Thai Billionaires and M&A Activities in Vietnam | ANT Consulting

The billion-dollar acquisitions of Thai billionaires have brought Thailand to become a formidable force in M&A activities in Vietnam and Asia.

Big C Vietnam has fallen into the hands of billionaire Tos Chirathivat – the boss of Central Group (Thailand) from Casino Group (France) for 1.05 billion USD. In 2015, this group also spent about 100 million USD to acquire Nguyen Kim – the leading retailer in the electronics market. Recently, the Group also spent 10 million USD to acquire the business segments in Thailand and Vietnam of Zalora (belongs to Global Fashion Group of Rocket Internet Corporation).

Previously, billionaire Charoen Sirivadhanabhakdi – owner of TCC Holdings (Thailand) spent 655 million Euros to buy 19 centers and relating real estates of Metro Cash & Cary Vietnam. Also, Berli Jucker (BJC), a subsidiary of TCC Holdings also acquired Family Mart Vietnam. Especially, along with the acquisition of Metro Cash & Carry Vietnam, billionaire Charoen Sirivadhanabhakdi also through the Singapore Beverage Group – Fraser & Neave (F&N) became the 2nd largest shareholder in Vinamilk with 11.04% share. Currently, Thaibev which also belongs to this billionaire is racing to buy 40% share in Saigon beer (Sabeco), with a value of 1 billion USD.

In fact, the trend that Thai businesses acquired businesses outside their national borders is not new. In 2012, Siam Cement Group (SCG) of Thailand signed an agreement to buy 85% share in Prime Group JSC (Vietnam) at the price of 7.2 billion Baht (nearly 5,000 billion VND). This is also the biggest M&A deal in the field of building materials in Vietnam so far.

In the plastic industry, currently, SCG has invested in more than 20 Vietnam plastic enterprises. Particularly, the most significant investment is to buy 80% share in Tin Thanh Plastic Company, a top enterprise in the field of plastic packaging of Vietnam. SCG also holds large shares in 4 companies specialized in manufacturing plastic household – packaging in Vietnam, which are Vietnam – Thai Plastchem Joint Venture, TPC Vina Plastic and Chemical, Minh Thai and Chemtech Plastic Materials.

Currently, SCG is also the 2nd largest shareholder in Tien Phong Plastics and Binh Minh Plastics, just after State Capital Investment Corporation (SCIC). Moreover, SCIC planned to divest from this two plastics companies. This will create opportunities for Nawaplastic Industries to increase its shares in Tien Phong Plastics and Binh Minh Plastics. SCG continues to seek opportunities to invest in Vietnam’s plastic industry.

Most recently, the Ton Poh Thailand Fund has spent 130 billion VND to buy 5.9 million shares of Hoang Huy Investment – Service Company, equivalent to 5.32% of the charter capital of the company. In addition to Hoang Huy, Ton Poh Thailand Fund also owns nearly 6% share of Cotec Construction Company.

An open economic space will create significant opportunities for investment flows. The formation of the ASEAN Economic Community (AEC) and the Trans-Pacific Partnership Agreement (TPP), which expected to take effect from 2018, is the impetus for investment flows into the country in this area. The race has just begun for the countries, investors and Thailand businesses seem to hold this game.

The billion-dollar acquisitions of ambitious billionaires brought Thailand to become a powerful force in M&A activity in Asia. According to experts, the deal with the presence of Thai companies in the M&A market in Asia has increased rapidly, just behind China, Korea and India.

In particular, the market of more than 600 million people of AEC is considered as a more stable market than most emerging markets in the world. The growth opportunities for businesses here will be very attractive, regardless of Thailand, Vietnam enterprises or from other economies.

To sum up, according to economic analysts, the increase of M&A activities will be the obvious result due to the free trade between the countries in goods, services and human resources.

