The Vietnam investment market witnesses several large deal closings and announcements in September, despite expectation for a quiet H2-2023.
The consumer & retail sector had the highest transaction amount among all sectors with a total raise of USD200m from Bain Capital to Masan Group and an ongoing discussion of USD1.5bn to purchase Bach Hoa Xanh from Singapore GIC.
Manufacturing followed with a closed deal of USD150m from Chinese battery manufacturer Gotion Inc. to VinFast and an announced investment of USD1bn from Hana Micron in chip production in Vietnam.
Besides these notable deal closings in consumer and manufacturing, real estate, healthcare and technology are other sectors that welcome investments, deal announcements as well as some positive movements in the market.
Aggregate Deals Value = USD2,940.5m
This month's top deals
Consumer & retail
Bain Capital scores first deal in Vietnam, to invest at least USD200 million in Masan Group
On October 2, Masan Group Joint Stock Company (Masan) said that Bain Capital - the world's leading private investment fund with total assets under management of approximately USD180 billion, has agreed to invest at least USD200 million. USD equal to equity capital into Masan Group with a value of VND85,000 per share. This transaction marks Bain Capital's first investment project in Vietnam.
GIC eyes potential M&A deal in Vietnam's retail sector
GIC is among the bidders looking to acquire a stake in Bach Hoa Xanh in a transaction that could increase the grocery chain's valuation to USD1.5-1.7 billion. Other bidders include companies from Thailand. The deal is slated to be wrapped up in the first quarter of 2024 if the negotiations are successful.
Chinese battery firm Gotion invests USD150 million in VinFast
Chinese battery manufacturer Gotion Inc. has agreed to acquire 15 million ordinary shares of VinFast through a private issuance valuing the shares at USD10 apiece, with an investment totalling USD150 million, representing 0.7 per cent of VinFast's total equity.
South Korea's Hana Micron to invest USD1 billion in Vietnam chip production
Hana Micron plans to pour USD1 billion into chip production in Vietnam by 2025, the latest in a wave of semiconductor investments flooding into the communist country.
The South Korean manufacturer of chip packaging and memory products told Nikkei Asia it is moving equipment to its new, second factory in Bac Giang province to "prepare for production and we have a busy schedule with customer audits, etc." The province hosts three Apple suppliers and, with neighboring Bac Ninh, is known for making the bulk of Samsung phones globally.
Gene Solutions raises USD21 million series B, targeting regional expansion
Gene Solutions, which bills itself as Vietnam’s largest genetic testing company, has raised USD21 million in a series B round from Mekong Capital. This follows a USD15 million investment that the private equity investor made in the company in 2021.
Gene Solutions is one of Mekong Capital’s recent bets in biotech, a sector that has been arguably underserved by venture capital firms in Vietnam.
Parkway dental clinic chain secures USD5 million investment
Vietnamese dental clinic chain Parkway has wrapped up an investment of about USD5 million from 24hmoney. The fresh funds will be used to fuel Parkway's business expansion and facility upgrade. The dental clinic chain will also receive technology support from 24hmoney. Founded in 2017, Parkway has 11 dental clinics in five localities in Vietnam. The company plans to put another six dental clinics into operation by the first quarter of 2024.
KKR in talks to purchase Saigon Medical Group
US global investment firm Kohlberg Kravis Roberts & Co.(KKR) is currently in discussion with Singaporean investment fund Heliconia Capital regarding the acquisition of the Medical Saigon Group (MSG). This may pave the way for Heliconia Capital, which is wholly owned by Temasek Holdings, to divest its stake in MSG, having initially invested in 2019.
Malaysian developer SkyWorld makes first land acquisition in Vietnam
In a Thursday announcement, SkyWorld said its wholly-owned subsidiary SkyWorld Vietnam has entered into a conditional shares sales and purchase agreement with Thuan Thanh Trading Production and Real Estate Training JSC and three individuals.
SkyWorld will spend VND350 billion (USD14.5 million) on acquiring 100% of the Vietnamese firm’s shares.
Upon completion of the deal, SkyWorld will own several land lots, including a 2,060-square-meter plot and five parcels of between 64 and 1,026 square meters each, all in District 8, HCMC.
Knots untangling for top projects in Vietnam’s key cities
Ho Chi Minh City and Hanoi are working to resolve issues around delayed real estate projects, with Hanoi resolving more than 420 projects and Ho Chi Minh City resolving 67 projects in the last two years. The Ministry of Construction (MoC) has received 112 documents reporting problems and recommendations for over 170 other real estate projects. Efforts by the MoC and related bodies have increased confidence in the real estate market. Two projects from Hung Thinh Group, Moonlight Avenue and Moonlight Centre Point, have had investment procedure bottlenecks removed. The MoC is also working with relevant ministries to review and amend regulations for improving fire prevention conditions in more than 38,000 existing projects.
TopCV Vietnam secures strategic investment from Japan's Mynavi Corporation
TopCV Vietnam, a rising start-up within the human resources (HR) sector, in late August confirmed its continued receipt of strategic investment worth several tens of millions of dollars from Japan's HR conglomerate, Mynavi Corporation. Mynavi's initial equity contribution to TopCV's venture was made in 2021. Prior to the Japanese conglomerate's involvement, TopCV had garnered investments from various domestic and international funds, including South Korea's Nextrans, Next100, and VIC Partners, among others.
F88 successfully raised USD50 million from foreign funds
F88 Business Joint Stock Company has just successfully mobilized a new foreign loan worth USD50 million (VND1,200 billion) from Lending Ark Asia fund.
This is the second mobilization after the first time Lending Ark Asia fund poured into F88 in November 2022, bringing the total loan amount from this fund to USD100 million. Previously in March, this company also received an additional USD50 million from two foreign-invested funds in Vietnam.
Note: Deal values include disclosed announced & closed deals with amounts restricted to the local scene i.e., amounts related to the Vietnam entity and/or business. Rumored deals are not included. Cross-posted deals are also adjusted to avoid double count.