Vietnam's exports of electronics rises to 96.9 billion USD in 2019 from 47.3 billion USD in 2015, ranking 12th in the world.(Photo: VNA) Hanoi (VNA) - High-growth industries in Vietnam continue to attractinvestor interest despite disruptions caused by COVID-19, according to White& Case, an international law firm that serves companies, governments andfinancial institutions based in the United States.
Vietnam’s mergers and acquisitions (M&A) activity is set foranother robust year following 2020’s potent performance, White & Case wrote in an article posted on its website.
In the first three quarters of this year, deals with disclosed value totalled 3 billion USD. 2021is on track to overtake last year’s total figure of 3.9 billion USD as thereare three months left, it said.
Accordingto the article, deal volume last year reached a record high since 2006,and this momentum continued into the first three quarters of this year with a totalof 41 deals announced, equal to that of 2021’s figure.
Asa result of these deals, the financial services sector attracted the highestdeal value across all sectors during the first three quarters of this year,with a total of 1.5 billion USD in deals with disclosed values recorded.
At a workshop (Photo: VNA) Whilefinancial services topped the value table, the industrials & chemicalssector generated the most deals of any sector with a total of seven dealsannounced during the first three quarters of the year.
Somesizable deals have been recorded within the electronics space such as the Republic of Korea's Sunji Electronic’s 47.7 million USD acquisition of Bangjoo Hi-Tech, amanufacturer of electronic components and circuit boards.
Despitebeing affected by COVID-19, Vietnam continues to establish itself as a regionalhub for electronics production. Thecountry’s electronics exports have climbed from 47.3 billion USD in 2015 to96.9 billion USD in 2019, ranking it 12th in the world.
Atotal of 20 deals were announced in the first three quarters of 2021, justthree deals behind 2020’s record annual total. The healthy level of activitydisplays growing confidence among local firms as they look to beef up theircapabilities and scale up operations.
The Asian Development Bank revised itsforecast for GDP growth for Vietnam from 6.7 percent to 3.8 percent inSeptember but the country’s economy still grow faster than the Southeast Asianregional average of 3.1 percent.
Accordingto the article, the endurance of Vietnam’s dealmaking activity in the face ofthe ongoing COVID disruption displays both market resilience and an enduringappetite for local assets. Strong underlying fundamentals such as an educated,low-cost workforce, a burgeoning middle class, and a stable political climatewill continue to make the country an attractive investment destination, it said.
High-growthindustries such as consumer finance, electronics and retail will continue toattract attention from both strategic and private buyers, providing plenty ofopportunities for dealmaking in the final quarter of the year. The easing ofrestrictions in October and the ongoing vaccination programme will only furtherboost the country’s recovery, said the article./.
