The M&A market has great growth potential

Despite the difficulties, Vietnam’s expected GDP growth of 8% this year and 6.5% in 2023 will support business and investment activities, especially in the mergers and acquisitions (M&A) market.

>> The Vietnamese M&A market remains dynamic

>> The value of M&A in Vietnam drops by 35.3%

After the M&A, the supermarket chain of Vinmart becomes Winmart.
Photo: VNA/CVN

The recovery trend of the economy is expected to continue favorably even when the government issues a resolution on macroeconomic management solutions next year.

Along with accelerating and effectively implementing the 2022-2023 socio-economic recovery and development program, Vietnam’s economy can fulfill the recovery mission next year, laying the foundation for the next two years.

2022 has been a tough year for the global economy. As a result, foreign investment inflows have declined worldwide.

In Vietnam, through October 20, 2022, newly registered investment reached 9.93 billion USD, down 23.7% year-on-year.

According to a KPMG report, out of 11 billion USD in 2021, the value of M&A deals in Vietnam only totaled 5.7 billion USD in the first 10 months of this year.

However, the forecasts for the future seem more positive. In its update on Vietnam’s economic situation, the World Bank pointed out that registered foreign investment capital jumped to 3.7 billion USD in October, up 122 percent from the same period. period of 2021, thanks to significant investments in new production facilities and companies in the fields of electricity, gas and water.

According to Deputy Minister of Planning and Investment Trân Quôc Phuong, the current difficulties are only temporary, due to objective factors and general trends in the world market.

Vietnam in general, and Vietnam’s M&A market in particular, has always been appreciated by foreign investors as a safe, attractive and potential market, he said.

In addition, Vietnam has implemented the Foreign Investment Cooperation Strategy for 2021-2030, with many favorable policies for investing in large-scale high-tech projects.

The government has also set up a special task force to review and eliminate difficulties and obstacles and promote the implementation of investment projects.

All this will create greater attraction for foreign investment flows, thus promoting the recovery of Vietnam’s M&A market.