Japanese investors interested in Vietnam’s consumer, processing and technology M&A deals: Recof exec

Japanese investors eager to expand their global footprint are particularly keen on mergers and acquisitions (M&A) in Vietnam’s consumer, processing and tech innovation sectors, says Tamotsu Majima, senior director at Recof Corporation.

Recof specializes in cross-border M&A transactions and has already executed a few in Vietnam.

Speaking at an M&A Vietnam forum held last Wednesday in Ho Chi Minh City, he said that despite challenges like inflation and political uncertainties in Japan, companies could not ignore Vietnam’s strong economic growth potential.

“Japan’s GDP growth in recent years has ranged from 0.1% to 2%, while Vietnam’s is projected at 6% to 7%. This makes Vietnam an attractive and promising market for Japanese investors. Although Japanese investors have been less active in recent months, they remain optimistic about securing new deals under Japan’s current cabinet.”

Majima said further that Japanese companies were under pressure to deploy their substantial cash reserves, estimated at $2.3 trillion in private enterprises, into more effective investments.

Public companies, in particular, face shareholder demands to target high-growth markets like Vietnam, further driving investment momentum in the region, he added.

“Vietnam continues to offer tremendous investment potential. If reforms are maintained, it will remain a strong draw for Japanese investors, especially in consumer M&A deals, processing, and innovative technology startups,” Majima said.

Dinh The Anh, head of corporate finance consulting at KPMG Vietnam, highlighted other areas with potential for M&A transactions, saying preschool education and English language training presented numerous expansion opportunities.

Anh said education was an attractive market, and that there was growing interest in universities and colleges.

“Future investments will likely focus on education platforms as the sector evolves to attract foreign capital,” he said.

Anh also cautioned that legal regulations, including program standards and limits on foreign students, must be carefully considered before investing in this area.

Vo Ha Duyen, a partner at Vilaf law firm, said she believed that Vietnam’s 2025 investment outlook was promising, particularly with ongoing legal reforms aimed at attracting green and high-tech investments.

Simplifying investment procedures was key, but reforms need to be comprehensive and consistent, Duyen said.