Lagging M&A scene looking for a big push

July 20, 2017 | 12:41

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Merger and acquisition (M&A) activities in Vietnam in 2017 will need a big push, as the market is forecasted to go through a slowdown due to a lack of large deals from foreign investors as well as the state’s delay in divestment from state-owned enterprises.

VIR editor-in-chief Le Trong Minh at the press conference

According to the report released at the press conference this morning, in 2016, the total value of M&A deals in Vietnam reached a nine-year record of $5.8 billion, signifying an 11.92 per cent increase against 2015 performance.

However, since the end of 2016, M&A activities have been slow, with an acute lack of large deals. In the first quarter of 2017, the total value of M&A deals in Vietnam was only $1.1 billion.

This opinion was voiced by experts at “Vietnam M&A Forum 2017” press-conference organised by VIR and AVM Vietnam this morning, in Hanoi.

M&A activities in 2017 face challenges, including the completion between Vietnam and other ASEAN member states to attract foreign investment, obstacles in equitising state-owned enterprises, the low quality of Vietnamese firms, as well as the scale of the economy.

"In order to create a breakthrough for the M&A market, which is forecasted to go through a slowdown, the Organising Board of Vietnam M&A Forum 2017 chose the theme “Seeking a big push.” Through the theme, experts, managers, and enterprise leaders will discuss opportune fields and sectors for a breakthrough. Some of them show potential for large-scale IPOs or are likely to be accelerated by removing the foreign ownership limit or by favourable changes in government policy and administrative procedures, setting the grounds for hefty M&A deals," Minh told the conference participants.

Thereby, the M&A environment in 2017-2018 is waiting for a breakthrough in large-scale deals, including the state divestments from Hanoi Beer Alcohol and Beverage Joint Stock Corporation (Habeco), Saigon Beer Alcohol and Beverage Joint Stock Corporation (Sabeco), Vietnam Dairy Products Joint Stock Company (Vinamilk) and Petrolimex, among others.

Vietnam M&A Forum 2017, co-organised by VIR and AVM Vietnam, will take place on Thursday, August 10, 2017 at GEM Centre, Ho Chi Minh City.

As the ninth edition of the annual event, Vietnam M&A Forum 2017 will welcome 30 international and Vietnamese guest speakers and 500 senior leaders from investment funds, Vietnamese and international corporations as a platform to meet and share opportunities as well as experiences from the most notable deals of 2016-2017.

Vietnam M&A Forum 2017 is jointly supported by Masan Group (Platinum Sponsor), Nam Long Group and Intralinks Asia-Pacific (specilised in due diligence in Singapore) (Gold Sponsors), Ben Thanh Group (Silver Sponsor), Baker & Mckenzie, KPMG, CBRE Vietnam, Thanh Thanh Cong Group, Tien Phuoc Real Estate, Recof, Viet Capital Securities, and Viet Dragon Securities (Co-Sponsors).

Netco Post and Grab are the forum’s Delivery Sponsors, while Pullman Hotel Saigon acts as the Hotel Sponsor.

Meanwhile, VIR's Vietnam M&A Outlook 2017 Special Publication is sponsored by Hung Thinh Group, Deloitte, Vietnam-Singapore Industrial Park, SonKim Land, Saigon-Hanoi Securities, VNG Corporation, Habeco, BIM Group, VietinBank, and Truong Hai Auto.

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