Vietnam’s Merger and Acquisition (M&A) Landscape in 2025: A Detailed Overview
Vietnam’s M&A market in the first ten months of 2025 saw a total disclosed deal value of US$2.3 billion. While this figure is substantial, the deal volume experienced a slight decrease to 218 transactions, continuing a trend of gradual decline since 2021. This shift indicates a more cautious approach to underwriting, enhanced due diligence processes, and more disciplined valuations, particularly within sectors facing pressure on profit margins or experiencing a slowdown in near-term demand.
Key Transactions Driving Market Value
The market value for the year was significantly influenced by several large-scale deals, including:
- Birch’s US$365 million acquisition of Eastern Real Estate.
- Hyosung’s US$277 million restructuring.
- AEON’s US$162 million buyout of Post and Telecommunication Finance Co., Ltd.
- Ares Management’s US$50 million acquisition of Medlatec Group.
These transactions collectively accounted for nearly US$1 billion of the total disclosed value. It’s worth noting that foreign and regional investors spearheaded these major deals, highlighting the ongoing cross-border interest in high-quality, asset-backed, and strategically vital platforms.
Average Deal Size Moderates
Following an unusually high average deal size of US$50.7 million in 2024, the figure decreased to US$29.4 million between January and October of 2025. This moderation suggests a return to a more typical distribution of deal sizes and a greater proportion of activity within the mid-market segment.
Sector Performance and Investment Trends
Deal activity became more evenly spread across various key sectors:
- Real Estate: Benefited from improved liquidity in the market.
- Healthcare: Supported by underlying structural undercapacity and growing demand.
- Materials and Industrials: Gained from ongoing realignments in supply chains.
- Consumer Sectors: Remained relatively subdued due to competitive pressures, uncertainties related to tariffs earlier in the year, and stricter enforcement of tax regulations.
Investor Landscape: Domestic vs. Foreign
Vietnamese investors remained significant players, contributing over 30% of the total disclosed deal value up to November. However, the gap between domestic and foreign investment has narrowed considerably. Singaporean investors accounted for approximately 27% of the total, followed by Japan (9%), the United States (7%), and South Korea (5%).
This trend underscores the fact that while domestic capital is still a cornerstone of Vietnam’s M&A environment, regional investors are becoming increasingly active in selectively pursuing larger transactions.
Investment Preferences by Country
- Singaporean and US Investors: Showed a preference for real estate, healthcare, and other cash-generating platforms, reflecting a strategy focused on scalable, asset-backed businesses with robust fundamentals.
- Japanese and South Korean Investors: Primarily targeted industrial, manufacturing, and materials-linked assets, aligning with their established supply chain presence in Vietnam.
Across all investor groups, sector selection has become more disciplined, with capital being directed towards sectors that offer transparency, resilience, and clear pathways to expansion.
Sector Contribution to Deal Value
A significant shift in sector contribution to overall deal value was observed:
- Real Estate (27%): Remained a significant driver.
- Materials (20%): Experienced substantial growth.
- Healthcare (10%): Gained prominence.
Together, these three sectors represented more than half of all transactions, highlighting investor preference for asset-backed businesses, essential upstream industries, and high-growth service platforms.
The rise of the materials sector was driven by large-scale transactions involving packaging, chemicals, and manufacturing inputs, resulting from portfolio realignments and regional supply chain consolidation. Healthcare also gained traction as investors concentrated on private hospitals, diagnostics, and tech-enabled healthcare services.
Consumer Sector Performance
Compared to the previous year, consumer sectors contributed less significantly, indicating a more selective investor approach, weaker discretionary spending earlier in the year, and stricter tax enforcement within the food and beverage and retail sectors.
Regulatory Reforms and Future Prospects
Reforms related to the Land Law, investment procedures, and the corporate bond market are expected to unlock additional real estate transactions and facilitate project restructuring. Investor interest within the healthcare sector is anticipated to remain strong, particularly in hospitals and diagnostics, driven by increasing middle-class demand and improved scalability across national networks.
Vietnam’s commitments under direct power purchase agreements (DPPAs) and renewable energy targets will continue to support dealmaking in the energy and utilities sector, despite its moderate contribution in recent years. The materials sector is likely to maintain its momentum as global supply chain shifts lead to increased manufacturing capacity in Vietnam.
Even with subdued consumer sector M&A activity in 2025, underlying demand fundamentals remain strong, and investor interest in healthcare, retail platforms, and tech-enabled services may resurface as macroeconomic stability improves.
Overall Market Assessment and Outlook for 2026
Vietnam’s M&A activity in 2025 reflects a market gradually finding its footing after a period of volatility. Dealmaking is characterized by increased selectivity, clearer regulatory signals, and the resurgence of larger, higher-conviction transactions. While overall volume is moderating, capital is being strategically deployed into assets with resilient demand profiles and strategic relevance.
The outlook for 2026 is cautiously optimistic. The implementation of revised land regulations, ongoing DPPA implementation, and continued emphasis on infrastructure, energy transition, and manufacturing upgrades are expected to create new opportunities for deals. Simultaneously, healthcare, education, logistics, and other essential services are poised to attract sustained attention as investors prioritize cash-generating, needs-driven sectors.
