Vietnam’s M&A market is forecast is expected to touch $6.5-$6.9 billion in 2018 (Photo: baodautu.vn)Hanoi (VNS/VNA) – Vietnam’sM&A market is forecast to reach 6.5-6.9 billion USD in 2018, which is lowerthan the 2017’s record of 10.2 billion USD.
“We expect the M&A value in 2018 to decline from 2017, as this year may nothave as big deal as Sabeco,” said Dang Xuan Minh, AVM Vietnam’s CEO.
Vietnam’s merger and acquisition (M&A) market hit over the10-billion-dollar landmark for the first time last year and is at the turningpoint to reach a new era of opportunities in the next decade.
M&A value continued to rise 55 percent year-on-year to reach 3.55 billionUSD in the first six months of this year.
“One year ago, even very optimistic forecasts hardly envisaged the M&A boomin 2017 which thrust Vietnam’s M&A value to 10.2 billion USD, a growth of175 percent over 2016. This is a record number, far surpassing previousforecasts,” said Le Trong Minh, editor-in-chief of the Vietnam InvestmentReview (VIR).
Minh was speaking at a press conference on June 24 introducing the Vietnam M&AForum 2018 themed “New thrust, new era” which will take place on August 8 inHCM City.
Nearly 4,000 M&A deals with total value of 48.8 billion USD have beenexecuted in the past decade. The market size in 2017 increased by nine-foldagainst 2008, of which the record deal of the decade was 4.8 billion USDThaiBev (Thailand) paid for a 51-percent stake in Sai GonBeer-Alcohole-Beverage Corp (Sabeco).
Though this value is still modest in comparison with Singapore (62.3 billion USDin 2016) and Indonesia, Thailand and Malaysia (11-16 billion USD), Vietnam’s M&Aactivity has grown tremendously in both quantity and quality.
It is an effective capital mobilisation channel, which contributes to thecountry’s economic reform and helps enhance competitiveness of Vietnamesebusinesses.
The M&A boom in 2017 and first half of 2018 was fueled by the initialpublic offerings (IPO) of big enterprises as well as encouraging economicpolicies, which will remain the driving force for the market in the nextdecade, Minh said.
Only 8 percent of State capital in State-owned enterprises has been sold, amongthem were record sales at Sabeco and Vinamilk.
According to Nguyen The Phuong, Deputy Minister of Planning and Investment, theprocess of economic integration and restructuring has accelerated SOEequitisation as well as the development of private sector and foreigninvestment, opening up more M&A opportunities in Vietnam.
However, he also pointed out some challenges to the M&A boom in the nextperiod, including the rising protectionism, trade war (especially between theUnited States and China), geopolitical tensions and decelerating growth in bigeconomies.
In a prudent scenario (without big deals), Vietnam’s M&A value willmaintain at more than 5 billion USD for four consecutive years since 2015.However, to boost the market to a new high, it needs stronger moves by theGovernment and businesses, Minh said.
In 2018, M&A deals are expected to continue focusing on consumer goods,retail and real estate. In addition, the fields of telecommunications, energy,infrastructure, pharmaceutical and education will also be on radar ofinvestors.
In 2017, the sectors with the highest M&A value were consumer goods (57 percent),real estate (27 percent), finance-banking (4 percent) and chemicals (3 percent).However, in the first six months of 2018, the leading sectors shifted to realestate (66.8 percent), finance-banking (19.1 percent) and industrial production(9 percent).
The 10th Vietnam M&A Forum 2018, co-organised by the VietnamInvestment Review and AVM Vietnam under the Ministry of Planning andInvestment, will review the 10-year journey to assess the M&A trends in thenext few years. The event will also announce awards to honour the best deals,best advisory firms of 2017-18 and the deal of the decade.-VNS/VNA
“We expect the M&A value in 2018 to decline from 2017, as this year may nothave as big deal as Sabeco,” said Dang Xuan Minh, AVM Vietnam’s CEO.
Vietnam’s merger and acquisition (M&A) market hit over the10-billion-dollar landmark for the first time last year and is at the turningpoint to reach a new era of opportunities in the next decade.
M&A value continued to rise 55 percent year-on-year to reach 3.55 billionUSD in the first six months of this year.
“One year ago, even very optimistic forecasts hardly envisaged the M&A boomin 2017 which thrust Vietnam’s M&A value to 10.2 billion USD, a growth of175 percent over 2016. This is a record number, far surpassing previousforecasts,” said Le Trong Minh, editor-in-chief of the Vietnam InvestmentReview (VIR).
Minh was speaking at a press conference on June 24 introducing the Vietnam M&AForum 2018 themed “New thrust, new era” which will take place on August 8 inHCM City.
Nearly 4,000 M&A deals with total value of 48.8 billion USD have beenexecuted in the past decade. The market size in 2017 increased by nine-foldagainst 2008, of which the record deal of the decade was 4.8 billion USDThaiBev (Thailand) paid for a 51-percent stake in Sai GonBeer-Alcohole-Beverage Corp (Sabeco).
Though this value is still modest in comparison with Singapore (62.3 billion USDin 2016) and Indonesia, Thailand and Malaysia (11-16 billion USD), Vietnam’s M&Aactivity has grown tremendously in both quantity and quality.
It is an effective capital mobilisation channel, which contributes to thecountry’s economic reform and helps enhance competitiveness of Vietnamesebusinesses.
The M&A boom in 2017 and first half of 2018 was fueled by the initialpublic offerings (IPO) of big enterprises as well as encouraging economicpolicies, which will remain the driving force for the market in the nextdecade, Minh said.
Only 8 percent of State capital in State-owned enterprises has been sold, amongthem were record sales at Sabeco and Vinamilk.
According to Nguyen The Phuong, Deputy Minister of Planning and Investment, theprocess of economic integration and restructuring has accelerated SOEequitisation as well as the development of private sector and foreigninvestment, opening up more M&A opportunities in Vietnam.
However, he also pointed out some challenges to the M&A boom in the nextperiod, including the rising protectionism, trade war (especially between theUnited States and China), geopolitical tensions and decelerating growth in bigeconomies.
In a prudent scenario (without big deals), Vietnam’s M&A value willmaintain at more than 5 billion USD for four consecutive years since 2015.However, to boost the market to a new high, it needs stronger moves by theGovernment and businesses, Minh said.
In 2018, M&A deals are expected to continue focusing on consumer goods,retail and real estate. In addition, the fields of telecommunications, energy,infrastructure, pharmaceutical and education will also be on radar ofinvestors.
In 2017, the sectors with the highest M&A value were consumer goods (57 percent),real estate (27 percent), finance-banking (4 percent) and chemicals (3 percent).However, in the first six months of 2018, the leading sectors shifted to realestate (66.8 percent), finance-banking (19.1 percent) and industrial production(9 percent).
The 10th Vietnam M&A Forum 2018, co-organised by the VietnamInvestment Review and AVM Vietnam under the Ministry of Planning andInvestment, will review the 10-year journey to assess the M&A trends in thenext few years. The event will also announce awards to honour the best deals,best advisory firms of 2017-18 and the deal of the decade.-VNS/VNA
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