Breakthroughs for M&A market sought

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An merger and acquisition (M&A) Forum was held in HCMC, targeting to analyze challenges and seek breakthroughs for the M&A market.

The Switzerland-based Institute for Mergers, Acquisitions and Alliances (IMAA) reported that M&A deals in Viet Nam hit an all-time high of US$5.8 billion in 2016, a growth of 11.92% from 2015.

However, since late 2016, M&A activities in Viet Nam showed signs of decline with scattered deals. In Q1, 2017 only, total M&A deals valued US$ 1.1 billion, equivalent to 75% of that in the same period last year. Without any breakthrough, total M&A value would be unable to exceed the impressive figure last year.

Addressing the event, Minister of Planning and Investment Nguyen Chi Dung hoped to listen to breaking comments on how to boost the M&A market in Viet Nam.

According to Mr. Dung M&A activities can spur infrastructure development in Viet Nam, a current growth imperative.

The sector has entered a new chapter in the 2014 to 2018 period, riding what experts have called the second wave of investment. 

The capital inflow from foreign investors during this period is expected to reach US$20 billion, 25% of which could happen this year.

This is largely driven by equitisation commitments of major State owned enterprises, the rise of the private sector and steady investment from foreign economic entities.

In order to catalyze growth, investment in the form of M&As in the infrastructure sector needs to increase and expand across many branches of the economy.

The projects would include upgrading roads, railways, airports and seaports to global standards, as well as establishing a stable network of real estate and retail conglomerates./.

By Khanh Phuong