The attraction of Vietnam's retail industry
In 2024, the Vietnamese retail market witnessed many notable mergers and acquisitions (M&A) deals, reflecting the vibrancy and development potential of this sector. One of the notable deals was Mobile World Joint Stock Company (MWG) selling 5% of shares of Bach Hoa Xanh Investment Company to Chinese investment fund CDH Investments, earning VND1,770 billion. This deal helped MWG raise capital to support the operations and business expansion of the Bach Hoa Xanh chain, in the context that this unit aims to achieve after-tax profit from 2024.
Another giant, Masan Group, has acquired VinCommerce for a value of up to 1.1 billion USD. This deal not only helps Masan expand its consumer ecosystem but also significantly strengthens its presence in the retail market. In the field of e-commerce, Tiki has received large investment capital from international funds. This shows the strong interest of foreign investors in the Vietnamese e-commerce market, which is growing rapidly and becoming one of the most potential retail channels.
Some previous major deals also show that investors are stepping up acquisitions to expand market share, such as: Thai retail group Central Group acquired shares in a domestic supermarket chain; Central Group increased its ownership ratio in a large supermarket chain in Vietnam; In the online retail sector, Alibaba and Baring Private Equity Asia increased their investment in Lazada Vietnam.
Accordingly, Alibaba and its partners have poured an additional 200 million USD into Lazada Vietnam to strengthen its position in the race with other platforms such as Shopee or Tiki.
Consumer goods continue to play a key role
According to experts, the active participation of large corporations like Masan in M&A deals not only helps them expand their business networks but also creates strong competition, promoting the development of the entire retail industry.
However, M&A also brings many challenges. In particular, competition from international rivals, especially large retail corporations from Thailand, Japan and Korea, has put domestic enterprises in a difficult position. Therefore, to increase competitiveness, experts say that domestic enterprises need to focus on building clear strategies, focusing more on developing customer ecosystems and improving consumer experiences.
Forecasting the M&A market trend in the coming time, Mr. Nguyen Cong Ai - Deputy General Director of KPMG Vietnam - commented that in 2025, the consumer goods industry will continue to play a key role in the market, along with real estate, manufacturing, and information technology with strong development potential, attracting the attention of domestic and foreign investors.
