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Vietnam soars high in global M&A attractiveness ranking


Workers at a construction site in Hanoi. Photo by Reuters/Kham.

Vietnam ranks second out of 50 economies in the mergers and acquisitions environment attractiveness index released by market research firm Euromonitor.

The M&A Investment Index looked at 314,002 deals in over 150 industries between 2015 and 2020 to assess M&A attractiveness and opportunities for this and next year by giving the markets a score between zero and 250.

Vietnam's score is only behind the U.S.’s for both years with 102 in 2020 and 94.6 in 2021. The U.S. scored 108.9 and 112.5. For 2021 Vietnam was followed by China, India and the U.K.

In terms of the fastest increase in the scores, Vietnam was fifth in the world behind Singapore, Ireland, the Philippines, and Qatar. Last year, Vietnam scored 74.1.

The report said the turmoil caused by the Covid-19 outbreak severely impacted the M&A markets, but Vietnam’s is forecast to grow thanks to investments from developed economies this year due to tensions between the U.S. and China.

As many companies are shifting their manufacturing from China, Vietnam and nations such as Spain, Poland and Indonesia will benefit due to low borrowing costs and depressed asset values, said the report.

Besides, Vietnam has a very positive outlook thanks to the government's scrapping of the 49 percent foreign ownership cap on listed companies last year.

The pandemic had caused a decline of 25 percent in merger and acquisition deals in the world in the first half of this year.

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