Mergers and acquisitions are expected to boom this year in the consumer goods and real estate sector, say experts.
Big foreign investors have a keen eye on M&As in consumer goods inVietnam, with their investments in dairy giant Vinamilk (VNM), foodprocessor Masan Group (MSN), confectionery Kinh Do Corp (KDC) or GoldenGate (who owns famous restaurant chains like Ashima, Kichi Kichi, SumoBBQ) all huge financial successes.
According to many experts,the strong growth of M&A deals in Vietnam is a normalphenomenon. Many Vietnamese firms have revealed their weaknesses duringthe economic crisis. They have potential but lack management experienceand development strategy. Such companies are the best M&A targetsfor foreign investors, who seek good deals at cheap prices, the expertssaid.
Hoang Tung, founder and manager of Pizza Home Company,predicted more M&A deals would be carried out in the field ofconsumer goods this year.
"It always takes time to develop adistribution system in the consumer goods sector and M&As were aneffective way to own one," Tung said, noting that famous brands likeBurger King, Subway, Domino's, Starbucks and McDonald's have plans toenter the Vietnamese market.
Meanwhile, with large inventoriesaccompanied by poor liquidity and the Government planning to extendloans to home buyers only but not to real estate companies this year,weak domestic property companies would likely have to sell properties toexternal partners to survive.
HCM City Real EstateAssociation's chairman Le Hoang Chau said Vietnam's real estatemarket has been on the investment list of many foreign corporationssince last year and they could disburse their capital this year.
However, Andy Ho, managing director and head of investment atVinaCapital, has a different view. He said M&A investors should notbuy each project but instead buy all the company's assets via the stockmarket, reports the Phap luat thanh pho Ho Chi Minh newspaper.
"With the current dismal developments on the stock market, shares ofreal estate companies were being traded under their actual value(including their projects)," Ho said.
In November, VinaCapitaloffered for sale a 50 percent stake in the Hanoi-based five-star hotelMetropole. This promised to be a notable deal in the property marketthis year.
The last days of 2012 saw a big deal in the bankingsector with the Japanese Bank of Tokyo Mitsubishi UFJ paying 743 millionUSD to buy a 20 percent stake in Vietinbank (CTG).
Financialsector also draws foreign interest but M&As in this sector areforecast to be more difficult as they have to follow the restructuringroad map and be approved by the Government.-VNA
Big foreign investors have a keen eye on M&As in consumer goods inVietnam, with their investments in dairy giant Vinamilk (VNM), foodprocessor Masan Group (MSN), confectionery Kinh Do Corp (KDC) or GoldenGate (who owns famous restaurant chains like Ashima, Kichi Kichi, SumoBBQ) all huge financial successes.
According to many experts,the strong growth of M&A deals in Vietnam is a normalphenomenon. Many Vietnamese firms have revealed their weaknesses duringthe economic crisis. They have potential but lack management experienceand development strategy. Such companies are the best M&A targetsfor foreign investors, who seek good deals at cheap prices, the expertssaid.
Hoang Tung, founder and manager of Pizza Home Company,predicted more M&A deals would be carried out in the field ofconsumer goods this year.
"It always takes time to develop adistribution system in the consumer goods sector and M&As were aneffective way to own one," Tung said, noting that famous brands likeBurger King, Subway, Domino's, Starbucks and McDonald's have plans toenter the Vietnamese market.
Meanwhile, with large inventoriesaccompanied by poor liquidity and the Government planning to extendloans to home buyers only but not to real estate companies this year,weak domestic property companies would likely have to sell properties toexternal partners to survive.
HCM City Real EstateAssociation's chairman Le Hoang Chau said Vietnam's real estatemarket has been on the investment list of many foreign corporationssince last year and they could disburse their capital this year.
However, Andy Ho, managing director and head of investment atVinaCapital, has a different view. He said M&A investors should notbuy each project but instead buy all the company's assets via the stockmarket, reports the Phap luat thanh pho Ho Chi Minh newspaper.
"With the current dismal developments on the stock market, shares ofreal estate companies were being traded under their actual value(including their projects)," Ho said.
In November, VinaCapitaloffered for sale a 50 percent stake in the Hanoi-based five-star hotelMetropole. This promised to be a notable deal in the property marketthis year.
The last days of 2012 saw a big deal in the bankingsector with the Japanese Bank of Tokyo Mitsubishi UFJ paying 743 millionUSD to buy a 20 percent stake in Vietinbank (CTG).
Financialsector also draws foreign interest but M&As in this sector areforecast to be more difficult as they have to follow the restructuringroad map and be approved by the Government.-VNA
