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2024 – A Look Back: The Most Notable M&A Deals

2024 was a steady year for M&A in Vietnam. Here are the key transactions that defined the year:

1. Thomson Medical Group’s Acquisition of FV Hospital

Buyer: Thomson Medical Group (Singapore)
Seller: Quadria Capital Fund
Value: USD 381.4 million
Completion Date: January 18, 2024
Significance: A landmark transaction, one of the largest healthcare deals in Southeast Asia, highlighting the region’s growing healthcare market.

Buyer: Warburg Pincus
Seller: Xuyen A Hospital System
Value: Undisclosed
Completion Date: Announced May 2024
Significance: Further demonstrated private equity interest in Vietnam’s healthcare industry, focusing on expanding Xuyen A’s capabilities, particularly in oncology services.

Buyer: Cool Japan Fund, Mekong Capital, and New হরিজন Capital
Seller: Pizza 4P’s
Value: Undisclosed
Completion Date: September 2024
Significance: The acquisition aims to promote Japanese food culture and expand the Pizza 4P’s brand within Vietnam and Southeast Asia. Cool Japan Fund invested approximately USD 10 million into Pizza 4P’s, indicating a focus on expanding Japanese culinary influence in Vietnam.

SOE Privatization: The Vietnamese government continued its commitment to privatizing State-Owned Enterprises (SOEs), but the pace of major privatizations was relatively slow in 2024.

The outlook for Vietnam’s M&A market in 2025 remains positive. Several factors suggest continued activity and potential growth:

Continued Momentum in Healthcare and Consumer: These sectors are expected to remain attractive due to strong fundamentals and long-term growth potential.
Technology and Fintech to Attract More Investment: Vietnam’s rapidly growing digital economy will likely drive further investment in technology startups, especially fintech, e-commerce, and logistics.
Renewable Energy on the Radar: Vietnam’s commitment to renewable energy targets could lead to increased M&A activity in solar and wind power.
Real Estate and Infrastructure Opportunities: Urbanization and infrastructure development will likely create M&A opportunities in industrial parks, logistics, and potentially affordable housing.
SOE Privatization Could Gain Momentum: If the government accelerates the process, it could lead to significant M&A deals involving state-owned assets.
Potential for Larger Deal Sizes: Growing investor confidence and the availability of more substantial assets may lead to an increase in the average size of transactions.
Increased Cross-Border M&A: Vietnam is likely to see more interest from both regional and global players looking to enter or expand in the market.

Global and Regional Economic Environment: The global economic outlook, including inflation, interest rates, and geopolitical stability, will influence investor sentiment.
Regulatory Framework: Continued improvements in the legal and regulatory environment, particularly for foreign investment and M&A, will be crucial.
Political Stability: Vietnam’s stable political environment remains a key factor in its attractiveness as an investment destination.
Competition: As more investors target Vietnam, competition for attractive assets may intensify.