Despite being affected by the Covid-19 pandemic, over the past time, the picture of merger and acquisition (M&A) deals in Vietnam still has bright colors. M&A activities in Vietnam are forecasted to be vibrant again when the pandemic is gradually controlled.
The latest report by the Euromonitor Market Research Group on the merger and acquisition (M&A) index has rated Vietnam as the market with the most dynamic and potential M&A activity globally this year, with a score of 102, only behind the US with 108.9 points. At the same time, it forecasts that Vietnam will continue to hold second place in the top 20 countries with the highest M&A investment index in 2021.
Whether choosing a shortcut by acquiring Vietnamese enterprises with a stable market share, or choosing a longer path by registering new investments, foreign enterprises have been striving to assert their presence in the Vietnamese market. The remaining matter is that the country needs to speed up the progress of strengthening policies, infrastructure, and facilities to welcome the wave of investments sustainably.
According to the General Statistics Office of Vietnam, in the first four months of this year, there were 2,523 times of capital contribution and purchase of shares of foreign investors with a total value of nearly US$2 billion, an increase of 52.6 percent over the same period last year.
Instead of carrying out projects themselves, several foreign investors tend to increase investments into Vietnam via capital contribution, share purchase or acquisition so as to quickly take part in the local market or transfer to other partners for profits.