Covid-19 cuts Vietnam’s M&A value by half

By Trung Tin   November 25, 2020 | 12:15 am PT
Covid-19 cuts Vietnam’s M&A value by half
An employee counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy.
The value of mergers and acquisitions in Vietnam is estimated to have fallen by around 49 percent year-on-year to $3.5 billion over Covid-19 impacts.

Most of the M&A activity this year has happened in the real estate, finance-banking, industry and retail sectors, according to a recent report released by the Corporate Investment and Mergers & Acquisitions Center (CMAC).

Vietnam’s M&A value is expected to begin recovering in mid-2021 to around $4.5-5 billion, and to the pre-pandemic figure of $7 billion by 2022, it added.

However, despite this year’s showing, there were some positive statistics. Among six major economies in Southeast Asia, Vietnam’s M&A scene was least affected by the pandemic, the report said.

The ratio of Vietnamese companies as buyers in the deals has risen from 11.8 percent in 2018 to around 33 percent this year, showing that domestic private companies are being more proactive, it added.

Some experts have forecast that the main sectors that will contribute to the recovery of M&A value in Vietnam are telecommunications, energy, infrastructure, pharmacy, education and e-commerce.

Most partners in M&A deals are companies from Japan, South Korea, Singapore and Thailand, and this trend is expected to continue in upcoming years, the CMAC said.

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