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Vietnam mergers and acquisitions market has a great potential

Fri, 08 Aug 2014. Last updated Thu, 25 Jun 2015 08:47

On August 7, 2014, Vietnam Mergers and Acquisitions Forum 2014 took place in Ho Chi Minh City with a subject of Mergers And Acquisitions Before The Second Wave. The event was organized by an investment magazine of Ministry of Planning and Investment.

The forum attracted over 450 delegates from domestic and international enterprises and state administration offices. Speaking at the Forum, Mr. Nguyen Van Hieu, Deputy Minister of Planning and Investment, emphasized that Vietnam government has adopted an equitization program of 400 large-scale enterprises in the next two years. This is a stage for Vietnam to make the comprehensive and stronger integration with the world economy through the negotiation and conclusion of Trans-Pacific Economic Partnership Agreement and the participation in ASEAN Economic Community in 2015.


M&A between FPT and a Slovakia


Along with the process of economic restructuring, mergers and acquisitions (M&A) activities in Vietnam has been constantly increasing. In a period from 2008 to 2013, Vietnam emerged the first wave of M&A. The value of M&A reached $1 billion in 2008 and increased up to $5 billion in 2013. This shows a positive indicator of a great potential of Vietnam mergers and acquisitions market, which has became an attractive form of investment for both domestic and foreign investors. Vietnam M&A market will have big changes from now to 2018, in which, the equitisation of large state-owned enterprises will be received a particular interest.

It has been said that the equitization plan of state enterprise will certainly open new opportunities for Vietnam M&A market. This new wave will be an important driving force to promote the successful implementation of restructuring the economy and equitizing state-owned enterprises."Sourcing", which is expected by M&A market, is a process of equitization of large state-owned corporations such as Vietnam Airlines, Mobifone, Vinatex, Sabeco, PV Gas, Vinamilk, BIDV.


M&A between two banks in Vietnam


Successfully choosing a strategic partnership will bring about 4.79 billion USD for Vietnam government in the next period. Currently, these enterprises has received a great interest from investors. However, mergers and acquisitions in Vietnam are relatively new, therefore, the country has faced some barriers like legal environment, practical experience, and information. According to Mr. John Dity, General Director of Vietnam - Cambodia KPMG company, banking and finance system must be strong enough to efficiently and reliably support for the operation of M&A activities. Buyers and sellers should understand that M&A is not just a simple transaction. Actually, these activities will increase the prosperity in both sides. In addition, government should implement announced policies and administrative reform to ensure a good environment for investors.

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