M&A in Việt Nam expected to be bustling in 2025

HÀ NỘI — Merger and acquisition (M&A) activity in Việt Nam is expected to be bustling again, thanks to the domestic economic recovery and higher foreign investment.

At the Vietnam M&A Forum 2024 held in HCM City on November 27, Deputy Minister of Planning and Investment Nguyễn Đức Tâm said that M&A has become an effective capital mobilisation channel, contributing to promoting the process of economic restructuring, renewing the growth model, and equitising state-owned enterprises.

Tâm said that the socio-economic picture for 2024 was basically one of recovery, reaching 14 out of its 15 main economic targets, with an estimated GDP growth of 6.8 – 7 per cent.

Those achievements will create an important foundation for new breakthroughs in economic growth in 2025.

Among them, foreign investment is a bright spot. In the first ten months of 2024, Việt Nam attracted nearly US$27.3 billion of foreign investment capital, up 1.9 per cent year-on-year. Disbursed investment reached about $19.6 billion, up 8.8 per cent.

Many large projects in the fields of semiconductors and energy have received new investment or increased capital, such as batteries, photovoltaic cells, and components.

Việt Nam has many advantages to attract investment in pioneering industrial fields, such as semiconductors, artificial intelligence, and clean energy.

However, Việt Nam’s M&A market has shown some slowing signs.

In the first 10 months of 2024, this market had only 2,669 transactions of capital contribution and share purchase made by foreign investors, with a total capital of more than $3.68 billion. Those were down 10.4 per cent in terms of the number of transactions and down 29 per cent in value compared with the same period in 2023.

However, according to Tâm, this slowdown is only a temporary pause, due to the general trend of the global market, not full recovery in the world economy after the COVID-19 pandemic and geopolitical fluctuations in the world.

Việt Nam M&A market is always assessed by foreign investors as a safe, attractive and potential market.

Tâm said that the National Assembly has just approved the 2025 Socio-Economic Development Plan with an important goal of GDP growth at 6.5 – 7 per cent.

Việt Nam’s economy is forecast to maintain positive growth momentum, while institutions and legal frameworks strengthened in 2024 will have a clearer impact on economic growth and development in 2025.

To achieve this goal, the National Assembly has proposed 12 groups of tasks and solutions to implement the 2025 Socio-Economic Development Plan, including drastic actions to remove institutional and legal bottlenecks.

Tâm believes that if the proposed solutions are implemented drastically and effectively, the Vietnamese economy can achieve all its targets for economic development next year.

“This will be an important foundation for Việt Nam to attract more foreign investment in general, and investment via M&A activities in particular,” Tâm said.

“Once the economy recovers, the foreign investment flows will accelerate into Việt Nam, combined with the growth of domestic enterprises, M&A activities will soon recover and develop strongly.”

Foreign capital inflows

Việt Nam’s M&A market, one that has been dominated by domestic investors for some considerable time, is now forecast to attract even higher numbers.

In a report on Việt Nam M&A market, KPMG said that foreign investors – mainly from Japan, South Korea, Singapore and the US – which had the most deals in Việt Nam in the past, are expected to return from 2025 onward.

Việt Nam’s M&A landscape in the remaining months of 2024 and in 2025 presents an increasingly compelling opportunity for investors navigating an evolving regional dynamic.

Tax incentives, regulatory reforms and strategic support for high-growth sectors are not simply symbolic – they are concrete, value-enhancing measures that position Việt Nam as an increasingly attractive market for cross-border capital.

Combined with a strong focus on infrastructure development and digital modernisation, these initiatives are setting Việt Nam on course to become a focal point for M&A activity in Southeast Asia.

This alignment of economic stability, policy clarity and sectoral growth potential offers a powerful narrative for investors seeking durable, long-term returns in one of Asia’s most dynamic markets, according to KPMG.

This year, Việt Nam expects to attract $39-40 billion in foreign investment capital, equivalent to last year.

Many large projects in high-tech fields, including semiconductors, have been pouring into Việt Nam.

LG Display has increased its capital by $1 billion for its new-generation screen factory in Hải Phòng, after Samsung Display announced plans to increase its investment of $1.8 billion in its factory in Bắc Ninh.

A series of big names, such as Goertek, Foxconn and Luxshare, are continuing to send capital into Việt Nam. Many other foreign investors in the fields of semiconductors and AI are preparing plans to boost investment and business activities in the country, including Marvell, Lam Research, Synopsys, Infineon Technologies, HanaMicron, and Amkor Technology.

Việt Nam also has many ambitions in developing the fields of semiconductors and AI, according to Minister of Planning and Investment Nguyễn Chí Dũng. That will help Việt Nam not only participate in the global value chain, but also build an advanced and attractive semiconductor industrial ecosystem in the region and the world. — VNS

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