Hanoi (VNA) – The real estate market is predicted to witness the mostmerger and acquisition (M&A) deals in 2018.

A report of the Vietnam M&A Forum 2018showed that in 2017, the sectors with the highest M&A value were consumergoods with 57 percent of the country’s total value, real estate (27 percent),finance-banking (4 percent) and chemicals (3 percent). However, in the firstsix months of 2018, real estate rose to top position with 66.75 percent,followed by finance-banking (19.06 percent) and industrial production (9percent).

Dang Xuan Minh, AVM Vietnam’s CEO, said thatM&A transactions in the property market focus on projects in big cities,new urban areas with a high population density and resorts and hotels in thedowntown areas, which are drawing attention from both domestic and foreigninvestors.

Several real estate investors have attractedforeign investment to develop projects, such as Vinhomes, Bitexco and Nam Long.Real estate is one of the five sectors attracting the most foreign investmentin Vietnam.

M&A value continued to rise 55 percentyear-on-year to reach 3.55 billion USD in the first six months of this year.

Vietnam’s M&A market is forecast toreach 6.5 billion USD in 2018, equal to 63.7 percent of 2017’s figure.

The market exceeded the 10-billion-dollarlandmark for the first time last year, a nine-fold increase against 2008, withthe record deal of the decade the 4.8 billion USD ThaiBev (Thailand) paid for a51-percent stake in Sai Gon Beer-Alcohol-Beverage Corp (Sabeco).

Le Trong Minh, editor-in-chief of VietnamInvestment Review, said the M&A boom in 2017 and first half of 2018 wasfueled by the initial public offerings of big enterprises and encouragingeconomic policies, which will remain the driving force for the market.

According to Deputy Minister of Planning andInvestment Nguyen The Phuong, the process of economic integration andrestructuring has accelerated SOE equitisation as well as the development ofprivate sector and foreign investment, opening up more M&A opportunities inVietnam.

However, he also pointed out some challengesto the M&A boom in the next period, including rising protectionism, tradewar (especially between the United States and China), geopolitical tensions anddecelerating growth in big economies.

In 2018, M&A deals in Vietnam areexpected to continue focusing on real estate, consumer goods and retail. Inaddition, the fields of telecommunications, energy, infrastructure,pharmaceutical and education will also be on radar of investors.-VNA