Strong GDP growth supports rebounding M&A market

01:55 PM @ Monday - 28 November, 2022

Vietnam's economy is expected to grow by 8 per cent this year and 6.5 per cent next year, creating a pedestal for investment and business activities.

Vietnam's economy is expected to continue despite the challenges posed by global economic fluctuations. According to the Resolution on the Socio-Economic Development Plan 2023 approved by the National Assembly (NA) in November, Vietnam will continue prioritising macroeconomic stability, controlling inflation, promoting GDP growth, and ensuring economic balance.

A stable macro-economy will create a driving force for investment, production, and business activities, including attracting foreign investment and M&A activities.

This year, the global economy has seen fluctuations, exerting a decline in foreign investment inflows. According to the Ministry of Planning and Investment, the total newly registered capital, adjusted and contributed capital to buy shares and buy contributed capital of foreign investors reached more than $22.46 billion as of October 20, equivalent to 94.6 per cent of the same period in 2021.

A KPMG report showed that the value of M&A deals in Vietnam only reached $5.7 billion in the first 10 months of this year, down 35.3 per cent on year, compared with $11 billion in the whole of last year. There were only about 350 deals in the first 10 months of 2022. Meanwhile, the number was more than 700 deals in 2021.

The average value per M&A deal also decreased from $31 million in 2021 to about $16.5 million in the first 10 months this year. The M&A market in Vietnam is slowing down in terms of the value and number of deals.

On the sidelines of the Vietnam M&A Forum 2022, deputy Minister of Planning and Investment Tran Quoc Phuong said that the current difficulties were temporary due to objective factors impacting the general trend of the global market.  – VNN –