Favourable policies needed to lure investments via M&A deals: Experts
Compared to three years ago, domestic investors outperformed on the merger and acquisition (M&A) market, but the most valuable deals still belonged to foreign investors, heard a conference on M&A trends in Ho Chi Minh City on March 12.
Some speakers at the conference on M&A trends in HCM City on March 12. (Photo: VNA)
HCM City (VNA) – Compared to three years ago,domestic investors outperformed on the merger and acquisition (M&A) market,but the most valuable deals still belonged to foreign investors, heard aconference on M&A trends in Ho Chi Minh City on March 12.
The event was organised by the Business Association ofHigh-Quality Vietnamese Products in coordination with relevant units.
According to the Vietnam M&A Transformation report byKPMG, the total value of M&A transactions in Vietnam reached 4.4 billionUSD in the first ten months of 2023, involving over 260 deals. The average dealvalue stood at 54.5 million USD.
Nguyen Tuan Anh, a lecturer at RMIT University Vietnam,Saigon South Campus, said consumer goods and non-essential goods among thepotential industries in Vietnam's M&A market. Investors will targetbusinesses with stable and long-term product investment strategies includingagriculture and food with the basic foundation of the economy - food productionand distribution, he added.
To create an open environment for the M&A market and attract foreign investments, experts recommended that it is necessary to promulgate more favourable policies for divestment activities, alongwith shortening the duration for a M&A deal.
It should be noted that environmental, social, governance(ESG) trends will increase and become one of the key factors driving M&Adeals. Statistics showed that every year, at least two out of five deals requireESG during the appraisal process.
🌃 Regarding the M&A trend, Huynh Thanh Binh Minh, Directorof TAEL Partners Investment Fund in Vietnam, pointed out that completing a capitalcall and carrying out an M&A deal involve the engagement of many units. Businesses need to proactively evaluate the company's strengthsand build a management strategy that has the ability to attract capital, she said, addingthat it is necessary for them to restructure corporate governance activities,business strategies, market orientations and brand building.
With such favourable conditions as signing many free trade agreements, a large population and stable geopolitics, Vietnam is a potential M&A market.However, insiders said Vietnam must have rational policies and mechanisms to attract capitalin various fields through M&A deals as the capital flows into Southeast Asian countries are the same./.
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