VIR kicks off annual Vietnam M&A Forum 2022

The 14^th annual Vietnam M&A Forum, organised by VIR, under the auspices of the Ministry of Planning and Investment with the theme of Activating New Opportunities will take place at the GEM Convention Center in Ho Chi Minh City on November 23.

Despite recent geopolitical and financial barriers, M&A activities in Vietnam have recovered positively. Capital flows from private equity funds are becoming the main driving force behind the accelerating M&A market.

However, according to the latest report from GlobalData, the third quarter of 2022 saw the lowest volume of global M&A activities, with the total value down 48 per cent compared to the same period in 2021.

Just over 8,250 M&A deals worth $544 billion were recorded, compared to around 9,600 deals worth $1.05 trillion recorded in the same quarter of 2021. Large-scale transactions have slowed, with the M&A demand forecasted to experience a recession next year.

In 2021, private equity funds have invested more than $2 trillion, with trillions of dollars more in reserve to close new investments.

According to data from KPMG, the Vietnamese market saw the total value of M&A reach $5.7 billion in the first 10 months of 2022, down 35.3 per cent compared to the same period in 2021. Singapore has been the leading country in cross-border transactions with about $1.2 billion, followed by the US ($570 million) and South Korea ($370 million).

However, like in 2021, transactions continued to be led by Vietnamese enterprises, with a value of more than $1.3 billion – up 10 per cent over the same period in 2021. The main industries that attract investments include consumption ($1.2 billion), real estate (nearly $1 billion) and the industrial sectors ($800 million). In particular, the energy industry is becoming the hot spot in 2022 in terms of value growth, reaching nearly $600 million, a six-fold increase compared to the whole of 2021.

In Vietnam, PE funds and venture capital still saw strong growth in the first months of this year, despite uncertainties in the capital market. In particular, Vietnam's innovation startup ecosystem in 2022 is forecast to see a total investment of about $2 billion.

Editor-in-Chief of VIR and chairman of the Vietnam M&A Forum's Organising Committee Le Trong Minh said, “This year's prominent annual event on investment channels via M&A will delve into prospects and obstacles in M&A activities in Vietnam, as well as how to continue to lure capital flows from deep-pocketed investors. International funds, particularly PE and VC funds, are still seeking lucrative industries and companies to put cash into.”

Meanwhile, Nguyen Cong Ai, senior partner for Deal Advisory at KPMG Vietnam, noted that M&A activities in Vietnam will continue to face headwinds.

"Nonetheless, there were no billion-dollar transactions in 2022 so far, despite a rise in demand for financial services, consumption, and retail industries,” Ai said at the press conference.

The event is anticipated to draw over 500 guests who will examine M&A prospects in Vietnam in detail.

M&A Forum 2022 will include two major sessions.

In the first session, titled M&A Opportunities in Volatile Markets, the presenters will analyse and discuss inflation, USD and other major currencies’ fluctuations, and their impact on the pace of M&A activities in emerging markets like Vietnam.

During this time of rigid monetary policy, many businesses have trouble obtaining enough sources of money, which results in the need to either sell assets or raise funds. However, many buyers are unable to locate a suitable financial source. In light of the present circumstances, there may be several prospects for M&A, but the question is where the financial source comes from.

In the second session, Establishing New Values, renowned deal-makers will delve into how novel possibilities can give rise to novel values, and what the next generation's deal-making value drivers are. Furthermore, experts will also share their insights into the challenges of putting M&A transactions into action, as well as strategies for overcoming those challenges.

Investors, entrepreneurs, investment professionals, lawyers, and consultants will be able to build strong connections with potential partners.

This year's forum will, as usual, recognise and honour the most significant M&A transactions and the best M&A consultants for the 2021-2022 period.

The annual special edition Vietnam M&A Market 2022 will be to be released in Vietnamese and English in November, providing readers with the most up-to-date information on M&A in Vietnam. See more at: https://vir.com.vn/data/VIR-Events/mavietnam/index.html

Assessing Japanese M&A deals in a turbulent period Vietnam’s merger and acquisition (M&A) market remains appealing to Japanese investors despite global uncertainties. Masataka “Sam” Yoshida, head of the Cross-border Division of RECOF Corporation and CEO of RECOF Vietnam Co., Ltd., talked to VIR’s Thanh Van about the wave of Japanese M&A in Vietnam at this turbulent time.

The importance of mutual respect and face-to-face talks for strategies in M&A The Vietnamese government is now working to reorganise weak financial institutions, as well as implement equitisation of state-owned banks. Yoshizawa Toshiki, board member at Orient Commercial Joint Stock Bank, told VIR’s Luu Huong how the wave of tie-up deals could expand significantly if local authorities could lift the foreign ownership limit.

M&A in banking industry expected to stay high in H2 Mergers and acquisitions (M&A) in the banking industry are expected to remain high for the rest of the year as the industry continues the digital transformation process, according to experts.