Vietnam retail industry

Vietnam’s M&A market is forecast is expected to touch $6.5-$6.9 billion in 2018 (Photo: baodautu.vn) Hanoi (VNS/VNA) – Vietnam’s M&A market is forecast to reach 6.5-6.9 billion USD in 2018, which is lower than the 2017’s record of 10.2 billion USD. “We expect the M&A value in 2018 to decline from 2017, as this year may not have as big deal as Sabeco,” said Dang Xuan Minh, AVM Vietnam’s CEO. Vietnam’s merger and acquisition (M&A) market hit over the 10-billion-dollar landmark for the first time last year and is at the turning point to reach a new era of opportunities in the next decade. M&A value continued to rise 55 percent year-on-year to reach 3.55 billion USD in the first six months of this year. “One year ago, even very optimistic forecasts hardly envisaged the M&A boom in 2017 which thrust Vietnam’s M&A value to 10.2 billion USD, a growth of 175 percent over 2016. This is a record number, … [Read more...] about Vietnam’s M&A market declines in 2018

The global trade dispute has facilitated more manufacturing into Vietnam, but that trend originated much earlier Each industrial location has its own strengths. Generally, you will find the best industrial park developers in provinces with superior master planning and more successful foreign direct investment attraction policies. Identifying suitable locations for industrial property is dependent on the client’s requirements, business model, the types of property available or needed, and the location itself. Paul Tonkes, director of Industrial & Logistics Services at Cushman & Wakefield Vietnam Vietnam has three key economic zones with high levels of manufacturing, with the following two contributing close to 80 per cent of Vietnam’s GDP: ● Southern economic region: Ho Chi Minh City, Binh Duong, Dong Nai, Long An, Binh Phuoc, Tay Ninh, Ba Ria-Vung Tau, and Tien Giang. ● Northern economic region: Haiphong, Hanoi, Quang Ninh, Hai Duong, Hung … [Read more...] about Identifying apt locations for industrial property

Vietnamese consumers may soon be able to enjoy the results of the historic merger (Photo: Le Toan) Under the deal announced last week, Vingroup’s VinCommerce and VinEco arms will merge into Masan Consumer Holdings, the retail consumer business of Masan Group, to help establish a leading consumer retail group with a network of over 2,600 supermarkets and convenience stores in Vietnam, in which Masan will take control, while Vingroup will be a minor shareholder. The value of the deal has not been disclosed so far, but it may be the largest mergers and acquisitions (M&A) deal of 2019, igniting a competitive retail war. Looking into the deal, Vietnam director at the Institute of Certified Management Accountants (CMA) Long Phan said, “The deal brings benefits to both sides. Masan holds a manufacturing ecosystem with 180,000 points of distribution of consumer goods and subsidiaries like Vinacafé Bien Hoa, Vinh Hao Mineral Water, and Masan Meatlife. VinCommerce owns a … [Read more...] about Merger may bring retail renaissance

Buoyed by increasing interest in taking up loans for purchases among the Vietnamese population, recent years saw an impressive growth of personal finance companies in Vietnam, with FE Credit, Viet Credit, SHB Finance, and Easy Credit, among others, joining the market. The market is expected to thrive with some newcomers backed by giant Oriented Commercial Joint Stock Bank (OCB) and Asian Commercial Bank (ACB). It is interesting that many of the current businesses are an extension of the retail banking business of some banks. Their business network, IT, and risk control system, as well as strong capital foundations, bear the marks of commercial banks. For example, FE Credit, a consumer lending company of VPBank and one of the largest players in the industry, announced that its revenue made up 30 per cent of VND9.2 trillion ($400 million) of VPBank’s overall pre-tax profit. With its return on assets (ROA) and return on equity (ROE) of 2.5 and 22.9 per cent, respectively, the firm … [Read more...] about More firms competing for shares in Vietnamese consumer lending market

Ben Gray, director of Capital Markets at Cushman & Wakefield Vietnam There were strong reactions to the announcement made on December 3 that Masan Group’s consumer holdings subsidiary and Vingroup’s VinCommerce and VinEco business lines are finalising legal terms for a merger, which will form the country’s largest consumer platform. This new platform is exceptional in its scale and reach in the market: 2,600 supermarkets and convenience stores in 50 cities and provinces with 14 eco-farms. This now gives Masan Group, as part of the fast-moving consumer goods ecosystem, greater reach for its products, maximising the benefit from Vingroup’s investment into the retail space. It is an excellent example of a strategic merger of two goliaths of the Vietnamese market. Both have had clear lines of sight and a robust strategy to keep ahead of the structural changes in how consumers are maturing in the market, seeking greater convenience and quality, and seeking out … [Read more...] about Foreign direct investment and mature M&A boost investor confidence