Early April saw the SK Group of the Republic of Korea announce the signing of an agreement with the Masan Group Corporation in order to acquire a 16.26% stake in VinCommerce, a Masan subsidiary, for a cash consideration of US$410 million.
The two deals served to warm up the Vietnamese merger and acquisition (M&A) market, indicating that it remains attractive to investors, with foreign financiers still seeking to conduct valuable deals.
The country attracted a total of US$12.25 billion worth of FDI throughout the reviewed period, equal to 99.3% of the figure from the same period last year, including US$8.5 billion which went on new projects.
According to Nakajima Takeo, chief representative of the Japan External Trade Organisation (JETRO) in Hanoi, its survey conducted on business trends indicates that the majority of firms think it will be difficult to expand production and business over the next one to two years. Despite this, they still consider the Vietnamese market to be a leading investment destination among ASEAN members.
Alain Cany, president of EuroCham, attributes these results to confidence shown by European firms within the Vietnamese market due to enterprises not being significantly impacted by the COVID-19 pandemic.
However, amid fierce competition coming from other countries in terms of FDI attraction, experts believe that the country should work harder to win favour.
John Rockhold, vice chairman of Amcham, said that Vietnam should consider non-carbon facilitation, while Nguyen Hai Minh, vice president of EuroCham, believe that it requires more high-tech human resources in order to meet the various needs of investors.