An influx of new capital from European and US firms into Vietnam has become noticeable, with the local mergers and acquisitions (MA) market expected to maintain its attractiveness despite its relatively modest scale.

According to the Vietnam News Agency (VNA), the assessment was heard at the first Global MA Partners (GMAP) conference held in Vietnam earlier this week.

Global MA Partners is a partnership of independent corporate finance advisory firms operating in 50 countries and regions across the Americas, Europe, and the Asia-Pacific.

Ivan Alver, Co-chairman of GMAP, said he believes that Vietnam’s strengths lie in its stable political environment, abundant and skilled labour force, and competitive labour costs. As a result, multinationals are choosing the Southeast Asian country as a destination to implement their supply chain diversification strategies.

In addition to the prospect of becoming a manufacturing hub in the region, Vietnam also promises to be a consumer market with an increasing middle-c
lass population. European and American investors will have to invest more to penetrate this market, said Alver.

Source: Emirates News Agency (WAM)