HCMC – Capital
contributions and share purchases by foreign investors via mergers and
acquisitions (M&A) deals amounted to around US$1.8 billion in the first
five months of the year, up a whopping 116.2% compared to the same period last
year.
Foreign investors
engaged in 2,061 M&A transactions in
the period, according to the Foreign Investment Agency under the Ministry of
Planning and Investment. Foreign investors via M&A deals have now entered
various sectors, including production and services.
For example, Thailand’s
Siam Cement Group acquired the entire stake worth US$156 million in a cement
manufacturer, Vietnam Construction Materials JSC, in the central province of
Quang Binh, while South Korean food firm CJ CheilJedang Corporation raised its
controlling stake to 71.6% in the former Cau Tre Export Processing JSC late
last year.
In regard to the real
estate sector, Singapore’s Keppel Land Limited through its subsidiary Krystal
Investments Pte Ltd clinched a deal with the Southern Waterborne Transport
Corporation (Sowatco) to acquire an additional 16% stake worth VND845.9 billion
in the Saigon Centre property in downtown HCMC.
M&A deals in the
real estate market could hit a record high this year as many investors are
sounding out opportunities to pour billions of dollars in budget and mid-end
apartments, offices, hotels and industrial parks, according to propertyservices provider
Jones Lang LaSalle Vietnam.
The European Chamber of
Commerce in Vietnam (EuroCham) says many investors consider M&A deals as
the most effective way to penetrate the Vietnamese market and expand their
business as well. This investment trend is expected to continue next year.
The growth of M&A
deals is thanks to the 2014 Investment Law that clarifies some previously
ambiguous regulations, according to analysts.
Specifically, foreign
investors have no need to go through investment procedures if they choose
investment capital contributions and share purchases.
Notably, Decree No.
60/2015/ND-CP allows investors to increase their ownership at many listed and public
companies from 49% to 100%, except for those active in conditional business
sectors.
Besides, they have seen
more opportunities emerging, especially the Government’s effort to equitize
State-owned enterprises to divest State stakes from non-core business
operations.
Source:
English.thesaigontimes.vn
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