The moribund Vietnamese property market may see a glimmer of light through an increasing number of mergers and acquisitions (M&A).
According to Savills Vietnam real estate agency expert Troy Griffiths, there is a rapid need for cash among investors that boast large land reserves but lacked capital to invest, resulting in a rising number of M&A deals.
AVM Vienam M&A research and consultancy director Dang Xuan Minh said that the rise in M&A deals in the real estate sector is due to rising property prices, and the considerable amounts of hot money that have flowed into the market.
M&A offers an effective tool to promote revenue growth and restructuring, meaning only the most competent investors would carry out projects, Minh said.
He said that with large amounts of capital, foreign investment funds and enterprises and strong domestic private conglomerates will benefit from M&A deals.
Since the beginning of the year, the property market has witnessed a series of major M&A deals, as evidenced by Thien Minh Tourism Company's acquisition of a chain of six hotels and resorts from Hong Kong's EEM Victoria valued at 45 million USD and Vinaland Company's transfer of all shares in a housing development project to a Vietnamese partner, worth up to 10.9 million USD.
To explore M&A options further, the Vietnam Investment Review newspaper and AVM Vietnam will host a M&A Vietnam forum in HCM City on June 9.
A seminar on M&A strategy and an exhibition to promote businesses and investment opportunities will also be held at the event./.
According to Savills Vietnam real estate agency expert Troy Griffiths, there is a rapid need for cash among investors that boast large land reserves but lacked capital to invest, resulting in a rising number of M&A deals.
AVM Vienam M&A research and consultancy director Dang Xuan Minh said that the rise in M&A deals in the real estate sector is due to rising property prices, and the considerable amounts of hot money that have flowed into the market.
M&A offers an effective tool to promote revenue growth and restructuring, meaning only the most competent investors would carry out projects, Minh said.
He said that with large amounts of capital, foreign investment funds and enterprises and strong domestic private conglomerates will benefit from M&A deals.
Since the beginning of the year, the property market has witnessed a series of major M&A deals, as evidenced by Thien Minh Tourism Company's acquisition of a chain of six hotels and resorts from Hong Kong's EEM Victoria valued at 45 million USD and Vinaland Company's transfer of all shares in a housing development project to a Vietnamese partner, worth up to 10.9 million USD.
To explore M&A options further, the Vietnam Investment Review newspaper and AVM Vietnam will host a M&A Vietnam forum in HCM City on June 9.
A seminar on M&A strategy and an exhibition to promote businesses and investment opportunities will also be held at the event./.
