Vietnam’s merger and acquisition (M&A) market saw 265 deals valued at over $4.4 billion in the January-October period, down 23 per cent year-on-year, KPMG Vietnam has reported.

Average deal value was $54.5 million, indicating a shift towards strategic investments requiring greater financial capabilities, it noted.

Vietnam’s M&A market nonetheless remains attractive to international investors, Deputy Minister of Planning and Investment Tran Duy Dong told the Vietnam M&A Forum 2023 in Ho Chi Minh City on November 28.

“The local M&A market is still attractive to foreign investors thanks to the country’s political stability, high economic growth, and the rapid development of its consumer market,” the Deputy Minister added.

Many reputable organizations around the world, he continued, have conducted surveys revealing that global M&A activities have not gone smoothly in 2023, with one of the main reasons being the continual increases to interest rates by the US Fed, which has led to increased financial costs and decreased asset prices.

Figures from the Ministry of Planning and Investment show that total registered FDI capital into Vietnam this year stood at nearly $28.85 billion as of November 20, a 14.8 per cent increase compared to the same period last year.

Of this, capital raised through capital contributions and share purchases reached nearly $5.97 billion, a rise of 46.4 per cent year-on-year.