Mergers and acquisitions (M&A) activity in Vietnam has been on the rise in recent years, and 2021 has seen a continuation of this trend. According to data from Dealogic, the value of M&A deals in Vietnam in 2021 was $12.9 billion, up from $11.3 billion in 2020. This increase is in line with the overall trend of rising M&A activity in Southeast Asia, as businesses look to expand and diversify their operations in the region.
One of the key drivers of M&A activity in Vietnam has been the country's strong economic growth, which has attracted foreign investors looking to tap into the country's expanding consumer market. Vietnam's favorable business environment and relatively low labor costs have also made it an attractive destination for foreign companies looking to set up or expand their operations in the region.
In 2021, M&A activity in Vietnam has been led by the financial, telecommunications, and real estate sectors. Some of the notable M&A deals in these sectors include the acquisition of Vietnam's leading mobile phone retailer, Mobile World Investment Corporation, by Thailand's Central Group for $2.2 billion, and the acquisition of a controlling stake in Vietnam's largest insurer, Bao Viet Holdings, by Japan's Sumitomo Mitsui Financial Group for $1.3 billion.
Overall, M&A activity in Vietnam is expected to continue to grow in the coming years, as companies look to take advantage of the country's favorable business environment and expanding consumer market.