Mergers and Acquisitions in Vietnam's Emerging Market Economy: 1990-2009

Abstract

This paper is the first major and thorough study on the M&A activities in Vietnam's emerging market economy, covering almost entirely the M&A history after the launch of Doi Moi. The surge in these activities since mid-2000s by no means incidentally coincides with the jump in FDI and FPI inflows into the nation. M&A industry in Vietnam has its socio-cultural traits that could help explain economic happenings, with anomalies and transitional characteristics, far better than even the most complete set of empirical data. Proceeds from sales of existing assets and firms have mainly flowed into the highly speculative industries of securities, banking, non-bank financials, portfolio investments and real estates. The impacts of M&A on Vietnam's long-term prosperity are, thus, highly questionable. An observable high degree of volatility in the M&A processes would likely blow out the high ex ante expectations by many speculators, when ex post realizations finally arrive. The effect of the past M&A evolution in Vietnam has been indecisively positive or negative, with significant presence of rentseeking and likelihood of causing destructive entrepreneurship. From a socioeconomic and cultural view, the degree of positive impacts it may result in for domestic entrepreneurship will perhaps be the single most important indicator. JEL Classifications: G34, G38, O16

The Politics of Marketising Asia

“…First, the intensity of M&A activity in Asian countries has increased remarkably during the last decades (Fischer 1997(Fischer , 2001Mody and Negishi 2001 ), especially in relation to the many restructuring operations conducted in the aftermath of the 1997 financial crises (Zhan and Ozawa 2001;Breinlich 2006;Vuong et al 2009). This pattern affected both developed economies (e.g.…”

Mergers and Acquisitions Activities in Vietnam Consumer Goods Sector 2000 – 2022 and The Role of Advisors

“…In this trend, the banking and finance sector is always in the top industries, attracting a large amount of foreign direct investment, contributing to help domestic banks increase their financial capacity, improve their performing quality of activities, and bring better service to customers. Since "the first major and thorough study on the Mergers and Acquisitions activities in Vietnam's emerging market economy after the launch of Doi Moi" (Vuong et al, 2009), lots of literature has focused on the M&A market in Vietnam as a whole. As fas as I aware of, this paper is the first attempt to specifically draw a picture of M&A activities in Vietnam's consumer sector in 2000-2022 period.…”