Vietnam’s M&A market set for 2025 surge amid regulatory reforms and foreign investment

Oh Hsiu-Hau, managing partner at Allen & Gledhill (Vietnam)

What are your thoughts on the current state of Vietnam's M&A market? Are there any standout sectors?

Vietnam’s M&A market is undoubtedly vibrant, and I see strong growth potential moving forward. Among the key sectors, real estate continues to be a standout, particularly industrial real estate, which has been a hotspot for M&A activity. The recent amendments to Vietnam's real estate laws have made the market more accessible and attractive to foreign investors, creating new opportunities for strategic acquisitions and partnerships.

Another sector worth mentioning is healthcare. Vietnam has seen significant M&A activity in medical services and healthcare facilities, driven by increasing demand and the development of a clearer legal framework. With improved regulations in this area, I expect even more investments and high-value deals to come through. Renewable energy is also emerging as a promising field, alongside these traditional sectors.

You’ve mentioned challenges such as legal procedures and timelines. How do they affect M&A transactions, and what is being done to address these issues?

One of the biggest challenges M&A transactions face in Vietnam is the length and complexity of legal processes. Many deals take nine months to a year to complete due to cumbersome regulatory procedures and uncertainty over approvals. These delays often frustrate foreign investors and can dissuade them from pursuing opportunities in the market.

However, there is progress. The Vietnamese government has been proactive in addressing these concerns by accelerating the digitalisation of administrative processes. This initiative aims to streamline the approval process, making it more efficient and transparent. If implemented effectively, this will reduce transaction timelines and build greater confidence among international investors.

What are your expectations for Vietnam’s M&A market in 2025 and beyond?

Vietnam’s M&A market in 2023 and 2024 has been relatively subdued. While there were a few large deals that boosted overall transaction values, the number of deals has significantly declined. However, I am optimistic about 2025 and beyond, with several key factors driving this optimism.

First, the recent regulatory reforms and new laws in sectors like real estate and healthcare have created a clearer and more stable legal framework, which is already encouraging foreign investors. These reforms will continue to have a positive impact on the market by removing uncertainties and facilitating smoother transactions.

Second, the global economic climate is showing signs of improvement. Interest rate and inflation issues are stabilising, and geopolitical conflicts, such as those in Ukraine and the Middle East, are likely to ease. These developments will create a more conducive environment for cross-border investments and M&A activities.

Finally, Vietnam remains a highly attractive destination for investors. Its political stability, young and skilled workforce, relatively low labour costs, and favourable market dynamics make it a standout choice for those looking to deploy capital in the region.

Additionally, the government’s efforts to streamline administrative processes, especially through digitalisation, are expected to further enhance the investment environment by reducing transaction timelines and building investor confidence.

With these factors in place, I anticipate a surge in M&A activity in 2025, particularly in key sectors like real estate, healthcare, and renewable energy. Vietnam is well-positioned to become a regional hub for strategic investments, and I am confident that the market will regain its vibrancy in the coming years.

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