 |
| Seck Yee Chung, Vice president, Singapore Chamber of Commerce in Vietnam |
In 2025, Singaporean merger and acquisition (M&A) activity in Vietnam continued its strong presence, signalled by high-profile deals, shifting trends, and both exciting opportunities and unique challenges.
The year has seen various noteworthy Singapore-backed M&A transactions in Vietnam, spanning a diverse range of sectors.
CapitaLand announced in Q2 that it has formed a strategic partnership with Vinhomes in the real estate sector. Simultaneously, CapitaLand also introduced its newest real estate project, named The Fulton, which was acquired from Vinhomes Ocean Park 3 in Hung Yen province. The project began development in June, with projected capital reaching $800 million.
Dale Investment Holdings, a Singapore-based investment fund, acquired a 73.15 per cent stake in Tam Tri Medical, one of Vietnam’s private hospital chains operating mainly in central and southern provinces.
The stake, valued at over $30 million, marks the full divestment of Vietnam Opportunity Fund, a Vietnamese fund managed by VinaCapital.
Levanta Holding, a member of the Levanta Renewables group, acquired an 80 per cent stake in HBRE Gia Law Wind Power. The stake, worth approximately $33.1 million, will see Levanta take control of the HBRE Chu Prong’s wind power project in Gia Lai province.
Meanwhile, Singapore-based investment fund Platinum Victory has registered to purchase an additional 18.1 million shares in Refrigeration Electrical Engineering Corporation. The transaction, worth approximately $43.6 million, will increase the fund’s stake from 41.64 per cent to nearly 45 per cent.
And venture capital fund Vertex Growth Fund (backed by Temasek) announced that it has led a successful Series C funding in menswear brand Coolmate. This marks a milestone for Vietnam’s consumer sector, where a 100 per cent local brand with global aspiration receives critical international funding to expand its business both in Vietnam and overseas.
In 2025, we have noticed several key trends regarding Vietnam M&A. There is a clear pivot towards tech-driven sectors, such as fintech, e-commerce, and digital banking. Singaporean investors are drawn by Vietnam’s young, tech-savvy population and the government’s push for digital transformation.
Sustainability is also at the forefront, with Singaporean firms investing in renewable energy, green buildings, and sustainable supply chains. The alignment of Vietnam’s climate goals with Singapore’s Green Plan 2030 has fostered synergies in clean energy and environmental technologies.
Meanwhile, many Singaporean companies prefer forming joint ventures or strategic alliances with local partners. This approach helps navigate regulatory complexities and leverages local market expertise.
Furthermore, there is increased activity from Singapore-based private equity and venture capital funds, particularly in early-stage tech startups and smaller businesses, reflecting a broader trend of risk-taking and innovation.
Vietnam’s strong economic fundamentals, including steady GDP growth, a burgeoning middle class, and a favourable demographic profile, create an attractive environment for Singaporean investors.
Some key advantages include Vietnam’s large consumer market and rising purchasing power, offering a gateway for Singaporean companies seeking regional growth; Vietnam has become a prime destination for manufacturing investments as global supply chains diversify away from China, supported by free trade agreements, skilled workforce, and competitive labour costs; and the government’s supportive policies for digitalisation and renewable energy align with Singapore’s policies and open new avenues for Singaporean expertise and capital.
However, despite the promising landscape for M&A activities, Singaporean investors still face several challenges.
Firstly, Vietnam’s evolving legal and regulatory framework can pose hurdles, especially in sectors with foreign ownership restrictions or ambiguous licensing procedures. Secondly, as there are cultural and operational differences between the two countries, bridging gaps in business culture, management styles, and consumer preferences requires local partnerships and adaptability.
Thirdly, with the influx of global investors, including those from Japan, South Korea, and the United States, competition for high-quality assets will intensify. Lastly, limited access to reliable data and differences in corporate governance standards can complicate deal-making and post-merger integration.
Nevertheless, the outlook for Singaporean M&A activity in Vietnam remains positive. As both economies deepen their bilateral ties, the M&A pipeline is expected to stay robust, fuelled by Vietnam’s continued economic reforms, digital transformation, and green transition. Consequently, Singaporean companies are well-positioned to capitalise on these opportunities and develop their investment portfolios in Vietnam.
However, as stated above, both Vietnam and Singaporean investors will have to navigate certain hurdles to achieve success, contributing to the prosperity of both countries not just in the near future, but also for decades to come.
