20-6-2023 (HANOI) International investors are showing growing interest in increasing their investments in Vietnam, particularly in the realm of mergers and acquisitions (M&A), as reported by Vietnam News Agency on Tuesday.
The Vietnam Association of Realtors has observed a notable surge in the number of foreign investors with ample funds eyeing assets of Vietnamese property firms.
While these signs are still tentative, the renewed interest in M&A deals brings hope to local property developers who have been grappling with a cash crunch amidst challenging market conditions, according to the association’s latest market research.
Investors showing interest in M&A opportunities primarily hail from Singapore, South Korea, Taiwan (China), Japan, and Malaysia. Many of the potential deals are currently in the verification or negotiation stages, the association added.
Singapore’s Keppel Corporation, a conglomerate, has successfully acquired a 49% stake in two neighboring residential projects in Ho Chi Minh City, Vietnam’s southern business hub, from local property developer Khang Dien for a sum of 3.18 trillion Vietnamese dong (equivalent to 134 million US dollars).
Meanwhile, the luxurious Dolce by Wyndham Hanoi Golden Lake hotel, adorned in gold, has been on the market since March with a starting price of 250 million dollars. The owner, under significant financial strain, is compelled to sell assets to address liquidity issues, explained Chairman Nguyen Huu Duong.
Vietnam’s property crisis, which began last year, was triggered by troubles within some of the country’s major property groups, accused of issuing bonds illegally to raise funds.
Industry experts predict that the property market will remain sluggish until the end of 2024. In a worst-case scenario, the market slump could persist until 2025-2026.
During the first five months of this year, the number of new property companies opening plunged by 61.4% compared to the previous year, while over 550 companies were dissolved, representing a 30.4% increase, according to the Vietnam National Real Estate Association.
