New M&A Wave in Vietnam

Real estate continues to heat up

According to the General Statistics Office (Ministry of Finance), the total FDI registered in Vietnam during the first two months of the year reached nearly 6.9 billion USD, marking an impressive year-on-year increase of 35.5%. Of the total newly-registered FDI capital of 2.19 billion USD, the real estate sector accounted for 16.9%, equivalent to 371.5 million USD, retaining the second-highest place in attracting foreign investment.

Experts assess that many foreign investors will continue to boost M&A activities in the real estate market through a series of project acquisitions. This trend is prompting domestic investors to quickly join the M&A race. As a result, 2025 is expected to see many large-scale transfer deals in various regions and market segments.

Nguyen Van Dinh, Vice Chairman of the Vietnam National Real Estate Association (VNREA), evaluates that the recently effective laws related to investment, business activities, and the real estate market, will enable M&A transactions to be more smooth. As for transfer projects in the market, many difficulties for both sellers and buyers will be more easily resolved compared to the previous period.

Dinh said, the real estate market in the upcoming period will be a playground for truly capable investors. Weak investors will be eliminated through a selection process. In particular, the 2025-2026 period is expected to see a more dynamic real estate M&A market with a variety of high-quality products.

Nguyen Cong Ai, Deputy General Director of KPMG Vietnam, also noted that the Vietnamese M&A market in 2025 is expected to flourish with impressive figures. Key sectors such as real estate, manufacturing, information technology, and consumer goods still have strong growth potential, attracting interest from both strategic investors.

M&A capital is expected to pour significantly into real estate, healthcare, and education in 2025 - Illustrative image

This outcome is also supported by government policies. Additionally, the investment trend is shifting towards technology sectors, such as AI and technology-driven services, which are expected to account for a significant proportion of M&A transactions starting from 2025 onwards.

Similarly, Trang Le, CEO of JLL Vietnam, predicts a major M&A wave ahead, as many of JLL Vietnam’s foreign partners are currently observing projects and businesses in the Vietnamese market. She added, “The impact of the global economy makes Vietnam’s office and industrial real estate market more attractive, potentially boosting the development of the commercial real estate segment.”

In fact, the market has already witnessed a series of high-profile M&A deals over the past time. A typical example is Kim Oanh Group’s partnership with four Japanese partners: Sumitomo Forestry, Kugami Gumi, NTT Urban Development, and AEON, to jointly develop the One World project in Binh Duong Province. Kim Oanh Group received an initial investment of 9 trillion VND from this deal to develop the project, which spans nearly 50 hectares with a total investment of more than 1 billion USD. Also in Binh Duong, Becamex IDC also transferred a housing project worth 553 million USD to Sycamore Limited, a subsidiary of Singapore’s CapitaLand Group.

Deals also seen in healthcare and education sectors

In addition to real estate, healthcare and education are also predicted to experience strong M&A activity. The “Global M&A Trends” report from PwC indicates that in 2025, Vietnam’s healthcare M&A market is expected to be vibrant, primarily due to the growing demand for high-quality healthcare services and the increase in the middle class people. Private hospitals and specialized healthcare facilities, especially in the fields of ophthalmology and oncology, will become focal points for M&A activities.

Simultaneously, with strong policies encouraging foreign investment without restrictions on investment in educational institutions, the education sector’s M&A market in Vietnam is becoming increasingly attractive. “M&A activities in 2025 are expected to be bustling, driven by policies encouraging investment and the growing demand for private education. Strategic partners and investors in higher education and vocational training will enhance education quality and infrastructure. Government support policies will create a favorable environment for both domestic and foreign investors, and facilitate M&A activities,” PwC’s report noted.

Ong Tiong Hooi, Transaction Services Leader, PwC Vietnam, shared that entering 2025, global M&A activities are recovering strongly, driven by positive signals from the economy and strategic buyout deals. “This trend is also reflected in Vietnam, where we witness increasing deals across various sectors. Domestic companies are taking an active role and leading high-value deals, while foreign investors are also returning to the market, particularly focusing on two potential sectors: healthcare and education. To succeed in this dynamic market, investors need a deep understanding of trends in separate sectors and a strategic focus on creating core values. Negotiators must always be wise, keep their eyes on valuations, interest rates, and geopolitical factors to seize new opportunities,” Ong Tiong Hooi recommended.