Enterprise

Vietnam’s Emerging Position in Global Investment and M&A Trends

The foundational elements—legal reforms, sustainable development initiatives driven by domestic entrepreneurs, clean energy strategies, and a vibrant M&A wave—are collectively propelling Vietnam closer to becoming ASEAN’s new capital hub.

Administrator

11 December, 2025

As the global economy enters a phase of profound restructuring, capital flows are shifting dramatically towards destinations that offer both political stability and long-term growth potential. Vietnam, once perceived as a “frontier market” by many international investors, is gradually establishing a “new position” as a magnet for capital and a critical link in regional and global value chains.

At the Vietnam M&A Forum 2025 held on December 9th in Ho Chi Minh City, Mr. Khanh Vu, CEO of VinaCapital Vietnam Opportunity Fund, shared insights on the COVID-19 pandemic and post-recovery period. The market faced significant uncertainties, from supply chain disruptions and fluctuating demand to challenges in valuation, forcing investors, particularly funds, to incorporate additional risk factors into their models. The near-freeze in IPOs and divestments has reshaped capital allocation strategies.

However, the second half of 2025 witnessed a notable shift. Changes in legal frameworks, policy stability, Resolution 68, the upgrade of Vietnam’s stock market by FTSE Russell, and monetary policy adjustments have significantly boosted foreign investor confidence. Mr. Khanh Vu remarked, “Vietnam is proving that we are on the right track, meeting expectations for transparency, certainty, and predictability—key factors for international capital.” Not only has the number of deals increased, but the capital structure has also diversified, spreading into retail, healthcare, and infrastructure, rather than solely focusing on technology.

According to Mr. Khanh, Vietnam’s new cycle is not just about economic growth but also about the maturity of its capital market, particularly in the medium term, which is essential for attracting large-scale capital.

Representing the regulatory body, Mr. Bui Hoang Hai, Vice Chairman of the State Securities Commission, stated, “We have comprehensively reviewed all legal regulations related to the industry to ensure Vietnam remains an attractive destination for international capital.”

In 2026, Vietnam’s stock market is on the verge of meeting technical criteria for an upgrade, a factor increasingly attracting global active funds. Notably, legal reforms are focusing on removing barriers for foreign investors. The elimination of transaction code registration for indirect investors is a significant step. Additionally, addressing the Foreign Ownership Limit (FOL) is a priority.

The goal is to thoroughly review and remove or reduce limits that are no longer appropriate, retaining only those necessary for specific or sensitive sectors. The SSC and the Ministry of Finance also encourage companies to review their registered industries to reduce those without business activities, thereby expanding the space for foreign capital.

The Vietnam M&A Forum 2025 took place in Ho Chi Minh City. Photo: TV

The shift in the legal environment is not just about the quantity of deals but also the quality and standards of M&A transactions. According to Ms. Vo Ha Duyen, Chairwoman of VILAF Law Firm, reforms are being driven to align with international practices, particularly in protecting shareholder rights, enhancing board accountability, and improving information transparency.

Furthermore, Vietnam is expanding the recognition of international credit rating organizations, not limited to those licensed by the Ministry of Finance, but also opening up to entities like S&P and Fitch. This move aims to deepen integration with the international capital market and enhance the credibility of credit ratings for investors.

From the perspective of domestic entrepreneurs, Mr. Dang Van Thanh observes a shift from a purely growth-oriented model to one that incorporates social and environmental responsibilities. He emphasized, “The government has committed to achieving Net Zero by 2050, marking a significant transformation. Vietnam may be a latecomer in clean energy, but its development speed is impressive and will be a dominant trend for 2026-2030.”

According to the Chairman of TTC Group, Vietnam’s advantages—a coastline over 3,500 km long, a strategic geographical location, and genuine energy demand from industrialization—provide a natural foundation for renewable energy development. M&A has become an indispensable tool for attracting clean capital and technology. The trend of capital shifting as investment funds increasingly tie ESG criteria to their allocation decisions.

Mr. Thanh stressed that M&A is the responsibility of Vietnamese entrepreneurs, requiring the right timing to ensure investor interests and open up development space, maximizing the advantages of a developing nation with a robust domestic market.

Representing Japanese investors, Mr. Tamotsu Majima, Senior Director of RECOF Corporation, noted that Japanese companies approach M&A with a long-term vision and cautious processes but are committed to sustainable partnerships once decisions are made. Recent deals like Kokuyo’s acquisition of Thien Long and Hoshizaki’s collaboration with Searefico demonstrate Vietnam’s growing importance in Japanese companies’ Asian production and consumption networks.

With high growth rates, advantages from multiple FTAs, and a favorable geopolitical position, Mr. Tamotsu Majima believes Vietnam remains the most attractive destination in Southeast Asia for M&A capital. However, competition for investment is intensifying as South Korea, Singapore, Thailand, the US, and India increase their presence in Vietnam. Challenges persist in legal processes, particularly in economic concentration control and securities regulations. Nonetheless, with Vietnamese companies beginning to invest abroad, Vietnam is moving closer to becoming an ASEAN M&A hub in the coming years.

Tien Vu

– 23:13 09/12/2025