Mergers and acquisition (M&A) activity in Vietnam saw a 46% year-on-year growth in the first nine months of 2024, reaching a transaction value of $3.2 billion, according to a KPMG report.
The YoY growth came when the combined M&A deal values of neighboring countries, including Thailand, Indonesia, Malaysia, Singapore, and the Philippines, recorded an 11.3% decline.
According to KPMG’s report – Vietnam M&A 2024: Blossoming Opportunities Rooted in Solid Foundations – the period witnessed a total of 220 deals, with an average disclosed transaction value of $56.3 million. The largest transaction value during the year stood at $982 million.
Investors’ confidence in Vietnam is driven by the country’s stable economic outlook, reinforced by government initiatives such as tax incentives, regulatory reforms, and support for high-growth sectors. These efforts have strategically positioned Vietnam as an attractive destination for cross-border investments.
Notably, Vingroup played a pivotal role, completing two major transactions with a combined value of approximately $1.4 billion, representing nearly half of the market’s total deal value for the first nine months of 2024. Without these two significant deals, the country’s deal value would have seen an 18.7% year-on-year decline.
Regionally, despite interest rate easing and accommodative monetary policies designed to stimulate economic growth, M&A activity across Southeast Asia has largely stayed stagnant this year.
The largest deal to date, valued at $982 million, involved a consortium of Vietnamese companies acquiring a 55% stake in SDI Investment and Trade Development Company, a Vingroup subsidiary. This subsidiary holds a 41.5% indirect ownership in Vincom Retail via Vingroup JSC.
Real estate recorded the second-largest transaction, which saw Becamex transfer a residential project valued at $553 million in Binh Duong to Sycamore Limited—a subsidiary of CapitaLand Group from Singapore.