Singapore Investment Imprint in Vietnam Industrial Real Estate | ANT Consulting

With the impact of free trade agreements and capital inflows into Vietnam, Vietnam industrial real estate and logistics are the segments that have grown most rapidly recently.

As a multidisciplinary investment group of Singapore, Sembcorp Development entered Vietnam very early. In 1996, Sembcorp shook hands with Becamex IDC Vietnam Company to establish a joint venture: Vietnam – Singapore Industrial Park (VSIP).

Up to now, VSIP has developed a total of 9 VSIP projects across the country, with a total land fund of more than 8,600 ha, providing production infrastructure for nearly 900 enterprises with a total investment of more than 15 billion USD.

In addition to industrial parks, VSIP is also a pioneer in the construction of urban services and commercial areas, which are planned synchronously along the industrial zones. Currently, VSIP has been developing dozens of such projects to serve the community of experts, employees and local workers as well as industrial zones developed by VSIP.

Also coming from Singapore, Ascendas joint venture with Protrade Company to develop and manage the 500-hectare Protrade International Industrial Park in Binh Duong province and Saigon OneHub Project located in Ho Chi Minh City High-Tech Park (SHTP).

The Protrade International Industrial Park project is built according to international quality standards with a centralized wastewater treatment plant, full facilities, complete infrastructure, providing ready-built and custom-built factories.

Meanwhile, OneHub Saigon is a commercial office complex with an area of 12 hectares, located at the gateway of SHTP.

Designed to meet international green standards, the complex is an ideal choice for companies in information technology, high technology and supporting industries…

Many foreign investors are actively looking for investment opportunities in Vietnam’s industrial real estate market. In particular, many investors chose Binh Duong and Dong Nai to establish manufacturing companies, thanks to the availability of a foundation for production development.

Boustead Projects Limited launched its first ready-built factory project in Nhon Trach 2 Industrial Park in 2018. The factory at phase 1 covers an area of 6 hectares, has been designed and built under the supervision of the team of experts. Currently, this investor is implementing phase 2, with many sustainable and environmentally friendly solutions. This phase is expected to complete and welcome tenants in the third quarter of 2021.

In addition, Mapletree Group, another Singaporean investor, owns and manages total assets of more than 1 billion SGD (719.2 million USD) worth of assets in Vietnam, with a section stretches from Hanoi, Ho Chi Minh City, Binh Duong and Bac Ninh, with 8 real estate and logistics projects.

The wave of shifting and expanding production of foreign investors, including Singaporean investors, is opening great opportunities for Vietnam’s industrial real estate.

In particular, the Covid-19 outbreak caused supply chain disruptions and made international investors more interested in expanding plans, setting up company, branches or production facilities in Southeast Asian countries, in which Vietnam is a reasonable investment destination.

According to Senior Director of Savills Vietnam, Vietnam is always an attractive destination for foreign businesses with a young, more mobile workforce than some other countries in the region, reasonable labor costs.

In addition, there are advantages such as infrastructure, seaports, upgraded transportation system, political stability…

According to the latest report of JLL Real Estate Consulting Company (Vietnam), the total leased land area of ​​the southern provinces is at 25,045 ha in the second quarter of 2020. Supply is filling up rapidly due to soaring demand. Land rent in industrial zones averaged 106 USD / m2 / rental cycle, up 9.7% over the same period last year. The rental price of the ready-built factory is stable at 3.5 – 5 USD / m2 / month.

While the pandemic remains a threat, rental negotiations and new requirements are expected to continue to stall until the end of 2020. However, experts say, the market will quickly recover. right after the situation is under control. A strong industrial development base coupled with an ongoing diversified sourcing trend promises to help bring Vietnam to a new level in the industrial property development market.

