Mergers and Acquisitions between foreign companies and Vietnamese companies: Drivers and Issues

Abstract

The value and number of merger and acquisition deals in Vietnam have increased rapidly over the past decade. Foreign investors play an active role in this trend, especially after Vietnam’s accession to the WTO. The aim of the research is to investigate what factors drive companies to engage in mergers and acquisition as well as the issues they have to deal with in the merger and acquisition process in Vietnam. A conceptual framework is carried out to review previous studies related to drivers and issues in mergers and acquisitions. Then drivers and issues in merger and acquisition activities in Vietnam are explored, based on secondary data and primary data from a Vietnamese securities company which involved in an M&A with a Japanese company. Beside the common drivers and issues discussed in literature, there are some unique features that arise specially in the Vietnamese business environment. Implications for a successful merger and acquisition in Vietnam and further research are also provided.