Experts have claimed a second wave of mergers and acquisitions(M&A) has begun in Vietnam, the Vietnam Economic News reported,citing experts as saying that the second one is stronger both in termsof numbers and value of the transactions.
Specifically, thesecond wave of M&A in Vietnam occurs in the 2014-2018 period. Theorganisation board of Vietnam Mergers and Acquisitions Forum 2014 saidit was expected that the value of successful M&A transactions inthis period would reach 20 billion USD, increasing by 5 billion USDcompared with the first wave of M&A in the 2008-2013 period.
MajorM&A transactions will take place in areas of banking, production ofconsumer goods, real estate, information and technology, transport andlogistics.
According to editor-in-chief of the Vietnam InvestmentReview and Head of the organisation board of the Vietnam M&A Forum2014 Nguyen Anh Tuan, the second wave of M&A took shape based on therecovery of Vietnam’s economy.
GDP growth rate in the first halfof this year was 5.18 percent compared with the 4.9 percent increase ofthe same period last year. Inflation rate was controlled at low levelsand the macro-economy has become more stable.
The statemanagement agencies are paying special attention to M&A activity.The legal framework for this trend is becoming more complete as a widerange of important laws relating to business and investment will berevised such as the Investment Law, the Enterprise Law, the Housing Law,the Real Estate Law and the Law on Securities.
Particularly,according to Senior Managing Director of RECOF Corporation MasatakaYoshida, the second wave of M&A was shaped by the acceleratedequitisation of state-owned enterprises (SOEs) policy of the Government.
Under the equitisation project approved by the Prime Minister,the Government planned to equitise 432 SOEs in the 2014-2015 period. TheVietnamese Government will continue to check and add more SOEs thatneed equitised.
The large scale SOEs like Vietnam Airlines,MobiFone and big corporations in the cement and garment, textileindustries expected to be equitised in the 2014-2018 period will beimportant for the development of M&A transactions.
However,it will be not easy to take advantage of this wave as Vietnam stilllacks the legal documents that rule M&A transactions. At present,the regulations on M&A are only scattered in the Enterprise Law, theInvestment Law, the Competition Law and the civil code. In anotheraspect, investors said Vietnamese enterprises remained unclear in theirfinancial information, making it difficult for investors in negotiationprocess.
To successfully take advantage of the second wave, thelegal documents on M&A need to be consistent. There should also be amanagement or monitoring agency on law execution of M&A and isresponsible for providing consistent professionalism skills relating toM&A activities.-VNA
Specifically, thesecond wave of M&A in Vietnam occurs in the 2014-2018 period. Theorganisation board of Vietnam Mergers and Acquisitions Forum 2014 saidit was expected that the value of successful M&A transactions inthis period would reach 20 billion USD, increasing by 5 billion USDcompared with the first wave of M&A in the 2008-2013 period.
MajorM&A transactions will take place in areas of banking, production ofconsumer goods, real estate, information and technology, transport andlogistics.
According to editor-in-chief of the Vietnam InvestmentReview and Head of the organisation board of the Vietnam M&A Forum2014 Nguyen Anh Tuan, the second wave of M&A took shape based on therecovery of Vietnam’s economy.
GDP growth rate in the first halfof this year was 5.18 percent compared with the 4.9 percent increase ofthe same period last year. Inflation rate was controlled at low levelsand the macro-economy has become more stable.
The statemanagement agencies are paying special attention to M&A activity.The legal framework for this trend is becoming more complete as a widerange of important laws relating to business and investment will berevised such as the Investment Law, the Enterprise Law, the Housing Law,the Real Estate Law and the Law on Securities.
Particularly,according to Senior Managing Director of RECOF Corporation MasatakaYoshida, the second wave of M&A was shaped by the acceleratedequitisation of state-owned enterprises (SOEs) policy of the Government.
Under the equitisation project approved by the Prime Minister,the Government planned to equitise 432 SOEs in the 2014-2015 period. TheVietnamese Government will continue to check and add more SOEs thatneed equitised.
The large scale SOEs like Vietnam Airlines,MobiFone and big corporations in the cement and garment, textileindustries expected to be equitised in the 2014-2018 period will beimportant for the development of M&A transactions.
However,it will be not easy to take advantage of this wave as Vietnam stilllacks the legal documents that rule M&A transactions. At present,the regulations on M&A are only scattered in the Enterprise Law, theInvestment Law, the Competition Law and the civil code. In anotheraspect, investors said Vietnamese enterprises remained unclear in theirfinancial information, making it difficult for investors in negotiationprocess.
To successfully take advantage of the second wave, thelegal documents on M&A need to be consistent. There should also be amanagement or monitoring agency on law execution of M&A and isresponsible for providing consistent professionalism skills relating toM&A activities.-VNA
