[Round-up] M&As in Vietnam to Hit Fresh Record, Banks Expect Brighter Outlook

Tuan Minh

21:10 13/01/2016

BizLIVE - M&A deals in Vietnam are forecast to set a new record high this year as foreign appetite rises. Banks are upbeat about further improvement in their performance in 2016.

[Round-up] M&As in Vietnam to Hit Fresh Record, Banks Expect Brighter Outlook

M&A deals in Vietnam are forecast to set a new record high this year as foreign appetite rises.

M&As in Vietnam Set to Hit Fresh Record This Year on Foreign Interest
Mergers and acquisitions (M&A) deals in Vietnam are forecast to set a new record high this year, driven by foreign buyers’ interest in the country’s fast-growing consumer sector, Bloomberg reported.
Dealmaking could rise further in 2016 after free-trade agreements came into effect and the government passed streamlined investment rules, according to Baker & McKenzie and Duane Morris LLP.
Announced acquisitions involving Vietnamese companies rose 40% last year to $4.3 billion, beating the previous record of $4.2 billion in 2012, data from the Vienna-based Institute of Mergers, Acquisitions and Alliances show. The financial sector had $1.6 billion in deals, followed by consumer, with $1.2 billion.
Vietnam Aims to Emerge to ASEAN Top Half by 2020
Vietnam will strive to scale up its development in the ASEAN bloc and climb to the upper half within five years, according to the government’s latest strategy on international integration.
Vietnam’s economy is aimed to be shoulder-to-shoulder with the current top four ASEAN countries, including Singapore, Malaysia, Thailand and the Philippines by 2025.
World Bank Supports Vietnam in Trade Facilitation
The World Bank will help the General Department of Vietnam Customs develop the Vietnam Trade Information Portal under a program to support the country in implementing the World Trade Organization’s Trade Facilitation Agreement (TFA).
The World Bank will also help set up a national committee on trade facilitation, making it easier for Vietnam to fulfill TFA’s terms based on the assessment of ministries and agencies’ readiness for complying with commitments.
Prime Minister Approves TH True Milk’s Russian Dairy Farm
Prime Minister Nguyen Tan Dung has approved Nghe An Tate & Lyle Sugarcane and Sugar Limited Company, a subsidiary of TH Milk Food Joint Stock Company of Vietnam, to construct the first phase of its hi-tech concentrated dairy, cattle breeding, and fresh milk production project worth $500 million in Moscow, Russia.
The first phase is a part of a three-phase hi-tech concentrated dairy and fresh milk production project worth $2.7 billion, which is going to be Vietnam’s largest agricultural and food processing project to be invested in Russia, according to the Vietnam Investment Review (VIR).
Booyoung Vietnam Residential Project Stalled in Hanoi
Residential complex Booyoung Vina, invested by Booyoung Vietnam Company Limited, has reported little progress after nine years of starting construction works, VIR reported.  
The $171-million Booyoung Vina apartment complex, to be built on six square land plots covering a total 4.3 hectares in the heart of Mo Lao new urban area in Hanoi’s Ha Dong district, was licensed to the firm in 2006. The completion of the six 30-storey apartment buildings was slated for completion in 2010.
Computer Viruses Cost Vietnam $387 Million in 2015
Computer viruses caused a loss of 8.7 trillion dong (roughly $387 million) in Vietnam last year, compared to 8.5 trillion dong ($377.8 million) in 2014, BKAV Technology Group said in its latest network security survey released last month.
Nearly 63,000 new viruses were detected last year, infecting 61.7 million computers. On average, a computer user in Vietnam lost 1.25 million dong ($55) and nearly seven million computers were seriously affected, according to the survey.
Vietnam SMEs Need Support to Benefit from Free Trade Deals
Vietnam’s small and medium sized enterprises (SMEs) need aids from public offices in getting information about regulations of free trade agreements (FTAs) for getting more benefits from the agreements, experts said at a recent APEC public-private dialogue in Hanoi, the Vietnam News Agency reported.
Unlike large and transnational companies, SMEs cannot avail the advantages from the FTAs, especially in Vietnam, an APEC member country, said Nguyen Cam Tu, deputy minister of industry and trade. 90% of Vietnamese enterprises are SMEs and micro companies.
Banks in Vietnam Expect Credit Growth at 21.4% in 2016
Credit growth in the Vietnamese banking system is predicted at 21.4% this year, outpacing a 17.46% expansion expected for deposits, a State Bank of Vietnam (SBV)-conducted survey with banks operating in the country showed, citing their improved performance last year.
Both the figures are much higher than the banks’ respective estimates of 14.57% and 14.35% for last year.
Over 90% of credit institutions said their bad debt ratios were lower than the safety threshold of 3% in 2015, according to the survey.
Prices of the U.S. dollar quoted by Vietnamese banks have declined in comparison with the dong, the local currency, over the past three days, as market sentiment has stabilized after State Bank of Vietnam (SBV), the country’s central bank, launched a more market-based exchange rate on January 4.
Local media cited banks as saying that an abundant supply of the greenback in Vietnam has been attributed to the weakening of the currency against the dong.
Vietnamese firms raked in a combined 10.4 trillion dong (roughly $462 million) from share sales on the Hochiminh and Hanoi stock exchanges during 2015.
The sales included IPOs of state giants such as Vinacomin’s subsidiaries, Vegetexco, ACV, Saigon Port and Seaprodex.
As many as 11,800 new apartments were launched from 17 new and seven existing projects in HCM City in the fourth quarter (Q4) of 2015, rising 20% quarter-on-quarter (qoq) and more than 100% year-on-year (yoy), real estate service firm Savills Vietnam has said in its latest report.   
This was the largest new supply by quarter over last five years, it says. Total primary stock was nearly 37,200 units, increasing 20% qoq and 101% yoy.