Experts upbeat about M&A scene in 2019

Economy, Vietnam, Vietnam Finance News

Monday, February 11, 2019 – 11:19:00 Print

 Experts have predicted a banner year for merger and acquisition (M&A) activities in 2019.


Hanoi (VNA) – Experts have predicted a banner year for merger and
acquisition (M&A) activities in 2019 thanks to recent positive

According to Vice Chairman of the Vietnam Foreign Investment Business
Association Nguyen Van Toan, M&A deals surged 160 percent to 9.9 billion
USD in 2018, making disbursement of foreign direct investment (FDI) hit a
record of 19.1 billion USD in the year.

This shows foreign investors’ increasing confidence in Vietnam as well as
achievements in state divestment and equitisation, he affirmed.

Toan said Chinese enterprises will shift their investment strategies by pouring
more capital into building plants in Vietnam to take advantage of its
integration commitments within ASEAN , ASEAN and other free trade deals.

Despite expressing her optimism about M&A market in 2019, Dr Nguyen Thi
Viet Nga from the Academy of Finance said the sector still faces challenges.

As there are no full details for M&A in Vietnamese documents and laws, it
is difficult for state agencies to manage and businesses to engage in the
activities, she said, adding that lacking competence about the field stops local
firms from finding suitable partners.

Serving as brokers for M&A deals, securities, financial and audit companies
have not performed their roles well due to limitations in regulations, human
resources, professionalism and information.

Nga also said opaque financial reports and overvaluation of M&A deals
affect FDI attraction in the field.-VNA


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