M&A to remain bustling business in Vietnam

July 21, 2009

Mergers and Acquisitions (M&A) activities have become a more important part in the business culture in Vietnam and will continue bustling in the future, said an economist of the world-renowned finance consultant PriceWaterhouseCooper.

The remarks were made by Stephen Gakill, an M&A expert, at an international workshop entitled “M&A in the context of global integration and economic recession” on July 20 in Ho Chi Minh City .

Vietnam is considered to lead the Asia-Pacific region in the growth rate of M&A deals. The first M&A deal in Vietnam was in 2000. In 2007, the number of successful M&A deals hit 113 with the total value hovering around 1.8 billion USD.

Although the total value of the 146 deals registered in 2008 only topped 1 billion USD, a 40 percent drop from 2007, it was still considered an encouraging development against the backdrop of the global economic crisis.

According to international experts at the workshop, more and more enterprises are looking to M&A as a solution to avoid the threat of closure or bankruptcy in the post-crisis period.

The Government of Vietnam encourages and facilitates investment activities through M&A transactions, said Vo Thanh Bien, Vice Minister of Industry and Trade. However, he added, deals of this kind should be kept under state supervision in order to ensure efficiency and fairness.

The workshop, co-organised by the Ministry of Foreign Affairs and the Ministry of Industry and Trade, drew the participation of more than 200 local and foreign enterprises as well as experts from the US Trade Commission, the Japan Fair Trade Commission, the European Chamber of Commerce and PriceWaterhouseCooper.

The workshop is expected to help boost local investment as well as draw more foreign capital to the country.

VietNamNet/VNA

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