Foreign investors from Singapore, South Korea, Taiwan, Japan, and Malaysia have contributed around $1.4 billion to merger and acquisition (M&A) transactions in Vietnam's real estate sector in the first seven months of the year. The total value of M&A activities in Vietnam during this period reached nearly $3.2 billion, a 62% decrease compared to the same period last year. Challenges within the legal framework for foreign ownership of real estate in Vietnam have slowed down M&A processes, leading to extended timelines and higher costs. Experts anticipate a more active M&A landscape in the real estate sector starting from 2024.
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Investors originating from Singapore, South Korea, Taiwan, Japan, and Malaysia contributed approximately $1.4 billion to merger and acquisition (M&A) transactions within Vietnam's real estate industry during the initial seven months of this year. Throughout this period, the total value of M&A activities in Vietnam's market reached nearly $3.2 billion, representing a decline of 62% in comparison to the same timeframe last year. This insight was shared by Dao Thien Huong, Deputy General Director of EY Consulting Vietnam JSC.
Huong indicated that foreign investors, particularly from Taiwan, Singapore, and South Korea, comprise 92% of the purchasers engaging in real estate-related M&A deals in Vietnam. Huong also noted that several M&A deals within the real estate sector are currently in the negotiation phase. However, these processes have encountered numerous challenges, including issues within the legal framework pertaining to foreign investors' ownership of real estate in Vietnam.
According to Ngo Thi Van Quynh, who serves as the Director of An Legal company, the intricate legal process stands as a primary factor contributing to the sluggish advancement of M&A transactions. This situation has led to both extended timeframes and elevated expenses. Quynh expressed her optimism that starting from 2024, there will be a livelier atmosphere surrounding M&A ventures within the real estate domain.
Mergers and Acquisitions (M&A) activities in the Vietnamese market refer to the process of companies combining, purchasing, or selling assets, ownership, or control in order to achieve strategic goals. In Vietnam's context, M&A transactions primarily involve the exchange of businesses, properties, or other assets within various industries, including real estate. These activities often allow companies to expand their operations, diversify their portfolios, gain market share, or enhance their competitive positions. The M&A process involves negotiation, due diligence, legal and financial assessments, and regulatory approvals. The success and impact of M&A activities can significantly shape the business landscape and economic development of the country.
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