Mergers and Acquisitions in Vietnam: An Introduction to Key Guidelines and Processes
The Vietnamese government has streamlined the merger and acquisition (M&A) process to encourage investment in new sectors of the economy. And for foreign investors that see establishing a business in Vietnam as too cumbersome, the M&A route provides a unique solution to many obstacles.
With an M&A, investors can enjoy preexisting access to consumers, locations, and distribution channels. This local knowledge can prove critical to successful operations within Vietnam’s vibrant but rapidly changing investment environment.
It’s an increasingly popular investment route. M&A deals hit US$9.9 billion in 2018, according to the Vietnam Association of Foreign Invested Enterprises. While significant, it did not outpace M&A deals in 2017. Still, M&A deals are expected to pick up in 2019, particularly in the retail sector.
Most recently, VinCommerce, part of the local conglomerate Vingroup, acquired Shop&Go, a 24/7 convenience store, while South Korea’s GS25 store acquired Zakka Mart.
Deals like these should support the forecast 14 percent growth rate for M&A value this year. The General Statistics Office (GSO) projects total M&A revenue to reach US$484 billion by 2025. This growth will go beyond retail, and into real estate, renewable energy, and technology, among other sectors.
However, to successfully carry out M&As within Vietnam, it is important to recognize the legal foundation for M&As, and understand the procedures and restrictions associated with acquisitions.
This is an excerpt from an article appearing in Vietnam Briefing, a subsidiary of Dezan Shira & Associates. For the latest economic, regulatory and business news from Vietnam, visit vietnam-briefing.com.
- Mergers and Acquisitions in Vietnam: An Introduction to Key Guidelines and Processes
- Dezan Shira & Associates