Boosting industry via M&As

M&As represent a key channel in industrial investments, December 19 conference hears.

There are many industrial investment opportunities in Vietnam via merger and acquisitions (M&As), Mr. Vu Ba Phu, Director General of the Vietnam Trade Promotion Agency (Vietrade), told the Industrial Investment Promotion Through M&A conference on December 19.

The provided information on investment opportunities as well as measures to improve the efficiency of industrial investment promotion via M&As and to implement Vietnam’s industrial development strategy to 2025 and vision to 2035.

Mr. Phu emphasized that Vietnam’s industry sector has seen strong performance, with the manufacturing index growing at an annual average of over 7 per cent since 2012. Industries recording significant growth in 2016 included metal production, up 17.9 per cent, motor vehicle manufacturing 16.4 per cent, and computers, electronics and related items 12.8 per cent.

Recent figures from the General Statistics Office (GSO) show that Vietnam’s industrial production continued to grow well during 2017, with the manufacturing index for the first eleven months rising 9.3 per cent year-on-year, higher than the 7.4 per cent increase in the same period of 2016.

The M&A market has witnessed many business deals with foreign parties, such as SCG Group and the Vietnam Construction Materials Company, the CJ Group and the Cau Tre Company, and the Daesang Company and the Duc Viet Food Company.

Many foreign investors now choose to invest in listed companies and have a long-term vision when investing in Vietnam. Asian investors, such as those from Japan, South Korea, and Thailand, are investing in many different fields, including consumer goods, financial services, distribution, retail, and construction materials production.

Relatively few investors are from North America and Europe, and those that are in Vietnam are primarily in consumer goods and oil and gas. Mr. Phu therefore pointed out that it is necessary to adopt measures to further promote international investment, especially from the US and Europe.

Domestic capital, meanwhile, is gradually asserting its position in the M&A market, with many local firms developing long-term strategies in which M&As are an important tool. Domestic investment funds are also growing in both number and capital, to the benefit of domestic businesses.

by My Van / VET