According to data from Dealogic, the global M&A deal value has sharply declined by approximately 50% compared to the same period last year, marking the lowest level in a decade. M&A activities in the Southeast Asia region have seen a significant decrease since reaching their peak in 2021. Contributing factors include high interest rates, elevated inflation, and concerns about economic downturn, with Vietnam being no exception.
In unfavorable macroeconomic conditions, a reduction in consumer demand can significantly impact the valuation of businesses. This diminishes the attractiveness of business values in the eyes of buyers as well as the expectations of sellers. Nevertheless, in 2023, the market for business mergers and acquisitions in Vietnam remains dynamic, with the participation of both domestic and international investors. According to the M&A Vietnam report released by KPMG, in the first 10 months of 2023, the total M&A transaction value reached $4.4 billion with over 260 deals, averaging over $54.5 million per transaction (a 23% decrease in value compared to 2022, and a decrease in the number of deals compared to two years ago).
Some notable large transactions can be presented as below:

Japan, Singapore, and the United States continue to be the most active foreign investors, accounting for over 70% of the total announced transaction value. On the other hand, during the first 10 months of 2023, the financial and real estate sectors have become the preferred choices for investors, representing a substantial 70% of the total value of successful transactions.

Source: Capital IQ, KPMG
Recent trends among domestic investors indicate a growing perception of M&A as a strategic avenue for business expansion and rapid growth. Macro-economic fluctuations have led to a heightened demand for M&A among local companies, whether for restructuring, optimizing capital and assets, or mobilizing funds to sustain or propel business operations.
Since the beginning of 2023, the government has proactively implemented numerous measures to stabilize the economy, including promoting public investment, issuing economic support, recovery, and development packages, gradually easing monetary policies, encouraging banks to lower lending rates, and reviewing legal frameworks to ease business challenges.
Particularly noteworthy for the industrial real estate sector in 2023, Vietnam remains a promising destination, attracting global manufacturers. Companies like Apple and Foxconn have shifted a portion of their production to Vietnam, and Dell has urged its component suppliers to be ready for manufacturing capabilities in countries outside of China.
This momentum stems from various factors, such as the trend of multinational companies diversifying their operational regions or supply chains to reduce dependence on China. Shifting production to Vietnam aligns with policies attracting foreign direct investment (FDI), including exemptions, tax reductions, and various incentives, contributing to the resurgence of foreign investment in Vietnam. Furthermore, upcoming infrastructure improvements, such as the Belt Road 3 and Belt Road 4 projects in Ho Chi Minh City, the Bien Hoa - Vung Tau expressway, the Dau Giay - Phan Thiet route, the North-South expressway, Cai Mep - Thi Vai port, and the Gemalink port, will facilitate convenient connectivity for industrial zones.
Considering these factors, we anticipate a robust recovery and further growth in the M&A market in 2024.
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