Vietnam recorded more than $700 million in M&A in May

The report, released on June 8, showed that industrials, technology, and healthcare were the most active sectors, contributing nine deals and accounting for 38 per cent of total transactions during the period.

Nguyen Thi Vinh Ha, senior partner, National Head of Advisory Services, Grant Thornton Vietnam noted that in terms of value, the market was predominantly driven by a $530 million strategic restructuring transaction, while foreign investors remained active through a series of small- and mid-sized investments across multiple sectors.

“M&A activity remained robust and well-diversified across sectors. Industrials led the market by deal volume with four transactions, representing approximately 17 per cent of total deal count, followed by technology with three transactions, representing 13 per cent of total announced deals. The healthcare, financials, energy and utilities sectors also recorded steady activity, with two transactions recorded in each sector,” Ha said.

In terms of investor composition, domestic investors maintained a stable presence across traditional and strategic sectors.

By contrast, foreign capital predominantly targeted venture, growth, and impact-oriented investments from Singapore and the UK, rather than large-scale private equity deals from Japan and South Korea observed in prior periods. This shift was reflected in transactions such as LeapFrog Investments’ stake in Pharmacity and Stride’s funding round involving UOB Venture Management, TRIREC, Clime Capital Management, and Lightrock, according to Ha.

Source: Capital IQ, Grant Thornton research and analysis

The industrial sector saw a notable transaction involving VinFast Auto's plan to divest its entire stake in VinFast Production and Trading JSC to a consortium of investors in a deal valued at approximately $530 million. The consortium includes Future Investment Research and Development JSC (49 per cent), Ngoc Quy Trading Investment and Development Co., Ltd. (46.5 per cent), and Pham Nhat Vuong (4.4 per cent).

This initial structure is expected to be followed by internal transfers, ultimately making Future Investment the controlling shareholder with a 95.5 per cent stake. The transaction is part of VinFast's broader restructuring strategy to streamline operations and transition towards an asset-light business model by separating manufacturing from its other core activities.

Meanwhile, Thai Hung Trading JSC acquired an additional 11.5 million shares in B.C.H JSC, raising its ownership from around 26 per cent to a little over 49 per cent. The transaction value is estimated at more than $12 million and continues Thai Hung's ownership expansion strategy in B.C.H for 2025-2026.

Established in 2004, B.C.H operates in the sourcing, processing, and trading of scrap metal, steel scrap, coke coal, and related inputs for the steel industry.

Stride, a clean energy technology platform providing financing for rooftop solar and energy storage in Vietnam, raised $15 million in a Series B funding round co-led by Lightrock and TRIREC, with participation from existing investors Clime Capital Management and UOB Venture Management. As part of the transaction, Stride issued convertible preferred shares to investors. The proceeds will support the expansion of solar energy solutions and accelerate Vietnam's clean energy transition.

In healthcare, Pharmacity raised $50 million to $80 million in a funding round led by LeapFrog Investments, an impact investment fund focused on healthcare and financial services in emerging markets. The transaction was structured through the issuance of convertible preferred shares. The new capital is expected to support business expansion, strengthen the company's financial position, and reinforce its market presence in Vietnam's pharmaceutical retail sector.

Tasco Pharma acquired approximately 1.5 million shares of Pharmedic Pharmaceutical Medicinal JSC, with an estimated aggregate value of $7.7 million. Following the acquisition, Tasco Pharma increased its ownership to approximately 15.89 per cent and became the third-largest shareholder of Pharmedic. The transaction coincided with a significant divestment by Vietnam Pharmaceutical Investment and Trading JSC, which reduced its stake from 15.89 per cent to 4.29 per cent, with Tasco Pharma effectively replacing this shareholder within Pharmedic's major investor group.

The utilities sector saw Thu Dau Mot Water JSC and Biwelco Investment and Construction JSC acquire a 48 per cent stake in Phu Yen Water Supply and Sewerage JSC through two negotiated transactions in May, with an estimated total value of $23.6 million.

Meanwhile, a notable technology deal involved SoBanHang, a digital business management platform serving micro-enterprises, raising approximately $3.8 million in a pre-Series A round led by Hong Leong Bank, with participation from OSK-SBI Venture Partners and existing investors FEBE Ventures and Antler.

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