(Investment & Securities) International investors are increasingly focusing on businesses with strong operational foundations, established market presence, advanced technological capabilities, and the potential to integrate more deeply into regional value chains.
Where is capital flowing?
Mergers and acquisitions (M&A) have become one of Ho Chi Minh City's key channels for attracting foreign investment, as international investors increasingly favor faster market entry through capital contributions, share acquisitions, and equity investments in existing businesses.
During the first five months of 2026, Ho Chi Minh City attracted more than USD 3.8 billion in foreign direct investment (FDI), representing a 20.3% increase compared to the same period last year. Notably, capital contributions, share purchases, and equity acquisitions continued to account for a significant proportion of total FDI inflows.
The city recorded 747 transactions involving foreign investors contributing capital, purchasing shares, or acquiring equity stakes in domestic enterprises, with a combined registered value of USD 2.32 billion.
These figures indicate that international investors are increasingly pursuing market-entry strategies by partnering with businesses that already possess established operational systems, customer bases, and scalable business models.
One of the largest transactions involved Indonesian investor Haryanto Sudarno Kusuma, who registered an investment of more than USD 1.7 billion in VLD Investment and Finance Joint Stock Company. Similarly, South Korea's Zeit Elevator Co., Ltd. invested USD 41.4 million in VGSI Elevator Co., Ltd.
According to data from Grant Thornton Vietnam, recent M&A activity has been concentrated in sectors with significant growth potential, including industrial manufacturing, technology, healthcare, energy, logistics, and tourism.
In May 2026 alone, industrial manufacturing led the market with four transactions, accounting for 17% of total deal volume. The technology sector followed with three transactions (13%), while healthcare, financial services, energy, and utilities each recorded two transactions. In terms of deal value, industrial manufacturing overwhelmingly dominated, reaching USD 542.8 million, equivalent to 77% of the month's total M&A value.
International capital is increasingly targeting growth equity, impact investing, and venture capital opportunities, with much of the investment originating from Singapore and the United Kingdom, rather than the large-scale private equity investments previously dominated by Japan and South Korea.
One notable healthcare transaction was LeapFrog Investments' investment in pharmacy chain Pharmacity.
The deal was structured through the issuance of convertible preference shares, reportedly valued at USD 50–80 million. The new capital is expected to strengthen Pharmacity's financial position, expand its retail network, and enhance its competitiveness within Vietnam's healthcare sector.
Similarly, Dawn Medical Technologies—a medical technology commercialization platform within the CBC Group ecosystem—completed the acquisition of a controlling stake in Pinnacle Health Medical Equipment Joint Stock Company. The transaction marks CBC Group's strategic expansion into Southeast Asia's medical technology market, particularly Vietnam.
In the hospitality real estate sector, Suchad Chiaranussati, founder of Singapore-based SC Capital Partners, completed the acquisition of Serenity Holding Co., Ltd., the operator of Vietnam's premium Fusion Hotel Group.
Following the acquisition, Fusion is expected to expand by integrating with Japan's HMJ and Indonesia's Topotels, creating a hospitality management platform overseeing approximately 16,000 rooms across multiple Asian markets.
Within the logistics sector, CJ Logistics Hong Kong Holdings Limited signed an agreement to acquire the remaining 49.1% stake in Gemadept Logistics Holding from Gemadept Corporation. Upon completion, the South Korean company will own 100% of the logistics business, strengthening operational control and integrating its Vietnamese operations into its broader regional network.
In sustainable industrial manufacturing, Norwegian development finance institution Norfund invested USD 4 million in Circular Plastics Vietnam through its Singapore-based parent company, Circular Plastics International. The investment will support the expansion of a plastic recycling facility in southern Vietnam, increasing annual production capacity to 31,000 tonnes of PET flakes and 14,000 tonnes of food-grade recycled PET (rPET) pellets.
A New M&A Cycle
According to industry experts, current market developments suggest that M&A activity is shifting away from transactions driven primarily by cost advantages toward deals focused on building long-term competitive capabilities.
Beyond capital investment, the next generation of M&A transactions is expected to facilitate technology transfer, management expertise, and stronger integration of Vietnamese businesses into global networks.
Over the past five months, Ho Chi Minh City attracted more than USD 3.8 billion in foreign investment, up 20.3% year-on-year, with capital contributions and equity acquisitions continuing to represent a substantial share.
Sectors including technology, industrial manufacturing, healthcare, logistics, and energy are expected to remain attractive, reflecting ongoing global supply chain restructuring and increasing demand for sustainable development.
According to Tran Trong Tuyen, Deputy Director of the Ho Chi Minh City Department of Science and Technology, Vietnam—and Ho Chi Minh City in particular—is entering a new stage of development, implementing strategic initiatives centered on science and technology, innovation, digital transformation, and the growing role of the private sector.
In this context, mobilizing private capital for innovation—particularly through venture capital, growth equity, and M&A—has become increasingly important in fostering high-growth technology companies capable of scaling rapidly and enhancing their competitiveness in regional and international markets.
Meanwhile, Le Han Tue Lam, Chief Executive Officer of VinVentures, noted that Vietnam's M&A market over the past three decades demonstrates that major transaction cycles have not been driven by short-term market sentiment, but rather by structural factors such as government policy, capital accessibility, legal frameworks, transaction infrastructure, and investors' execution capabilities.
Lam observed that the supporting conditions for Vietnam's M&A market have improved considerably. The recovery of the corporate bond market, easing credit pressures, stabilizing non-performing loans, and improved equity market valuations have all contributed to a more favorable transaction environment.
However, she emphasized that the key determinant of the next M&A boom will be the availability of high-quality deal flow. Potential transaction opportunities are emerging from various sources, including state-owned enterprises undergoing restructuring, private equity funds reaching their divestment phase, and privately owned businesses seeking strategic partners for their next stage of growth.
Looking ahead, technology is expected to become one of the primary drivers of Vietnam's M&A market. Maxx Tsai, Director of Strategic Corporate Investment and M&A at Advantech, believes Vietnam has significant opportunities in Internet of Things (IoT), artificial intelligence (AI), and semiconductor technologies.
According to Tsai, Vietnam's investment trajectory resembles China's earlier development path—shifting from investments focused on consumer sectors and internet businesses toward core technologies. The establishment of research and development (R&D) centers by major global technology companies, combined with Vietnam's growing pool of highly skilled engineering talent, is expected to lay the foundation for a new wave of technology-focused M&A activity over the next five to ten years.
Source: Dau Tu Chung Khoan