Despite a global decline in mergers and acquisitions (M&A) activity over the past two years, the year 2024 has commenced positively in Vietnam, reflecting a noteworthy 80% increase in deal value year-to-date, amounting to USD 3.5 billion within the initial five months of the year.
Southeast Asia-focused funds are currently holding an unprecedented USD 18 billion in dry powder across both Private Equity and Venture Capital sectors, which is anticipated to be deployed over the forthcoming years.
Vietnam’s M&A landscape is characterized by robust activity, with the Consumer and industrial sectors leading in transaction volume, while the Real Estate and Financial Services sectors prevail in deal value, attributed to substantial transactions occurring in those areas.
Prominent global private equity firms, including KKR, Bain Capital, and CVC, are intensifying their market presence. This expansion is projected to generate a significant wave of deals, as consolidation remains a crucial strategy for value creation among these firms.
Looking forward, it is anticipated that there will be a strong influx of deals in the Healthcare, Education, Consumer, and Digital Infrastructure sectors. These domains are positioned for substantial investment, driven by a growing middle class, advancements in technology, and ongoing infrastructure development.
At East-West Equities, we are enthusiastic about the opportunities presented in Vietnam’s M&A market. For further insights, we invite you to connect with us. Together, we can foster growth and establish enduring value.