Positive projections for M&A interest from Thailand

Could you share the trend of Thai investors continuing to invest in Vietnam through mergers and acquisitions (M&As) and joint ventures in 2025?

Leif D. Schneider, country manager for Vietnam at international law firm Luther

This year marked a turning point in the Thai investment strategy for Vietnam. Thai investors are not just reinforcing their position but actively deepening their market presence. This shift is no coincidence: it reflects deliberate, long-term planning aligned with Vietnam’s economic momentum.

Recent figures are compelling. In the first nine months of 2025 alone, Thai investment into Vietnam exceeded $900 million in new projects, representing a multiple of the previous year’s inflows. The increase in both deal volume and transaction size shows that Thai capital is no longer testing the waters – it is committing decisively to Vietnam’s growth.

Efforts by both countries to raise bilateral trade turnover to $25 billion in 2026 further reinforce their strategic alignment and regional supply chain strength.

Why do Thai investors opt for M&As and joint ventures to secure a stronger footprint in the Vietnamese market?

The drivers of this trend extend beyond immediate economic gains. They are structural. Vietnam presents a rapidly expanding consumer market, strong GDP trajectory, improved infrastructure and a stable investment environment.

For Thai strategic investors – from listed conglomerates to specialised mid-caps – M&A and joint ventures offer the fastest, lowest-risk route to scalable market access. By acquiring established operators or forming partnerships, investors secure distribution networks, licences, supplier relationships, local brand recognition and proven market insight. This approach accelerates learning on regulatory frameworks and cultural dynamics.

These strategies are clearly reflected in the multi-year expansion programmes of leading Thai retailers and consumer brands entering Vietnam.

Deal structures are increasingly sophisticated, following commercially sound and legally compliant patterns. When continuity is critical – such as with retail permits, banking licences or energy power purchase agreements – share acquisitions or management joint ventures are preferred to maintain customer relationships and existing approvals.

Where legacy liabilities pose risk, investors lean towards asset deals reinforced by indemnities and transitional support. In regulated sectors like finance and strategic industries, flexible models are taking hold, including minority stakes paired with future options or multi-tier joint venture structures.

Beyond structure, execution discipline is essential. After a year of major administrative reforms and legal restructuring in Vietnam, robust legal, tax and compliance due diligence remains a decisive success factor. Early mapping of licences, confirmation of ownership caps, proactive authority engagement and clear integration governance are key in navigating land-use terms, foreign investment reporting rules, and accounting practices.

Thai companies are famous for deals in retail, consumer goods, food and beverages, and packaging. What are the emerging industries to witness the surge in Thai M&As in Vietnam?

Historically, Thai investment has focused on these areas, in which Thai firms bring strong regional capabilities and deliver high local value. In 2025, diversification has been accelerating. Renewable energy and transition projects are attracting Thai capital as Vietnam drives forward its national energy objectives and its 2050 carbon neutrality roadmap.

Investment in industrial real estate and logistics is growing alongside supply chain reorganisation, with interest also rising in battery and electric vehicle component manufacturing. Digital transformation is opening doors in fintech, driven by liberalisation of payment systems and cloud services. Banking and specialised finance hold strategic potential, albeit with careful regulatory navigation.

Vietnam and Thailand share similarities but offer distinct strengths. This makes them highly complementary. Vietnam provides scale and growth potential, while Thailand contributes expertise and regional operational maturity. Thai manufacturing and packaging efficiency combined with Vietnamese logistics reduces costs. Thai retail know-how paired with Vietnamese consumer insight accelerates market penetration.

Thai experience in renewable energy implementation aligns with Vietnam’s transition goals. The presence of major Thai conglomerates across construction materials, food, retail and industrial zones creates portfolio-level synergy and cross-sector collaboration opportunities.

What is the outlook of M&A activity involving Thai companies in the Vietnamese market?

The outlook remains positive. Rising capital inflows, growing demand for strategic assets, and an improving capital market environment continue to support investor confidence. The most successful outcomes will favour investors combining capital strength with partnership-driven strategies and a clear understanding of local governance and regulatory frameworks.

As Vietnam continues to enhance market access and regulatory transparency, investment from Thailand will evolve from isolated transactions to deeper regional integration. This will generate jobs, transfer technology, and build supply chain resilience, further advancing ASEAN cooperation.

Vietnam and Thailand are not merely neighbouring economies; they are emerging as dual growth engines of ASEAN. This year has presented a rare moment to align their strengths and generate long-term value for both sides.