Since our inaugural edition of the M&A Survey, the Vietnamese economy has continued to grow in strength, driven by inbound investments in a number of sectors. Between 2013 and 2017, disbursed Foreign Direct Investment (“FDI”) grew by more than 58% from US$ 8.9 billion to US$ 14.1 billion. M&A activity has grown at an even faster pace of 115% over the same period in terms of deal value. Regionally, Thailand, South Korea, and Japan are among the remarkable investors, while leading global private equity houses such as Warburg Pincus, TPG, KKR, and Navis Capital are becoming more active.
Why invest in Vietnam?
The rapidly expanding Vietnamese market offers a number of attributes that makes investing in this country attractive: a fast growing economy; integration to the global economy via participation in numerous free trade agreements; a strategic location in the center of Southeast Asia and its access to a regional marketplace of 600+ million people; good and reasonable labor supply; and a high urbanization rate. Due to these reasons, Vietnam is becoming well known as a manufacturing hub, growing consumer market, and door to other Asian markets.
We have conducted a detailed sentiment survey with deal professionals in the market, including more than 300 professionals working in private equity houses, securities companies, and M&A advisory firms, as well as owners of companies.
In addition to the insights gained from surveyed professionals, this year’s survey captures the view of KPMG Vietnam’s senior deal makers and transaction advisory experts regarding current market dynamics. Through this engagement, our report is able to showcase the drivers, success stories, and hard lessons learnt in the country