VinFast’s Nasdaq debut features world’s biggest merger: UNCTAD
The Nasdaq listing of Vietnamese EV maker VinFast via a $23 billion reverse merger with a US-based SPAC was the biggest merger & acquisition (M&A) deal in the world in 2023.
The United Nations Trade and Development (UNCTAD) highlighted the information in its World Investment Report 2024 released last week.
VinFast Auto is the carmaking arm of Vietnam's leading private conglomerate Vingroup.
Overall, the value of M&A deals in developing economies dropped by $31 billion year-on-year to $76 billion in 2023, resulting in about half of the global FDI inflows, the report said.
In 2023, global M&A sales reached $378 billion, down 46% year-on-year, with 6,717 deals, down 13%. The automotive industry bucked the trend with a sales value of $31 billion, up 273% year-on-year. The VinFast deal accounted “for a large part of the uptick in the automobile sector.”
Reviewing the manufacturing sector in 2023, the UNCTAD report noted that major multinational enterprises (MNEs) have halved their greenfield investments in China since 2019.
“Among major MNEs, Hon Hai Precision Industry (Foxconn) and Samsung Electronics have reassessed their manufacturing footprint in China because of ongoing trade tensions. Those two have started investing in new manufacturing facilities in their home markets and in other countries such as Vietnam, India and Mexico. Notably, Foxconn tripled the number of manufacturing projects in Vietnam,” the report highlighted.
According to UNCTAD data, FDI inflows in Vietnam reached $18.5 billion in 2023, up from $15.5 billion in 2018, $16.1 billion in 2019, $15.8 billion in 2020, $15.7 billion in 2021, and $17.9 billion in 2022.
As a result, Vietnam’s figure, per UNCTAD, was the third-highest in Southeast Asia, behind Singapore with $159.7 billion and Indonesia with $21.6 billion.
Global FDI flows slipped 2% to $1.3 trillion in 2023, as trade and geopolitical tensions weighed on a slowing global economy. The report underscored that the headline figure exceeded -10% when excluding a few European conduit economies that registered large swings in investment flows.
FDI flows to developing countries dropped 7% to $867 billion in 2023, the report said.
- Read More
Danang calls for mega project investments in suburban district
Danang is calling for investment for large-scale projects in the central city’s Hoa Vang district, which is being developed as an eco-tourism, high-tech industry, agriculture and logistics hub.
Industries - Fri, June 28, 2024 | 11:28 am GMT+7
IFC, Korean partner pump $60 mln towards bad debt resolution in Vietnam
International Finance Corporation (IFC) and South Korea’s Welcome Financial Group (WFG) will invest $60 million in a platform to help resolve non-performing loans (NPLs) in Vietnam.
Banking - Fri, June 28, 2024 | 10:50 am GMT+7
Malaysian budget carrier in talks to establish AirAsia Vietnam
Malaysian carrier AirAsia is in discussions to set up a branch in Vietnam, adding to its overseas presence in Malaysia, Thailand, the Philippines, Indonesia, and Cambodia.
Travel - Fri, June 28, 2024 | 10:05 am GMT+7
Vung Ang 2 thermal power plant likely to have negative environmental impacts: report
Noise and dust from the Vung Ang 2 thermal power plant in Ha Tinh province, central Vietnam are already troubling residents in the vicinity and they want resettlement completed before it becomes operational.
Economy - Fri, June 28, 2024 | 9:21 am GMT+7
Securities firms’ M&A deals bolster Vietnam market dynamics: experts
A slew of acquisitions of securities firms by both Vietnamese and foreign investors over the last year or so have been driven by more than profit making through margin lending, experts say.
Finance - Fri, June 28, 2024 | 8:00 am GMT+7
ASEAN chief proposes measures to foster comprehensive strategic partnership with China
Secretary-General of the Association of Southeast Asian Nations (ASEAN) Kao Kim Hourn has suggested measures to enhance ASEAN-China comprehensive strategic partnership to create greater benefits to the people of bloc member countries and China.
Southeast Asia - Thu, June 27, 2024 | 11:36 pm GMT+7
Vietnam plans 3 railway links with China under Belt and Road Initiative
Vietnam is considering three railway routes linking with China under the Belt and Road Initiative (BRI) and the “Two Corridors, One Belt” initiative, Prime Minister Pham Minh Chinh said Thursday.
Economy - Thu, June 27, 2024 | 7:36 pm GMT+7
Google, Gulf cooperate to run cloud operations in Thailand
Google Asia Pacific Ltd (Google) and Gulf Energy Development Plc (Gulf) have teamed up to run cloud operations in Thailand, thereby opening doors to future cooperation in cybersecurity and artificial intelligence (AI).
Southeast Asia - Thu, June 27, 2024 | 4:47 pm GMT+7
Singapore seizes over $4 bln linked to crime since 2019
Singapore reported on Wednesday that it has seized 6 billion SGD ($4.4 billion) linked to crime and money laundering since 2019.
Southeast Asia - Thu, June 27, 2024 | 4:45 pm GMT+7
Southeast Asian aviation market bounces back
Bouncing back from losses during the Covid-19 pandemic, Southeast Asian airlines are signing big aircraft purchase contracts in a race to meet increasing travel needs.
Southeast Asia - Thu, June 27, 2024 | 4:44 pm GMT+7
Continued strong earnings to sustain Vietnam equity market uptrend: HSBC
Vietnam’s equity market uptrend can be sustained if earnings remain strong, says James Cheo, chief investment officer for Southeast Asia and India at HSBC Global Private Banking and Wealth.
Economy - Thu, June 27, 2024 | 4:43 pm GMT+7
Vietnam persists with controversial zero-tolerance policy against drunk driving
Vietnam’s National Assembly passed the Law on Road Traffic Safety and Order with 79.84% of the votes Thursday, continuing a zero-tolerance policy against drunk driving that has generated some controversy.
Economy - Thu, June 27, 2024 | 3:55 pm GMT+7
Vietnam ideal new manufacturing base for Taiwan semiconductor firm TSMC: Amata exec
Vietnam will be an ideal location if Taiwan Semiconductor Manufacturing Company (TSMC) plans to establish a new manufacturing base amidst ongoing US-China tensions, said an Amata executive.
Industries - Thu, June 27, 2024 | 3:41 pm GMT+7
'Middlescents' spending outpaces other generations in Vietnam: Visa
"Middlescents", those born between 1965 and 1980 and making up over 31% of the world's population, are outpacing other generations in spending, according to recent research by Visa and Kantar.
Economy - Thu, June 27, 2024 | 1:56 pm GMT+7
Vietnam central bank sells $5.5 bln to protect local currency
The Vietnamese central bank has sold a total of $5.5 billion worth of foreign currency since late April in a move to keep the dong devaluation in a controllable range, according to data from Ho Chi Minh City-based private bank ACB.
Banking - Thu, June 27, 2024 | 11:56 am GMT+7
Thailand’s Central Retail begins building mall in northern Vietnam province
Leading Thai retailer Central Retail kicked off the construction of a mall under the GO! brand in the northern province of Hung Yen on Wednesday, the company's 43rd facility in Vietnam.
Industries - Thu, June 27, 2024 | 11:03 am GMT+7