Vietnam capital market M&A trends 2025: Foreign investment

Vietnam capital market M&A trends in 2025 indicate a surge in foreign capital inflows, especially from international investment funds. This trend is driven by the Government’s plan to upgrade the stock market to FTSE’s secondary emerging market status, unlocking new M&A opportunities in real estate, finance, and energy.” 

Preconditions for M&A capital trends in 2025 in Vietnam

Experts predict that in 2025, foreign capital will continue to dominate Vietnam’s stock market. This expectation is based on the government’s plan to upgrade Vietnam’s stock market to a secondary emerging market status under FTSE’s classification in 2025. Notably, since November 2024, the requirement for foreign investors to pre-fund 100% of their trade has been removed1, marking a crucial step in the market’s upgrade process. Although challenges remain, particularly given the recent unfavorable developments in Vietnam’s stock market, the government’s strong commitment makes it highly likely that the plan will be successfully implemented with positive results. 

Additionally, policies emphasizing clean energy development, sustainable projects, and green standards are expected to attract more investment into the real estate and energy sectors, as they align with global sustainability criteria. 

M&A capital flow trends in 2024

M&A activity in the financial sector showed signs of slowing down. However, experts consider this part of a predictable cycle given the overall global economic situation. After a series of major financial M&A deals between 2021 and 2023, buyers now require additional time to assess and integrate into Vietnam’s financial business environment. Meanwhile, some sellers are strategizing their divestment plans, attracting foreign investors, and preparing for upcoming transactions. 

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M&A capital flow trends in 2025

Foreign capital is expected to continue flowing into Vietnam across various sectors, with key areas of focus including: 

Finance, securities, and retail through the stock market

Vietnam’s stock market has long been familiar with foreign investment funds acquiring capital for domestic enterprises. The Finnish investment fund, Pyn Elite Fund had an active year in Vietnam’s market in 2024, focusing on financial and securities stocks, particularly banking shares such as STB, TPB, and Sacombank2. The foreign M&A capital trend via the stock market is projected to expand further in 2025, especially with the government’s stock market upgrade plan.  

The increasing number of foreign investors opening securities accounts in Vietnam further highlights the market’s appeal. In October 2024, the Vietnam Securities Depository and Clearing Corporation issued securities trading codes to 196 foreign investors and foreign-invested economic organizations holding over 50% of charter capital (including 35 organizations and 161 individuals)3. 

Real estate sector attracting more foreign capital

Foreign capital inflows into Vietnam’s real estate market await continuation in 2025. Regulatory improvements, such as the Law on Lands 2024 and the Law on Housing 2024, will help eliminate overlapping regulations. Additionally, the decentralization of the application and approval processes to local authorities is expected to accelerate M&A activities in this sector. Consequently, foreign investment will continue to increase as parties proceed with the execution and completion of identified M&A deals. Some notable foreign-invested M&A transactions in real estate include: 

• Malaysian real estate conglomerate Gamuda Bhd, through its subsidiary Gamuda Land, acquired 100% of Tam Luc Real Estate Joint Stock Company for $315.8 million (approximately VND 7.2 trillion) to advance a project in Thu Duc City, Ho Chi Minh City. 

• Daewoo E&C investing in the 96-hectare Kien Giang new urban area in Thai Binh province, with a total investment estimated at nearly VND 10 trillion. 

• Kim Oanh Group partnered with Sumitomo Forestry, Kumagai Gumi, and NTT Urban Development to develop the 50-hectare “The One World” project in Binh Duong4. 
  

  

Domestic capital continues circulating within the local market  

While not as high-profile as foreign-related M&A transactions, domestic capital transactions—including share transfers and acquisitions among local enterprises—are expected to persist. 

In 2024, BaF Vietnam acquired 171,500 shares (49% of charter capital) in five livestock enterprises in Quang Tri province and secured a 95% stake in Khuyen Nam Tien High-Tech Livestock Co., Ltd. in Dak Lak province for VND 47.5 billion5. This move aligns with BaF’s strategy of strengthening its livestock business and expanding its supply chain. The trend of supply chain expansion is anticipated to continue in the coming years as domestic enterprises refine their development strategies, building a solid foundation for international market expansion.  

Conclusion

In 2025, foreign capital is expected to dominate M&A transactions in Vietnam. A surge in foreign capital via the stock market, particularly in finance and securities, is highly persuasive. Meanwhile, the real estate sector will continue to attract foreign investments through M&A activities. Besides, the government’s commitment to upgrading the stock market to FTSE’s secondary emerging market status and regulatory improvements in key industries are also paving the way for increased investment opportunities.

At PLF Law Firm

We provide expert legal guidance to help investors and businesses strategically invest in Vietnam’s M&A market in 2025 amid strong foreign capital inflows, particularly in finance, real estate, and energy. Whether you need support in Mergers & Acquisitions, Corporate Structuring, Compliance, or Market Entry Strategies, our experienced legal team ensures a seamless and legally compliant business operation.

📩 Contact PLF Law Firm today for expert legal advice at inquiry@plf.vn or call +84913 902 906. Connect with us for a Free Initial 30-Minute Consultation.

Article time: 10/02/2025

References for M&A news in Vietnam:

Nikkei Asia: Vietnam Investment & Market Trends
Bloomberg: Vietnam Economy & Markets

PLF Law Firm