Reorganizing the M&A "game", shaping new opportunities

Real estate is the sector with the highest proportion of M&A activities.

Domestic investors play the main driving role

Vietnam's M&A market shows stability and selectivity, with large-scale deals and the participation of regional strategic investors - factors that effectively keep the market in rhythm.

In the 10 months of 2025, Vietnam recorded about 220 M&A deals, with a total transaction value of 2.3 billion USD, the average value per deal was 29.4 million USD, down from the peak of 50.7 million USD in 2024. This reflects a cautious trend in appraisal, focusing on strategic and sustainable assets, rather than sheer scale.

This also shows that investors tend to be more cautious in assessing risks and evaluating transactions, as well as giving more rigorous valuations, especially in industries with pressure on profit margins or slow demand growth in the short term.

This year's transaction value mainly comes from large deals, with a total value of about 1 billion USD, including Birch's acquisition of Phuong Dong Real Estate (365 million USD); Hyosung's restructuring deal worth 277 million USD; AEON's acquisition of Post and Telecommunication Finance Company Limited (PTF) worth 162 million USD...

Notably, these deals were all led by regional and foreign investors, demonstrating the enduring appeal of quality and strategic assets in the Vietnamese market.

After a rare high average deal size of $50.7 million in 2024, the average deal size declines to $29.4 million in the 10 months of 2025, reflecting the return of more familiar transaction levels and buoyant activity in the mid-market segment.

By the end of the first 10 months of 2025, the number of M&A transactions was about 220; the total transaction value was 2.3 billion USD, the average value was 29.4 million USD/transaction. The largest transaction was 365 million USD.

The sectors that attract the most capital for M&A are real estate with 27%, thanks to improved liquidity. Materials increased thanks to the trend of shifting supply chains. Healthcare received attention thanks to increased demand from the middle class. According to KPMG, these three sectors accounted for more than half of the total value of M&A transactions, showing the trend of repositioning capital flows into assets with real value and sustainable growth potential.

M&A activity was evenly distributed across major sectors, with real estate being boosted by improved liquidity, healthcare being boosted, and materials and industrials being focused on supply chain shifts. In contrast, the consumer sector remained sluggish due to competitive pressure, tariff fluctuations and tightening tax compliance.

A notable point is that Vietnamese investors continue to lead the M&A market, accounting for more than 30% of the total announced transaction value (total value of 712 million USD). The next positions are Singapore with 613 million USD; Japan with 214 million USD; the US and South Korea with 150 and 122 million USD respectively. While domestic investors play a pivotal role, foreign investors such as Singapore, the US and South Korea continue to be in the top 5 largest foreign investors in the Vietnamese M&A market. This is evidence of the sustainable confidence of investors in the region in Vietnam's medium and long-term growth prospects.

It is predicted that the next M&A cycle will not only be a story of transaction volume or scale, but also of profound changes in industry structure and impact on the competitiveness of the Vietnamese economy . Photo : Le Toan. Graphics: Dan Nguyen

M&A tastes are increasingly diverse

M&A transactions recorded a significant change in the contribution structure by industry, with real estate (27%); materials (20%); healthcare (10%) becoming the three largest value-contributing industries. These three industries alone accounted for more than 50% of the total transaction value, reflecting investors' preference for businesses with secured assets, essential input manufacturing industries and high-growth service platforms.

The presence of Vietnamese, Singaporean and American investors in real estate, healthcare and other cash flow-generating sectors reflects a preference for scalable, asset-backed business models with solid fundamentals. A typical example is Bach Duong Real Estate Trading Company Limited acquiring Phuong Dong Real Estate Investment and Trading Company Limited (under Masterise Group Real Estate Corporation) - one of the leading luxury real estate developers in Vietnam, for a total value of 365 million USD. This is considered the largest deal in the real estate sector. Hyosung Chemical divested 49% of its capital in Hyosung Vina, earning 277 million USD.

In the healthcare sector, Ares Management Corporation invested 150 million USD to buy 30% of shares in Medlatec Group Trading and Services Joint Stock Company - one of the largest private healthcare systems in Vietnam; AEON acquired Post and Telecommunication Finance Company (PTF) from SeABank for 162 million USD. In addition, a number of large-scale transactions have been announced and are expected to be completed in 2026 such as: JTA Investment Qatar invested 1 billion USD in VinFast, or International Media Acquisition Corp merged with Vietnam Biofuel Enterprise (valued at 1 billion USD)...

Trends shaping the M&A market in 2026

From the current picture, KPMG points out some notable trends shaping the Vietnamese M&A market in 2026. In particular, the highlight is that M&A capital flows are shifting to areas with clear demand, sustainable business performance and a transparent growth roadmap.

On that basis, 3 areas are assessed to have great potential including:

First is healthcare (hospitals, diagnostics, specialized clinics). With a population of over 100 million and more and more people joining the middle class, healthcare facilities still need to be improved, mainly concentrated in large cities. In addition, the quality of human resources and healthcare services in Vietnam is increasingly affirmed, attracting a significant number of visitors from some neighboring countries such as Cambodia, Laos... showing that this is a field with a lot of potential.

Second is the education and training sector. With a young population and the need to upgrade skills to adapt to change, this sector also has a lot of potential.

Third, B2B and essential services such as logistics, waste treatment, ESG energy, industrial services, consumer finance, etc. will continue to attract attention but will be quite selective.

One common point is the trend of "looking for quality", investors prioritize businesses with transparent governance, clear finances, and sustainable profits, even if the scale is not large.

High interest rates, coupled with low stock valuations, have tilted the negotiation balance of deals in favor of the buyer, leading to a significant drop in business valuations compared to 2021-2022. Deals will increasingly use risk-sharing mechanisms such as performance-based payments; seller financing requirements and more defensive financial structures. The need for deeper due diligence on cash flow sustainability and off-balance sheet financial obligations during negotiations is also a factor that KPMG experts warn will increase in 2026.

The M&A market in 2026 is expected to accelerate thanks to policy support factors such as the revised Land Law paving the way for many large real estate transactions; the direct power purchase mechanism (DPPA) promoting renewable energy investment; focus on healthcare, education, infrastructure and manufacturing, and exports thanks to domestic demand and the national development roadmap.

In particular, as the legal framework becomes more transparent and market liquidity improves, Vietnam is gradually asserting its position as one of the most attractive M&A destinations in Southeast Asia, both in the medium and long term.

Although the total number of M&A deals in Vietnam continues to decline in quantity, the growth in quality and transaction value shows that investors are prioritizing strategic assets that bring long-term value. Focusing on quality real estate, private healthcare, raw material manufacturing and business models with sustainable foundations is an irreversible trend.

From million-dollar deals in 2025 to mergers and investments planned for 2026, Vietnam is setting up a “new M&A cycle”: more selective, but opening up greater opportunities, especially for investors with long-term vision and clear strategies.

Source: https://baodautu.vn/sap-xep-lai-cuoc-choi-ma-dinh-hinh-co-hoi-moi-d453598.html