The global economy is gradually stabilizing after fluctuations from inflation, high interest rates and geopolitical factors, mergers and acquisitions (M&A) activities in Vietnam have shown encouraging signs of recovery. The report "Control of Economic Concentration 2024" recently published by the National Competition Commission (NPC) ("Report") has provided a comprehensive view of this market. As the state regulatory body for competition, the National Competition Commission not only supervises but also promotes a healthy M&A environment, ensuring compliance with the law and the competitive environment in Vietnam.
The report shows that although the value of M&A transactions in Vietnam in 2024 will decrease somewhat compared to the peak in 2022, the growth in the number of economic concentration notification filings, the strong participation of foreign investors and the boom in high-tech sectors are positive indicators. signaling the potential for acceleration in 2025 and the following years.
Signs of recovery and stability of Vietnam's M&A market
The report is built based on data from reputable sources such as Pitchbook, PwC, Mergermarket and Deloitte, combined with internal data from the National People's Committee. Globally, M&A activity in 2024 has rebounded strongly with a value of about $3.71 trillion, up 19% compared to 2023. In Southeast Asia, despite a 6.7% decrease in total value, Vietnam still stands out as the leader in the number of transactions along with Singapore and Indonesia. This reflects Vietnam's attractiveness as an investment destination, thanks to macroeconomic stability, improved business environment and policies to support foreign investment. From the report, we can clearly identify the positive indicators of M&A Vietnam, not only in scale but also in quality and strategic orientation.
According to the Report, Vietnam's M&A market in the period 2021-2024 has experienced significant volatility, but 2024 will witness a slight recovery in the number of transactions, although the overall value decreased compared to the previous year. Specifically, in 2024, 127 transactions with a total value of 99.1 trillion VND will be recorded, compared to 145 transactions and 131.4 trillion VND in 2023. Despite a decrease of 12.4% in volume and 24.6% in value, this figure is still higher than the low point of 2023, and especially the growth in the second half of the year. The report emphasized that the decline was mainly due to the lack of "super-large" deals like in 2022 (235 transactions, with a value of 247.4 trillion VND), but the market is gradually stabilizing thanks to more favorable macroeconomic conditions, with inflation quite well controlled and interest rates falling.
A prominent positive indicator is diversification and a focus on high-growth areas. 2021 started off excitingly with the second quarter reaching 57.5 trillion VND, but by 2024, despite the lower total value, the number of transactions has recovered slightly from the low level of 2023. This shows that investor confidence is returning, especially when compared to Southeast Asia, where Vietnam leads in the number of transactions along with Singapore and Indonesia. The report also points out that this recovery is supported by cross-border capital flows, with a strong dollar boosting investment from North America and Europe into Vietnam.
Moreover, the report analyzes that Vietnam's M&A market is adapting well to the global context. While Asia-Pacific witnessed a boom in the second half of 2024 with China leading the way with a transaction value of up to $278.1 billion, Vietnam has taken advantage of its geographical location and free trade agreements such as CPTPP and EVFTA to attract investment. This recovery is not only a number, but also reflects the strategy of restructuring businesses and optimizing supply chains, which will promote sustainable economic growth.
Technology and real estate are the two sectors driving the growth of the M&A market
The report devotes much of its analysis to sector-specific M&A activity, and this is where the positive indicators are most pronounced. In 2024, the technology industry will lead with a total value of VND 31.65 trillion (accounting for 32%), reflecting a strong investment trend in innovation and digitalization. This was followed by real estate with VND 27.53 trillion (28%) and consumer & retail with VND 26.47 trillion (27%). These figures show that M&A inflows are pouring into areas with high growth potential, bringing great investment value, instead of being dispersed as before.
The tech industry has emerged as a "bright star", with a significant increase compared to previous years. The report emphasizes that deals in this area have not only increased in value but also in quality, with a focus on AI, software and digital services. This is in line with the global trend, where technology and healthcare are challenged but still look for opportunities for expansion. In Vietnam, this boom is supported by the "Digital Government" policy and the need for post-COVID-19 digital transformation. For example, transactions related to medical software, education and software for operations are increasing, contributing to improving the competitiveness of Vietnamese enterprises.