Why Japanese Are Interested in Da Nang? | ANT Consulting

There are many advantages in geographical location, low labor costs, open investment environment… have made Da Nang becoming more and more attractive to Japanese investors. The cooperative relation between Da Nang and Japan has already had a solid foundation and are in the best development stage…

Previously, many Japanese investors are often interested in Hanoi or Ho Chi Minh City (HCMC) but recently they have been paying much attention to Da Nang – the city by the Han River. Besides the natural advantages, the Da Nang Government has also actively support and creates favorable conditions for investors, including Japan.

Recently, Da Nang and Japanese localities have also actively expanded their friendly cooperative relations in various fields. Da Nang has officially signed the Memorandum and deploy the friendship cooperation with Kawasaki, Sakai Yokohamam, Mitsuke and is taking steps to promote expanded cooperation, towards the signing of the Memorandum with Nagasaki, Kobe, Yaizu, Fukuoka, Otawara, Nemuro, Kushiro, Matsusaka. Da Nang is Vietnam’s pioneering province of Vietnam that has representative office in Tokyo…

Up to now, there are more than 120 enterprises and representative offices of the company from Japan have been active in Da Nang, with total investment of about 500 million USD, creating more than 30 thousand jobs for local workers. Annually, Da Nang also welcomed about 200 Japanese delegations came to survey and seek opportunities for cooperation and investment.

There are many projects in Da Nang that are constructed using ODA capital from Japan such as Hai Van Tunnel, the project to upgrade Tien Sa port, Da Nang Hospital…

Da Nang has a favorable geographical location as international gateway when lying on the East – West economic corridor, linking the countries in the ASEAN region. In addition, Da Nang has open investment environment with the liberal policies, implemented by the Government, transparent and facilitate administrative transactions…Moreover, Da Nang also has the advantage of cheap labor costs. Labor cost here is only 1/3 the salary paid to Chinese workers, an important factor in deciding to investment…

To welcoming the wave of Japanese investors, Da Nang has applied teaching Japanese language at secondary and high schools. Until now, Da Nang is province with the highest the number of students who study Japanese language in the central of Vietnam.

Korean Investors Interested in Vietnam Stock Market | ANT Consulting

Came to Vietnam this time, the Korea Financial Investment Association included CEOs of many securities companies, fund management companies with managed capital flows of about 350 billion USD.

At the workshop named “Capital market and prospects for investment cooperation between Vietnam – Korea”, organized by Ho Chi Minh Stock Exchange (HOSE) and the Korea Financial Investment Association, many investors expressed their interest in Vietnam’s exchange traded funds (ETF), the obstacles that these funds may be encountered when listed on the Korean stock market, or the opportunities to invest in state owned enterprises (SOE) that are about to be equitized and divested.

According to the Chairman of HOSE, as of the beginning of December 2015, Vietnam financial market has 34 legal entities which are branches and offices of Korean companies that are operating, supplying a variety of services, create excitement and enhance the value added to the market.

In recent years, the authorities have taken many ways to attract foreign investors such as loosening room, promoting the equitization of SOE, launched new products, efforts to improve the market… thereby creating attractiveness and long-term potential for Vietnam stock market, which opens up attractive investment opportunities for these investors.

The workshop is expected to provide more information, introduce potential areas with different views for Korean investors.

According to the President of the Korea Financial Investment Association, annually, the Association often organizes visits to financial agencies in many different countries to learn about investment demand. This year, the delegation come to Vietnam are all the CEOs of the securities companies, fund management companies with managed capital flows of about 350 billion VND.

The reasons for choosing Vietnam of the Association to be the destination to explore investment opportunities because Vietnam is getting more attention from international investors, especially when TPP was signed and Vietnam is also member of Asean Economic Community.

In addition, the Government of Vietnam is making efforts to improve the investment environment, this is the foundation for Vietnam’s economy to develop and become an attractive destination.

Korean investors at the workshop expressed their interest in Vietnam stock market, especially investor structure, the number of listed companies, the number of fund management companies, establishing pension fund, listing the ETF Vietnam on the Korea stock market and investment opportunities to invest in SOE that are about to equitized and divested.