An attractive destination for international investors.

As a dynamic economic powerhouse, Ho Chi Minh City has become a "magnet" attracting foreign investment. (Photo by THE ANH)

Creating a strong attraction for foreign capital.

In 2025, despite facing numerous challenges in Southeast Asia such as tightening financial markets and geopolitical risks, Vietnam maintained stability thanks to highly selective transactions. According to data from KPMG (one of the world's largest auditing firms), in the first 10 months of 2025, Vietnam recorded 218 transactions with a total value of US$2.3 billion.

Notably, large-scale transactions contributed nearly US$1 billion to the total transaction value, largely from international investors. This demonstrates the strong appeal of high-quality and stable assets in Vietnam.

After peaking in 2024, the average transaction size returned to US$29.4 million, bringing the market back to a more balanced and vibrant state in the mid-range segment. Domestic capital flows continue to be a crucial driving force, accounting for over 30% of total transaction value, while foreign capital maintains a strong presence, particularly from Singapore, Japan, the US, and South Korea – leading many of the largest deals this year.

Notable deals in 2025 are mainly concentrated in real estate, materials, finance, and healthcare. Several large deals worth US$1-1.5 billion are in the final stages of completion, expected to provide a new impetus for the 2026-2027 period. In particular, the strong increase in capital contributions and share purchases from foreign investors shows that M&A is becoming an increasingly attractive channel for capital mobilization. According to the Ministry of Finance, in the first 11 months of 2025, total registered foreign investment reached US$33.69 billion, an increase of 7.4%. In particular, capital contributions and share purchases reached over US$6.117 billion, a 50.7% increase compared to the same period in 2024.

Mr. Tran Quoc Phuong, Deputy Minister of Finance, stated that Vietnam in general, and the Vietnamese M&A market in particular, have always been considered by foreign investors as a safe, attractive, and promising market. Both domestic and foreign investors continue to place great trust in the growth potential of the Vietnamese economy, as well as the potential and opportunities of Vietnam as an investment destination. The Deputy Minister affirmed: “I always believe that Vietnam will maintain its top position in the region in attracting foreign investment, especially in high-tech and cutting-edge technologies such as semiconductors and artificial intelligence (AI)…

In particular, mergers and acquisitions (M&A) continue to be an important channel for capital flow. Foreign investors from the US, Europe, and even traditional Vietnamese investors from Japan, South Korea, Singapore, Thailand… are still very interested in investing in Vietnam through this form.”
Widespread opportunities for growth in the M&A market.

Experts assess the outlook for Vietnam's M&A market in 2026 as more positive thanks to key drivers such as the amended Land Law, streamlined investment procedures; a more transparent bond market; the Direct Power Purchase Agreement (DPPA) expanding opportunities for renewable energy; strong investment trends in hospitals, diagnostics, and healthcare technology; and the continued supply chain shift attracting capital into materials, industry, and export manufacturing.

In addition, medium-term demand in the healthcare, retail, logistics, technology, and essential services sectors continues to grow thanks to a stable macroeconomic foundation. From a business perspective, Mr. Dang Van Thanh, Chairman of Thanh Thanh Cong Group (TTC Group), mentioned that Vietnam is currently attracting many factors for international capital, from its population of 100 million, a market with significant growth potential, to an increasingly完善 policy system.

With the synergy of Resolution No. 68-NQ/TW of the Politburo, along with the effectiveness of the Land Law and the Housing Law, Vietnam has created a favorable foundation to strongly attract foreign investment funds. According to the leaders of TTC Group, in the past year, the Government has demonstrated great determination through many measures to improve the investment environment. These include reviewing and removing bottlenecks to facilitate the flow of foreign capital into Vietnam; improving the quality of information disclosure and corporate governance standards, thereby increasing the attractiveness of Vietnamese businesses in the eyes of international investors.

Despite many opportunities, the M&A market faces many challenges. According to Mr. Dinh The Anh, Head of Corporate Finance, KPMG Vietnam, the biggest difference in current M&A transactions lies in valuation expectations. In a volatile market, determining a "fair price" becomes difficult, widening the gap between buyers and sellers, prolonging negotiations, and making order matching challenging.

To overcome this obstacle, Mr. Dinh The Anh advises businesses to convince investors with actual monthly growth data over 24-36 months, from expansion speed and customer acquisition costs to the efficiency of each business segment. When the figures are convincing and clearly reflect the growth trend, the likelihood of reaching an agreed price is higher.

Mr. Tamotsu Majima, Senior Director of Recof Corporation (Japan), said: "Japanese investors always pursue a long-term strategic vision. Once they make a decision, they commit to seeing it through and rarely withdraw from an investment." According to Mr. Majima, Japanese capital flows into Vietnam are highly diversified. Vietnam still has significant potential to attract FDI from Japan. Currently, Thailand has around 6,000 Japanese businesses operating, while Vietnam has just over 2,000, indicating considerable potential for expansion.

According to Nhan Dan Newspaper