M&A market in Vietnam witnesses big deals despite Covid-19

SGGP
Despite the Covid-19 outbreak causing a negative impact on the global economy, the nation’s mergers and acquisitions (M&A) market has witnessed transactions valued at approximately US$500 million.

Customers look at the display of a sample or model representing the condominium (Photo: SGGP)

Customers look at the display of a sample or model representing the condominium (Photo: SGGP)

At the Vietnam M&A Forum 2020 lately held , the Ministry of Planning and Investment said that the coronavirus pandemic has impacted greatly on international investment and commerce activities.
Due to the impact of Covid-19 and other unfavorable factors, the value of this year’s M&A market is estimated to decline to US$3.5 billion, equal to 48.6 percent compared to last year.
There has been a pause in the market in the first nine months because of both subjective and objective but there will be more transactions later, said the real estate and investment management firm.
However, there have been big deals worth over $500 million lately. Noticeably, Mitsubishi Corporation and Nomura Real Estate acquired 80 percent of Vingroup's Grand Park project in District 9.  A group of investors headed by KKR invested VND15.1 trillion, or $650 million, in Vinhomes to acquire 6 percent of shares.
Lately, City Garden JSC and Swire Properties announced a partnership today to develop “The River” a luxury residential property in the Thu Thiem area in Ho Chi Minh City.
This proves that investors have placed their trust in Vietnam’s macroeconomy and its recovery after the coronavirus pandemic. Value-add investors are seeking to generate heightened yields by harvesting untapped revenue potential or creating value through property upgrades
However, investors are more cautious in assessing property in the context of global crisis resulting in sellers’ disappointment. Economic experts predicted amid Covid-19 development, there will be new waves in M&A 2020 market such as purchase of industrial parks, M&A in hotel chains and M&A in restaurant chains.

By Minh Huy - Translated by Uyen Phuong

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