Ha Noi-- Mergers and acquisitions (M&A) in Viet Nam can be used as a tool to support the country's economic restructuring process, said Director of the Hanoi Socio-Economic Research Institute Nguyen Minh Phong.
M&A activities could be seen both as a consequence and tool to facilitate the country's economic restructuring, said Phong.
However, an increase in M&A activities and success in this area depends very much on the speed of continued equitation of state businesses, market openness for foreign investors and pressure on local businesses to repay debts, he said. In addition, the Government's plans on restructuring the economy would also influence the M&A trend to come.
Phong said there were two main trends in M&A activities in the Vietnamese market. The first one was acquisition between large foreign and domestic companies to create strategic partnerships that would benefit both sides in the market. The second trend includes buying stakes from loss-making companies or near bankrupt businesses to make them become investors' affiliated companies.
According to a report released last month, the total value of merger and acquisition (M&A) deals in Viet Nam reached US$1.5 billion in the first quarter of this year.
Foreign investors were especially interested in acquisition of joint ventures and of wholly foreign-invested companies such as Unilever Vietnam Joint Venture Company, which bought a 33% stakes in its local partner the Vietnam National Chemical Corporation to become a wholly foreign-invested company in 2009
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