Real estate is still the leading sector in Vietnam's M&A market, with high value reflecting the interest of foreign investors in urban and industrial projects. The report notes that, although Vietnam's real estate market has faced difficulties due to strict regulations, 2024 will witness a recovery thanks to legal reforms and urbanized housing demand. Consumer & retail ranked third, with deals expanding the distribution system, reflecting the vitality of the domestic economy. In contrast, sectors such as finance (0.57 trillion VND) and services (1.02 trillion VND) were lower, but the report assessed this as strategic prudence, not a decline.
Overall, this divergence is positive, as it shows that Vietnam's M&A is moving towards strategic sectors, contributing to the GDP growth target of 6-7% annually. Compared to the rest of the world, where energy and minerals take the lead, Vietnam is taking advantage of technology to integrate deeper.
Source: Ministry of Industry and Trade
Typical transactions in 2024
The report lists some of the typical deals in 2024, emphasizing great value and strategicness. Typically, the case of Saigon - Thu Duc Urban Development Joint Stock Company (SDI) was acquired by Thien Phuc Business Investment and Development Joint Stock Company and partners, with a value of 982 million USD in the field of real estate. This is the largest deal, related to a new urban area project in Binh Duong, showing the attraction of industrial real estate.
Another prominent transaction is the Industrial Investment and Development Corporation - Becamex IDC acquired by Sycamore Co., Ltd. for 553 million USD, also in the real estate sector, emphasizing the interest of foreign investment in large industrial parks in Vietnam.
In addition, Vingroup sold VinES Energy Solutions Joint Stock Company to VinFast Trading and Service Co., Ltd. for 440.2 million USD, in the industrial sector. This reflects Vingroup's internal restructuring strategy, which focuses on clean energy and electric vehicles, a booming sector in Vietnam.
In essential consumption, private equity fund Bain Capital acquired Masan Group for $254.7 million, and SK Group bought Vincommerce General Commercial Services Joint Stock Company for $200 million. These deals not only bring capital but also management technology, helping Vietnamese businesses expand their scale.
These transactions are a positive indicator because they show a large attraction of foreign investment such as from South Korea and the US, promoting technology transfer and job creation. The report emphasizes that, despite the lack of global "mega-deals", deals in Vietnam are increasingly developing in quality.
Profile growth and management efficiency of economic centralized control activities
The most important part of the report is the results of the financial center, where the National People's Committee recorded strong growth in economic center control activities. In 2024, there will be 197 records of financial institution notifications, an increase of 8.7% compared to 2023 and 29.2% compared to 2022. Of which, 140 applications were accepted (71%), only 35 were rejected (18%), proving high processing efficiency and a healthy competitive environment.
The participants are diverse, with foreign enterprises accounting for 51.7% (286/553 enterprises), gradually increasing over the years. This is a positive signal about FDI attraction, helping Vietnam integrate into the international economy. Acquisitions dominated (77%), in line with global trends, while joint ventures and mergers increased, showing flexibility.
In terms of region, 60% of transactions are in Vietnam, with 16 cases of foreign enterprises buying domestic enterprises (mainly real estate). Horizontal form accounted for 63%, mixed 25%, vertical 12%, reflecting industry restructuring. The economic center sector focuses on real estate (35 cases), services (28), energy (31), industry (37), accounting for 69%. In particular, the ICT sector skyrocketed with 13 cases in 2024 (compared to 0 cases in 2021-2023), focusing on AI software, education, and healthcare. This proves that digital transformation activities are taking place strongly in Vietnam.
In summary, the report of the National People's Committee has affirmed that M&A activities in 2024 are gradually recovering from the "slow pace" of 2023 and at the same time shows the vibrant development potential of the M&A market in 2025 and the following years. With these positive indicators, Vietnam promises to be ready to make a breakthrough and become the leading M&A center in the region in the near future.
