Mergers and acquisitions activities in 2023 will reach more than 4.4 billion USD

After a boom period, the global mergers and acquisitions (M&A) market is cooling down. Data from KPMG Vietnam shows that in the first 10 months of 2023, the Vietnamese M&A market had 265 transactions, worth more than 4.4 billion USD, down 23% compared to the same period last year. The average value of the deals reached 54.5 million USD, showing that investors are shifting to strategic investments that require more financial resources.

Hoạt động mua bán sáp nhập doanh nghiệp năm 2023 đạt hơn 4,4 tỉ USD - Ảnh 1. — Vietnam's M&A market in the first 10 months of 2023 reached 4.4 billion USD

The Southeast Asian initial public offering (IPO) market has also shown stability, but the total amount of capital raised by IPOs has reached an eight-year low. According to data from Deloitte (as of November 15, 2023), companies in Southeast Asia have raised about $5.5 billion through IPOs so far this year, down from $7.6 billion raised from 163 IPOs in all of 2022. Of these, Vietnam has only had three IPO listings raising about $7 million.

M&A activities in the technology sector with the wave of digital transformation, retail, and consumer goods are still vibrant. Meanwhile, the real estate, green energy, and utilities sectors will soon be vibrant again with the increasing participation of Vietnamese enterprises as buyers.

Mr. Tran Duy Dong, Deputy Minister of Planning and Investment , said that the world economy continues to grow slowly. Global trade is recovering slowly, with potential instability in supply, especially for strategic goods such as energy, food, and semiconductors. The pressure of competition in attracting investment is increasing, especially with the global minimum tax to be applied in some countries from 2024, which is forecast to potentially lead to the diversion of foreign investment capital flows, including capital flows through M&A channels.

Many survey results from prestigious organizations around the world show that global M&A activities in 2023 are not going well. However, the Vietnamese M&A market still has many opportunities and prospects thanks to increasingly consolidated fundamental factors. 2023 marks the halfway point of Vietnam's implementation of the 5-year socio -economic development plan 2021 - 2025. Halfway through, despite being adversely affected by unforeseen and unprecedented factors, Vietnam has steadfastly overcome difficulties and challenges and achieved many important results of the 5-year socio-economic development plan 2021 - 2025...

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