PLF Law Firm forecast 2025 M&A Finance – Banking in Vietnam

On December 9, 2024, Mr. Cong Thanh Bui – Managing Partner at PLF Law Firm, had the chance to share with Vietnam Investment Review (VIR) about upcoming trends in Mergers & Acquisitions (M&A) within Vietnam’s Financial – Banking sector for 2025. 

1. The opportunity to share about M&A of one of Vietnam’s key economic sectors

PLF Law Firm shared essential perspectives on the potential for M&A in the Finance – Banking sector in 2025, which VIR’s website featured in the Investment section. The article is among many published pieces following the 16th Vietnam M&A Forum, themed “A Blossoming Market” which aims to guide businesses in navigating and capitalizing on emerging M&A trends for the upcoming year. 

In the article, Mr. Thanh emphasizes that M&A activities in Vietnam are gradually regaining momentum towards the end of 2024 and early 2025, with several noteworthy deals taking place in key industries such as manufacturing and real estate. In the Finance – Banking sector, M&A activities in 2024 remain active, with most transactions involving the merger of domestic credit institutions, of which larger banks are forced to receive transfer of weaker institutions as assigned by the State Bank of Vietnam. 

2. Key insights: The Need for Reform to Drive Cross-Border M&A

Looking ahead to 2025, Mr. Thanh predicts that the dominant trend will continue the merger of domestic financial institutions until the Vietnamese banking system is vastly improved. He pointed out that a critical factor in driving this process is the government’s reducing state ownership to at least 51% in banks and financial institutions open to receiving transfers. This policy is also expected to attract more foreign investment into Vietnam’s Finance – Banking sector – a promising market opportunity for individual investors and investment groups with large capital. 

Regarding the cross-border M&A sector, Mr. Thanh highlights the need to address the challenges currently impeding foreign investment. He identifies issues such as complex legal frameworks, risks associated with deal execution, and inconsistency in financial reporting as the primary reasons that foreign investors remain hesitant. Furthermore, as long as there are solutions to resolve the conflicts between the Buy side and Sell side, alongside cultural differences, we shall expect blossoming M&A deals. 

Read the full article here: https://vir.com.vn/additional-cross-border-deals-depend-on-stronger-reforms-119562.html

Related article: https://plf.vn/ma-in-the-finance-banking-sector-in-vietnam-2021-2025/  

3. PLF’s Vision: Contributing More Perspectives to Vietnam’s M&A Market

Through this article written for VIR, PLF Law Firm desires to share more in-depth perspectives on the potential and outlook of Vietnam’s M&A in multi sectors. This is also one of the main PLF’s initiatives to contribute to the development of M&A in Vietnam and enhance current M&A services, which focus on guiding foreign companies to do business strategically. 

At PLF Law Firm