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Private Equity

Capturing new waves of investment - A call for change

PRIVATE EQUITY REPORT Q2, 2015

Capturing new waves of investment - A call for change

In this 13th survey on the Private Equity sector carried out in the second quarter of 2015, respondents have shown a significant increase in their positive views towards Vietnam’s economy. There have been encouraging improvements compared to the prior survey results, with 86% of the respondents believing that investment activities will increase significantly in the next 12 months.

It is believed that the recovery, together with numerous opportunities stemming from free trade agreements under negotiation and ratification, M&A deal flow will beat the 2012’s record of US$5.2 billion, and will reach US$20 billion between 2015 and 2018.

Oil and Gas, Food & Beverage, and Clean Tech are the leading sectors which were seen as especially attractive for investment, according to our respondents’ opinions.

Regarding the critical success factors, “Sector specific opportunities” is seen as critical to source and complete a good deal. “Difference in valuation expectation” continued to be the most significant factor contributing to deal failure.

With an optimistic view of Vietnam’s economy, we see that many PE investors are paying more attention to Vietnam. They are ready to put additional resources in the market with an expectation of better long-term returns.