Greater recognition of Vietnam’s potentials could see a surge in post-pandemic mergers and acquisitions (M&A) by Japanese firms.
Globally, the country ranked fifth in the number of M&A deals involving Japanese companies (21) in the first 10 months this year, Masataka Sam Yoshida, senior managing director of Japan’s M&A consulting firm RECOF Corporation, said at a forum recently.
The figure puts
Vietnam second in Southeast Asia behind Singapore, he said, adding that in
terms of growth rate in the number of Japanese deals in recent years, Vietnam
could compete with the U.K.
While the 21
deals represent a 25 percent fall year-on-year due to Covid-19 impacts, the
drop is still lower than the global reduction of 33 percent in M&A deals
involving Japanese companies, he said.
investors have shown great interest in Vietnam even during the pandemic. The
slowdown in investment is only temporary and the M&A scene will be vibrant
again once travel restrictions are lifted,” Yoshida said.
Asia, Thailand has around 5,500 Japanese companies, while Vietnam has 2,000,
showing that it is somewhat late to invest in the former while there is still
room for new players in the latter, he added.
Most sectors in
Japan have seen development reaching its full potential, and this is why
investors are looking for other growing markets, he said.
capital accumulation of over $2.34 trillion by Japanese companies in the last
20 years is encouraging investors to conduct M&A deals globally. The number
of such deals hit a record high of over 4,000 last year, Yoshida said.
Last year, the
number of deals involving Japanese companies in Vietnam was 33 with a total
value of $389 million, with the latter figure up 2.8 times from 2017.
According to an
official list released by the Japan External Trade Organization (Jetro) in
July, 15 out of 30 Japanese firms the
Japanese government has helped move out of China to Southeast Asia have opted
Jetro said the
subsidies would range from $900,000 to $46.5 million and partly cover the
A survey of 631 Japanese companies in June showed 80 percent expressed hope that the Vietnamese government would soon resume flights between the two countries, and 90 percent wanted the government to lift travel restrictions as soon as possible.