"VIETNAM M&A ACTIVITY
2011 – 2012 REVIEW”
陳春瓊 (Michael)
MA2N0234
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Content…..

 Definition of M&A
 Why M&A now in Vietnam
 Vietnam economic environment
 Vietnam M&A activities review (2011 -2012)
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1.Definition of M&A

“M&A – Mergers and Acquisitions”
 A merger is a “combination of two companies to form a new company”
 An acquisition is the “purchase of one company by another in which no new
company is formed.”
 Relative terms:
Inbound M&A: a foreign company merges with or acquires an inbound company.
Outbound M&A: a local company merges with or acquires an foreign company,
focusing on movement of investment through oversea.
Domestic: mergers or acquisitions among local companies.
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2.Why M&A now in Vietnam

Vietnam economy has become more opened and integrated to world
economy(event of Vietnam enjoying WTO, 2006) => M&A as a strategy to
invest in Vietnam.
High level of interest rate, difficulties to raise capital from the stock market,
and government’s efforts to discipline and restructure of state owned
enterprise => create attractive opportunities for cross – border M&A.
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3.Vietnam economic environment
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Figure 1. Vietnam ‘s GDP and CPI over last 12 years
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3. Vietnam economic environment
Figure 2. Vietnam Import, Export and trade deficit, 2000 - 2011
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3. Vietnam economic environment
Figure 3. FDI disbursement into Vietnam, 1991 – 2011
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Value US$M
Number of deals
4.Vietnam M&A activities review (2011 -2012)
 266 deals concluded in 2011 with total value of $US 6.3bn including inbound, outbound
domestics M&A.
The number of M&A in 2011 was lower than 2010, Total value in 2011 was 3.7 times higer
than 2010.
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4.Vietnam M&A activities review (2011 -2012)
 Financial services are the most active sectors in term of total deal value.
 These top 3 sectors accounted for 66% of total Vietnam M&A market size.
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4.Vietnam M&A activities review (2011 -2012)
 55 % of the deals had an average deal size of less than US$5m, 19%(51/266
deals), were more than US$30m and only 3% (39/266) were more than
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4.Vietnam M&A activities review (2011 -2012)
 In M&A type: inbound, outbound and domestic, M&A inbound remains an
the most largest rate in M&A activities in Vietnam
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4.Vietnam M&A activities review (2011 -2012)
 Japanese firms accounted for largest deal
value (US $ 940M) and volume (18 deals)
compared to other countries and territories.
 The number of deals from japan accounted for
31% ( 18/59 deals) with deal value accounted
27% of total value
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