Vietnam’s mergers and acquisitions (M&A) landscape is set for a busy year in 2025, with foreign investment expected to play an even bigger role, especially from international funds. This momentum is driven by the Vietnamese government’s plan to upgrade the country’s stock market to “secondary emerging market” status under the FTSE classification, a move that could open the door to more opportunities in real estate, finance, and energy.
Why 2025 is poised for more foreign capital
Analysts expect overseas investors to continue dominating Vietnam’s stock market in 2025. A key reason is policy reform; as of November 2024, foreign investors are no longer required to pre-fund 100% of their trades, removing a major barrier to participation. While the stock market has faced recent headwinds, the government’s commitment to market upgrades remains firm, increasing confidence that these changes will deliver positive results.
Beyond finance, Vietnam’s push for clean energy, sustainable projects, and green standards is likely to draw investors in sectors such as property development and renewable energy, aligning well with global sustainability priorities.
Looking back: 2024’s capital flow trends
In 2024, M&A activity in the financial sector somewhat slowed, a natural pause after a flurry of large transactions between 2021 and 2023. Buyers have been taking time to integrate past acquisitions and better understand Vietnam’s business environment, while some sellers have been preparing their portfolios for future deals.
What to expect in 2024-2025
1. Finance, Securities, and Retail via the stock market
Vietnam’s stock market remains a familiar entry point for foreign capital. For example, Finland’s Pyn Elite Fund was highly active in 2024, focusing on banking and securities stocks such as STB and TPB. With the market’s potential reclassification in 2025, this investment channel is expected to expand further.
The appeal is evident in October 2024 alone, nearly 200 new trading codes were issued to foreign investors and foreign-owned firms.
2. Real estate: Big-ticket deals continue
The real estate sector is also primed for more cross-border transactions, thanks to legal changes under the 2024 Land Law and Housing Law. Simplified approval processes for local authorities should help speed up deals. Notable recent examples include:
- Gamuda Land (Malaysia) acquiring Tam Luc Real Estate for USD 315.8 million to develop a project in Ho Chi Minh City.
- Daewoo E&C investing nearly VND 10 trillion in a new urban area in Thai Binh province.
- Kim Oanh Group partnering with Japanese firms Sumitomo Forestry, Kumagai Gumi, and NTT Urban Development for a 50-hectare project in Binh Duong.
3. Domestic capital staying active
While overshadowed by foreign-led deals, local M&A activities remain steady. In 2024, BaF Vietnam expanded its livestock operations by acquiring stakes in several provincial companies, a move that strengthens its supply chain and positions it for international growth.
Overall outlook
With foreign investors poised to lead in both the stock market and major real estate projects, 2025 is a year of significant capital inflows into Vietnam. Government reforms, market upgrades, and regulatory streamlining in key sectors are creating an environment where both foreign and domestic players can find opportunities.
At PLF Consulting Canada, we’ve seen firsthand how the right business strategy can turn an investment opportunity into a long-term success story. Whether you’re navigating Vietnam’s M&A landscape for the first time or preparing for your next big move, having an experienced legal team by your side can make all the difference.
Let’s talk through your plans, explore the possibilities, and map out the next steps together, starting with a complimentary 30-minute consultation. It’s a chance to share your vision, ask the hard questions, and see how we can help you secure your place in Vietnam’s fast-evolving market.
