Geopolitical impacts on Vietnam’s exports can hinder M&A in 2025: KPMG exec

Geopolitical conflicts and U.S. policies that could weaken Vietnam's exports are key factors with potential to hinder mergers and acquisitions (M&A) in 2025, says Nguyen Cong Ai, a partner with KPMG Vietnam.

While there are many positive aspects for the M&A market next year, the obstacles have to be taken seriously, he said at a M&A forum held Wednesday in Ho Chi Minh City.

First, the U.S.'s massive planned expenditure under the new government may continue inflationary pressures and keep interest rates high, raising the cost of capital.

Second, protectionist actions in the U.S. may reduce Vietnamese exports to the major market.

Third, crises in Ukraine and the Middle East might disrupt trade, energy flows and economic stability, forcing investors to remain on the defensive.

Fourth, delayed real estate recovery may constrain consumer spending and investment, lowering economic growth.

Ai also mentioned significant trends that the M&A market could see in 2025.

Beyond relying on traditional financial reviews, investors and businesses will seek to buy companies that prioritize ESG (environmental, social, and governance) considerations and social responsibility. ESG might be considered a critical part of evaluating a company's development.

While artificial intelligence cannot replace humans, it has become an indispensable tool. Therefore, the way a firm employs AI will have an impact on its future, he said.