FOREIGN CAPITAL SEEKS STRONGER FOOTHOLD IN VIỆT NAM THROUGH M&A

Foreign investors carried out 1,815 capital contribution and share purchase transactions in Việt Nam in the first seven months of 2026, with total capital exceeding $6.5 billion. While the number of transactions fell 8.4 per cent year-on-year, their value rose 61.6 per cent.

Ciputra is one of the landmark projects representing the presence of Indonesian investment in Việt Nam since the first wave of FDI. — Photo bietthu-ciputra.vn

HÀ NỘI — Rather than investing from scratch to build new production facilities, many foreign investors are choosing to acquire stakes in existing Vietnamese companies as a faster way to establish a foothold in the market. This has kept capital contributions, share purchases and mergers and acquisitions (M&A) active.

Indonesian investor makes major move

Indonesia has made a striking jump among foreign investors in Việt Nam in the first seven months of 2026.

The Southeast Asian country ranked sixth among countries and territories investing in Việt Nam, with more than US$1.75 billion in registered capital, up 29.25 per cent year-on-year, or more than 293 times the figure recorded in the same period last year.

Indonesia ranked 36th a year earlier, with only $11.8 million invested in Việt Nam.

Of the total Indonesian investment in the first seven months, only $150,000 came from nine newly registered projects, while more than $1.75 billion was invested through eight capital contribution and share purchase deals.

The Foreign Investment Agency (FIA) under the Ministry of Finance did not identify the specific deals. However, based on foreign investment reports since the beginning of the year, the bulk of the investment was likely related to a deal worth more than $1.74 billion in March.

The deal could be the largest M&A transaction in Việt Nam in the first seven months of the year, although no detailed information has been publicly released.

The agency said the surge shows that Indonesian businesses are using capital contributions and share purchases to expand their presence in Việt Nam quickly, gaining access to existing customers, distribution networks and legal structures without having to build operations from the ground up.

M&A market remains active

Indonesia is not alone in using this approach.

Foreign investors carried out 1,815 capital contribution and share purchase transactions in Việt Nam in the first seven months of 2026, with total capital exceeding $6.5 billion. While the number of transactions fell 8.4 per cent year-on-year, their value rose 61.6 per cent.

The FIA said the figures show that foreign investors continue to seek opportunities through existing businesses.

The decline in the number of transactions but sharp increase in their value also indicates a preference for larger deals or assets with stronger strategic positions, allowing investors to quickly establish a foothold in the Vietnamese market.

Besides Indonesia, China was a major investor through this channel, with 494 transactions worth $1.63 billion. Singapore ranked third, with 166 transactions valued at more than $1 billion.

HCM City remained the leading destination for this type of investment with 1,224 transactions worth more than $3.16 billion. Hà Nội followed with 229 transactions worth over $2.63 billion.

Capital contributions and share purchases accounted for more than 30 per cent of total foreign investment in HCM City and about 70 per cent of the $3.62 billion attracted by Hà Nội.

The strong performance of the two major economic hubs reflects their appeal to investors seeking established businesses, promising projects and high growth potential.

Grant Thornton recorded 31 M&A deals in Việt Nam in July, with disclosed transaction values totaling an estimated $228 million. In the first seven months, nearly 160 deals were recorded, worth around $2.7 billion. The actual value is likely higher because some deals did not disclose their financial terms.

Recent transactions illustrate how foreign investors are using M&A to strengthen their position in Việt Nam.

They include Japan's Kamigumi Co., Ltd. acquiring a 50 per cent stake in CLK Cold Storage Co., Ltd. from Kawasaki Kisen Kaisha, and Grab announcing a strategic investment in EBOOST, a provider of smart charging solutions for electric vehicles.

Singapore-based fintech group M-DAQ Global also agreed to acquire METech, a major shareholder of licensed Vietnamese payment service provider PayME. The deal gives M-DAQ access to licensed payment infrastructure, enabling it to process domestic collections and payments in Vietnamese đồng directly and improve control over key cross-border payment channels.

Consumer goods, manufacturing, finance and banking, as well as technology and energy, are among the sectors attracting foreign investors.

However, PwC has noted that the rapid development of artificial intelligence is reshaping investment priorities. Investors are expected to become more selective, paying greater attention to business quality, strategic fit and long-term value creation. — VNA/VNS

Source: VNS