Vietnam's M&A market shows revival amid Southeast Asia subdued dealmaking

The strong increase in foreign investment capital through capital contribution and share purchase reflects a revival of Vietnam's M&A market in 2025.

“As the global economy is gradually stabilizing and Vietnam’s economy is recording sustainable, high growth, foreign investors are gradually returning, with deals worth hundreds of millions of USD,” Deputy Minister of Finance Tran Quoc Phuong told an M&A forum held in Ho Chi Minh City on Tuesday.

Phuong noted that Vietnam is still considered by foreign investors as a safe, attractive, and promising M&A market. In recent years, the country has even become a strategic destination for many large corporations worldwide and an indispensable link in the global supply chain, especially in high-tech fields such as electronics, semiconductors, and AI.

He cited deals by Nvidia and Qualcomm as significant high-tech M&A examples amid global investment slowdown.

In April this year, Vingroup, Vietnam's biggest listed conglomerate by market cap, announced it had sold its 65% stake in AI company MovianAI to chip giant Qualcomm. Earlier, in December 2024, Jensen Huang, president and CEO of Nvidia, stated that the U.S. chip and AI giant had acquired VinBrain, an AI developer also under Vingroup.

Along with national economic recovery and strong GDP growth, the robust development of domestic private companies plays a significant role in attracting foreign investment, as more and more foreign firms want to partner with domestic businesses.

"Vietnamese investors continue to hold an important position in the M&A landscape, in the context of international investment flows tending to be more cautious in recent years," Phuong added.

Foreign investors made 3,225 capital contributions/share purchases worth $6.11 billion in the first 11 months of the year, up 50.7% year-on-year. The manufacturing and processing sector recorded $2 billion in value, making up the largest portion of 32.7%.

Meanwhile, investment capital of newly-registered FDI projects dropped 8.2% to $15.96 billion in the period, Ministry of Finance data shows.

Vietnam market resilience despite mixed regional signal

According to KPMG, Vietnam’s M&A activity through the first 10 months of 2025 shows a market steadily regaining balance after two volatile years, with dealmaking shaped by rising selectivity, clearer regulatory signals, and the return of larger, higher-conviction transactions.

Meanwhile, across Southeast Asia, dealmaking remained relatively subdued for much of 2025, as tighter financial conditions, valuation gaps, regulatory uncertainty and geopolitical risks tempered investor sentiment, the company stated in a report released at the M&A forum.

"While overall M&A volume continues to moderate in Vietnam, the $2.3 billion in 10-month disclosed value demonstrates that capital is flowing into assets with resilient demand profiles and strategic relevance," the report, named "Vietnam M&A 2025: Opportunities reshaped by disciplined capital", noted.

Sector dynamics in 2025 highlights this rebalancing. Real estate, materials and health care emerged as the top drivers of deal value, reflecting investor preference for core operating assets, essential manufacturing inputs and under-supplied healthcare capacity.

Meanwhile, consumer-oriented sectors recorded a softer contribution amid a cautious consumption environment earlier in the year, even as medium-term fundamentals remain intact.

Investor participation also broadened in 2025. Domestic investors maintained the largest share of disclosed deal value, while regional capital from Singapore, Japan, the U.S. and South Korea re-accelerated through targeted investments across real estate, health care, industrials, and materials.

"This mix indicates a market transitioning from consolidation-ledactivity toward more diversified, sector-specific opportunities," KPMG highlighted.

While total disclosed deal value reached $2.3 billion in the first 10 months of 2025, deal volume eased to 218 transactions, extending the gradual decline since 2021. This reflects "more cautious underwriting, stricter due diligence and disciplined valuations, particularly in sectors facing margin pressure or slower near-term demand."

Market value this year was driven by several sizeable deals. Hyosung Chemical Corporation divested a 49% stake at Hyosung Vina Chemical Co., Ltd., a basic chemical manufacturer in Vietnam, to Hyosung Vina 1 Co., Ltd. for $277 million.

Aeon Financial Services Co., Ltd. acquired Post and Telecommunication Finance Co., Ltd., from SeABank for $162 million. Ares Management Corporation invested $150 million to buy a 30% stake at Medlatec Group, one of the largest private healthcare systems in Vietnam.

Together, these transactions represent close to $1 billion of disclosed value. Notably, these top mega deals were led by foreign and regional investors, underscoring continued cross-border appetite for highquality, asset-backed and strategically essential platforms, according to the report.

"Golden" time for Vietnamese entrepreneurs in M&A market

Dang Van Thanh, chairman of multi-sector group TTC, said in the period of 2026-2030, with the implementation of new policies, especially the Politburo's Resolution 68 on private economic development, Vietnamese enterprises will have "full conditions" to expand cooperation, improve management capacity, and attract capital flows from international investors.

Thanh emphasized that this is a "golden" time for Vietnamese entrepreneurs to proactively participate more deeply in the M&A flow, considering this an opportunity to lift their status, promote innovation, and expand scale in the context of Vietnam becoming increasingly attractive in the eyes of foreign investors.

He cited TTC's acquisition of the Bourbon sugar factory and its collaborations with major corporations such as JERA (Japan) in the energy sector and Kuramoto in the agricultural sector as examples of success.

Regarding the trend of sustainable development, Thanh noted that the Government's commitment to Net Zero by 2050 is a significant advantage for businesses that know how to leverage natural resources.

"With a coastline of more than 3,260 km and a favorable climate, Vietnam is behind but will develop very quickly in the field of renewable energy. This is a very favorable opportunity for the 2026-2030 period," he added.

Formula for success in M&A deals

During the discussion session on capital raising strategy and portfolio restructuring, Nguyen Hoang Long, deputy general director of Gelex, shared the formula for Vietnamese businesses to succeed in international M&A deals.

He said three core competencies are needed: "Firstly, strategic capability and long-term thinking, because M&A is not short-term trading but a process of integration into the ecosystem. Secondly, deal-making skills, especially with foreign partners. Finally, and most importantly, post-M&A management capabilities to realize synergistic value."

Meanwhile, Pham Duy Khuong, managing partner at ASL law firm, argued that sectors such as energy, real estate, infrastructure-industry, and technology all share common characteristics: large scale, high technical complexity, and significant legal risks.

"Therefore, the big question for international investors is whether the legal framework is sufficient to ensure their confidence in disbursing funds," he noted.

"In short, if we do well in three factors of legal transparency, the buyer understanding the market well, and the seller improving their level of professionalism, we can completely expect a more vibrant M&A market, more transactions, and a more effective restructuring process," Khuong added.

Tamotsu Majima, senior director at M&A consultancy Recof Vietnam, told the forum that Thailand currently has approximately 6,000 Japanese businesses, while the number in Vietnam is only 2,000. This difference shows that the growth potential of the Vietnamese market is still very large, he told the forum

He emphasized the new trend of Japanese investors looking for Vietnamese partners to expand the market together, rather than simply establishing production facilities.

In a typical case, Japan’s Kokuyo on December 4 announced a plan to acquire a 46.82% stake stake at Vietnam's major stationery manufacturer Thien Long Group (HoSE: TLG) for up to JPY27.6 billion ($178.2 million), as the Japanese office-supplies giant expands its footprint in Southeast Asia. The stake is currently held by Thien Long An Thinh Investment Corporation (TLAT).