Vietnam’s M&A Market Rebounds in December 2023

Consumer‑focused transactions propelled Vietnam’s M&A activity to 31 deals worth $1.3 billion in December, marking a notable rebound.

Key Takeaways

• 31 announced M&A deals in December, total disclosed/estimated value ≈ $1.3 billion (Grant Thornton).
• The consumer sector topped both deal count and value, driven by strategic expansion rather than short‑term finance.
• Foreign investors, especially from Japan and Thailand, remained the main catalysts.

Top Consumer‑Sector Transactions

Two headline deals illustrate the consumer‑driven momentum:

Kokuyo’s acquisition of Thien Long Group

Kokuyo Corporation (Japan) agreed to purchase a 65.01 % stake in Thien Long Group for an estimated $185 million. The transaction is staged in two phases: first, Kokuyo will acquire the 47 % held by Thien Long An Thinh Investment JSC; second, it will launch a public tender offer for an additional 18.2 % from other shareholders. Kokuyo, a long‑time player in Vietnam’s stationery market, expects the deal to accelerate its market share in notebooks, pens and educational supplies.

Fraser & Neave’s additional stake in Vinamilk

Thailand‑based Fraser & Neave (F&N) increased its holding in Vietnam’s leading dairy producer Vinamilk, investing roughly $228 million for the extra shares. The move underscores the strategic importance of Vietnam’s fast‑growing consumer food segment.

Strategic Deals Across Sectors

Retail – MM Mega Market Vietnam

The TTC Group of Thailand transferred its MM Mega Market Vietnam retail chain to a related entity for an estimated $715 million, reflecting a large‑scale corporate restructuring.

Real Estate – Ngan Hiep’s SEA Stake

Ngan Hiep Real Estate (a Novaland subsidiary) acquired 24.03 % of SEA (Vietnam National Seaproducts Corp.) for about $53 million, becoming a major shareholder. Simultaneously, Redwood Investment raised its stake to 8.44 %.

Engineering – Daikin’s acquisition of Anh Nguyen Engineering

Daikin Industries (Japan), via Daikin Air Conditioning (Vietnam) JSC, signed an agreement to acquire Anh Nguyen Engineering Trading and Services JSC, a specialist in Building Management Systems. The deal aims to bolster Daikin’s integrated HVAC‑smart building solutions, aligning with Vietnam’s carbon‑neutrality goal for 2050. Financial terms were not disclosed.

Infrastructure – Duc Long Gia Lai’s divestment

Duc Long Gia Lai Group agreed to sell its 71 % stake in the Duc Long Dak Nong BOT scheme to Alpha Seven Group for roughly $20 million.

Utilities – Vietnam Construction & Import‑Export JSC

The company secured a 98 % equity stake in Vietnam Water and Environment Investment Corp. via a public auction, valued at about $47.3 million.

Healthcare – DKSH’s purchase of Biomedic Science Material

Swiss‑based DKSH Group acquired Biomedic Science Material JSC, a Hanoi distributor of diagnostic equipment. Biomedic reported annual revenue of $15.25 million and a recurring revenue model, though the purchase price was undisclosed.

Entertainment – Sony Music’s strategic stake in 1Label

Sony Music Entertainment Hong Kong entered a strategic investment with YeaH1 Group, taking a 49 % voting stake in 1Label JSC, a music production and distribution platform.

Foreign Investor Influence

Japanese and Thai capital continued to dominate December’s M&A landscape, providing both financial muscle and strategic expertise. Their involvement highlights Vietnam’s attractiveness as a stable, growth‑oriented market amid a global slowdown in deal activity.

Outlook for 2024

Analysts at Grant Thornton anticipate that the consumer‑driven momentum will persist into 2024, especially as multinational firms seek to capture Vietnam’s expanding middle class. Companies that align M&A strategies with long‑term market positioning rather than short‑term financial engineering are likely to achieve sustainable growth.

For investors and corporate strategists, monitoring sector‑specific deal pipelines—particularly in consumer goods, retail, and sustainable engineering—will be crucial to capitalising on Vietnam’s M&A resurgence.