition of cultivating globally competitive champions, reforms should focus on adopting a tiered, transparent approval system,” Johnson added. “The reforms in the new draft Investment Law to increase monetary thresholds for PM approval and loosen outward investment approval requirements for certain projects are a step in the right direction. However, capital controls could be further relaxed to focus more on post-investment reporting, monitoring, and compliance rather than strict restrictions that reduce the flexibility of domestic companies.”