Trends and M&A prospects in Vietnam
Investment in Vietnam - With the advantage of strategic geographical location, young
population, rich natural resources, stable political system, international
economic integration án so on. Vietnam is currently the most attractive investment
destination among the emerging markets, overtaking China, Thailand, Malaysia -
The Director of the Center for Investment Promotion for Industry and Trade,
Trade Promotion Agency Tran Kim Oanh said.
In 2017, foreign direct investment (FDI) in Vietnam reached
over US$ 33 billion, up 55.5 % over last year. There are 126 countries and
territories with projects in 18 areas in Vietnam, worth over US$ 33 billion, of
which manufacturing and processing industries continue to attract the most
foreign investors.
Commenting on the trend and prospects for M&A in Vietnam,
Mr. Seck Yee Chung, representative of Baker & McKenzie Law Firm, said that
"Many foreign investors are choosing to invest in listed enterprises and
have long-term vision to realize investment objectives in Vietnam.”
In particular, Asian investors such as Japan, Korea and
Thailand are investing in many different fields such as consumer goods, financial
services, distribution, retails, construction materials production, chemistry, etc.
However, the region assessed to have many large investors as
North America and Europe have not had many deals yet, mainly some big deals in
the field of oil and gas and consumer goods.
Over the past few years, the M&A market in Vietnam has
witnessed many mergers and acquisitions in the retail and consumer goods, real
estate, industry ... with foreign elements such as SCG Group and Public Vietnam
Construction Materials, CJ Group and Cau Tre Company, Deasang Company and Duc
Viet Food Company.
Especially, the latest one, afternoon 18 December, ThaiBev
company asked Vietnam Beverge to purchase 343.66 million Sabeco shares,
equivalent to 53.59% of charter capital.
The opportunity to breakthrough
Ms.Tran Kim Oanh, Director of the Industry and Trade
Investment Promotion Centre said that "Vietnam is the second largest rice
exporter in the world. Besides, tea, cashew and seafood also emerged as key
export goods of the country. However,
raw material exports account for the bulk.
The food processing industry has an annual domestic
consumption of US$ 30 billion and is forecast to grow steadily more than 18% a
year between 2014 and 2019. With a population of more than 93 million people,
there is a tendency to change the mode of consumption in the food processing
industry, which opens up a great opportunity for the attention of foreign
investors in the form of M&A.
In addition, the government has approved the Electricity Plan
in 2020 that will put into operation an additional 5,000 MW per year, build
more power projects, develop new and renewable forms of energy such as wind and
solar in the coming period of 2025.
Textile and garment sector gained turnover of US$ 30 billion,
an increase of 14.5% / year, especially footwear export of over US$ 10 billion,
up by 9%/year. These are also considered as potential industrial sectors that attract
investment through M&A.
According to the General Statistics Office, Vietnam's
industrial production in general in the first 11 months of 2017 increased 9.3%
over the same period last year.
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