Foreign investment funds are returning to the Vietnamese market.

The M&A market will witness more excitement in the coming time, foreign investors will return after a period of studying the market, especially Korea and Japan.

On November 27, Dau Tu Newspaper organized the 16th Vietnam Mergers and Acquisitions (M&A) Forum with the theme "Bustling Deals" in Ho Chi Minh City.

Mr. Dinh The Anh, Executive Member, Head of Corporate Finance Advisory Department, KPMG Vietnam shared at the forum.

Sharing at the forum, Mr. Dinh The Anh, Executive Member, Head of Corporate Finance Consulting, KPMG Vietnam said that in the past 2 years, the M&A market has declined. However, after the decline, there are signs that the market is returning, buyers have recorded an increase in quantity, and foreign cash flow is rushing back to Vietnam.

“The market will see more excitement in the coming time and there will be a few deals about to be completed. Among them, Korean and Japanese investors who have been quite quiet in the past 2 years are now returning. In particular, Korean investors who have businesses or activities in Vietnam are having confidence in the Vietnamese market,” Mr. Dinh The Anh shared.

For example, the education sector is attracting many investors, from preschool education, English in particular and foreign languages in general, colleges, universities, etc. It can be seen that the education sector is expanding horizontally.

"This is considered a very attractive market," commented Mr. Dinh The Anh.

M&A market: Major movements from the macro context and international capital flow trends.

However, Mr. The Anh also mentioned two major challenges that need attention.

First, the pricing gap between buyers and sellers is still very wide;

The second is the approval process.

“We have to consult with many agencies and this process takes a lot of time, making the planned plans set by businesses difficult to predict. A typical example is when dealing with Japanese businesses, the approval process is still quite slow. Not only with Japan, this situation also happens with investors in many other countries, significantly affecting both buyers and sellers. This is a huge barrier that Vietnam needs to quickly improve to attract foreign investors,” said Mr. The Anh.

Source: https://baodautu.vn/quy-dau-tu-ngoai-dang-quay-tro-lai-thi-truong-viet-nam-d231121.html