Many new mechanisms and policies can positively affect the M&A market.

Next year there may be more M&A deals than this year, coming from the logistics, processing - manufacturing, technology, finance... industries thanks to positive changes in the business environment.

Next year there may be more M&A deals than this year, coming from the logistics, processing - manufacturing, technology, finance... industries thanks to positive changes in the business environment.

“Positive institutional changes in recent times have helped Vietnam's M&A market become an attractive market with many deals being made,” Ms. Vo Ha Duyen, Chairman of VILAF Law Firm, emphasized during the discussion session at the Vietnam M&A Forum 2024.

Along with that, efforts to reform administrative procedures and promote digital transformation are also seen as highlights, bringing positive changes to the Vietnamese M&A market.

According to Ms. Duyen, the most significant positive point is the changes towards reducing burdens and expanding investment opportunities, supporting investment in green technology, renewable energy, and promoting sustainable development.

Specifically, the Digital Telecommunications Law, effective from July 1, 2024, has expanded a number of new services, including data center services, cloud computing services, and basic telecommunications services on the Internet, in line with the trend of converting telecommunications infrastructure into digital infrastructure and at the same time creating a clear and equal legal environment for businesses to operate.

Vietnam has been gradually loosening many foreign investor ownership limits and increasing ownership to 100% for many industries, such as electronic services, electronic game services, etc., thereby helping foreign investors to easily invest in these fields.

In the renewable energy sector, Vietnam has a mechanism for direct electricity trading between investors and consuming enterprises, which has not been done before and consumers must buy directly from Vietnam Electricity Group (EVN).

Ms. Vo Ha Duyen, Chairman of VILAF Law Firm (Photo: Le Toan)

However, Ms. Duyen also pointed out challenges that need to be noted in M&A activities in Vietnam. These are changes in tax policies, such as global minimum tax, corporate income tax, special consumption tax, etc.

“Many policies are in the drafting and review stages, so investors need to carefully consider and evaluate the possible impact on future M&A deals. This could lead to many deals being delayed,” Ms. Duyen emphasized.

However, Ms. Duyen also has high hopes for many new draft mechanisms that are expected to have positive impacts, for example, the special investment procedures being considered by the National Assembly deputies at the 8th session, 15th tenure, and are expected to be approved.

This investment procedure is proposed to be applied to a number of projects in the fields of innovation, research and development; semiconductor integrated circuit industry, design technology, manufacturing of components, integrated electronic microcircuits, chips and high-tech fields, high-tech products that are prioritized and encouraged for investment according to the Prime Minister's decision implemented in industrial parks, export processing zones, high-tech zones and economic zones...

“Investors need to spend more time evaluating the impact and how changes, if implemented, will impact investment decisions and potential M&A deals in the future,” Ms. Duyen noted.

Even with the expected positive impacts, Ms. Duyen expects that in 2025 there will be more M&A deals than this year, coming from the logistics, processing - manufacturing, technology, finance industries...

Source: https://baodautu.vn/nhieu-co-che-chinh-sach-moi-co-the-anh-huong-tich-cuc-toi-thi-truong-ma-d231113.html