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Saturday, July 20 2019
Tiếng Việt
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Date 09/08/2018-17:11:00 PM
“New Thrust, New Era”
(MPI) - This is the theme of Vietnam Mergers and Acquisitions (M&A) Forum 2018 that took place on August 8th, 2018 in Ho Chi Minh City, co-organised by Vietnam Investment Review, Ministry of Planning and Investment and AVM Vietnam under the auspices of the Ministry of Planning and Investment.

Attending the Forum were Member of the Politburo, Deputy Prime Minister Vuong Dinh Hue; Member of the Party Central Committee, Minister of Planning and Investment Nguyen Chi Dung; Alternate Member of the Party Central Committee, Deputy Minister of Planning and Investment Vu Dai Thang and speakers, enterprises both domestic and international.

The 10th M&A Forum takes place in the context of Government’s drastic direction in implementing a number of synchronous measures for fast and sustainable economic development, especially measures for restructuring the economy associated with growth model innovation, enhancing the productivity, quality, efficiency and competitiveness of the economy, strongly improving the investment and business environment, enlisting every opportunity of the 4th industrial revolution, etc. These are the main important policy factors that have a direct impact on the development of the M&A market in Vietnam.

Editor-in-Chief of the Vietnam Investment Review, Organization Board, Le Trong Minh speaking at the opening of the Forum. Photo: MPI

Speaking at the forum, Editor-in-Chief of the Vietnam Investment Review, Le Trong Minh emphasized that 2018 marks a decade since the first M&A Forum takes place in Vietnam. The information, experiences that are analyzed, discussed and shared, along with activities to connect investment taken place at the annual Vietnam M&A Forum have played a useful role in the successful implementation process of nearly 4,000 M&A deals in Vietnam since 2009.

At this forum, with the theme "New Thrust, New Era’’, speakers and chairpersons would deeply discuss and analyze opportunities opening up in a new era of M&A in Vietnam on the basis of guidelines and measures to promote institutional reform, restructure the economy, accelerate the equitization process, state-owned enterprises divestment, especially in large enterprises, private sector development, etc, along with the business community’s trust in the business environment, which is being strongly reinforced.

Deputy Minister Vu Dai Thang speaking at the Forum. Photo: MPI

Speaking at the forum, Deputy Minister of Planning and Investment Vu Dai Thang said that in the last 10 years, M&A activities in Vietnam have been growing, becoming a channel to drive the investment capital flow from low-performing sector to more profitable locations, contribute to promoting the development of investment and business activities, especially in the private sector and foreign investment sector in the economy. The total value of M&A deals from 2009 until now has reached an impressive level, about 48.8 billion USD, of which, in 2017 alone, the value of M&A reached a record of 10 billion USD.

Along with an ongoing strong institutional reform process, the legal system on investment and business also has been continuously improving, notably is the Law on Investment, the Law on Enterprises, the Law on Securities and many other specialized laws. It establishes a synchronous legal framework and facilitates the development of the M&A market in Vietnam. This is an objective and inevitable trend, especially when Vietnam’s economy is in the transition, restructuring process and active international integration in both depth and wide.

The 10th M&A Forum becomes a special occasion, not only to look back on the 10 years journey of success and failure, in order to draw good lessons from experiences, but also to discuss new policy recommendations in the context of dramatic impact of the 4th Industrial Revolution, create a new turning point for the development of the M&A market in Vietnam.

In addition, the Forum was held on the threshold of the National Conference to Review 30 Years of Foreign Investment Activities in Vietnam, therefore, Vietnam wishes to receive useful recommendations at the Forum in order to complete laws and policies on attracting foreign investment in Vietnam in an effective manner, in line with the socio-economic development orientation of the country in the 4.0 era.

Minister of Planning and Investment Nguyen Chi Dung speaking at the Forum. Photo: MPI

At the forum, Minister of Planning and Investment Nguyen Chi Dung emphasized that the Ministry of Planning and Investment acts as an agency advising the Government in the establishment of a business investment environment based on the principle of equality between domestic and foreign enterprises.

Minister Nguyen Chi Dung said, to utilize the opportunities offered by the Industrial Revolution 4.0, the Ministry of Planning and Investment is assigned three important tasks by the Government. The first is to formulate a National Strategy on the Industrial Revolution 4.0, which has a huge impact but also is a golden opportunity for developing countries, including Vietnam, to accelerate, develop and shorten the distance with developed countries. Second is to take advantage of opportunities from innovation. In the coming time, it is expected to set up a Centre for Innovation in Science and Technology to serve the development in the 4.0 era. The third is relating to human resources. Talented Vietnamese people are present all over the world and held many important positions in research centers, large corporations, etc., The Ministry of Planning and Investment had a report and was agreed by the Prime Minister on the establishment of a network, connecting Vietnamese intellectuals both domestic and aboard to contribute, research, develop and serve new requirements. On August 18-24th, 2018, the Ministry of Planning and Investment will launch the National Technology Innovation Network in Hanoi and then in Ho Chi Minh City.

Speaking at the forum, Deputy Prime Minister Vuong Dinh Hue stated that M&A is crucial because Vietnam is boosting the process of restructuring the economy, selling state-owned shares in state-owned enterprises, etc. The process of restructuring facilitates M&A deals to develop and vice verse, M&A deals also help Vietnam's restructuring process to succeed. At the same time, he emphasized that Viet Nam is still an attractive destination for international investors, as FDI attraction and disbursement are still very active, being a good platform for M&A. In addition, in indirect investment, there is still net buying and no capital withdrawal phenomenon.

Deputy Prime Minister Vuong Dinh Hue speaking at the Forum. Photo: MPI

To ensure the M&A deals in particular, investment, production and business activities in general, to take place smoothly, the Deputy Prime Minister affirmed that the Government will give priority to maintain macroeconomic stability, strengthen the legal system, such as the Law on Credit Institutions, the Law on Enterprises, the Law on Investment, etc., and forthcoming amendments of the Law on Securities, etc., to ensure the economic institutional framework, protect legitimate interests of investors, remove obstacles in the development of 5 types of markets: labor market, science and technology market, capital market, real estate market and goods and services market, accelerate the reducing of the business conditions.

In fact, the Prime Minister promulgated Decision No. 1232/QD-TTg in August 2017 on approving the list of state-owned enterprises subject to state capital divestment in the period 2017 - 2020 and Decision No. 991/QD-TTg on approving the list of SOEs to be equitized in each year from 2017 to 2020. These are important data for investors to consider and formulate a strategy to buy shares, capital in interested enterprises. In 2018 particularly, a number of EVN's power generation companies (GENCOs) will be equitized. In addition are Vietnam Tobacco Company, Vinacafe, Rubber Group, Chemicals, etc.

The Deputy Prime Minister also shared that more than 10 FTAs between Vietnam and other regions and economies around the world will create an investment movement, a larger M&A scale in Vietnam. Especially, the World Economic Forum on ASEAN (WEF ASEAN) will take place in September in Hanoi and will be the direct opportunity for M&A activities.

Deputy Prime Minister Vuong Dinh Hue also suggested domestic and foreign investors and enterprises give comments for Government, ministries, and branches to complete the legal framework for the development of legal consultancy, auditing, valuation services, establish new business and investments model in the context of rapid science and technology development, which is gradually changing the current traditional economic models.

Three sessions have taken place in the framework of the Forum, including the Push of the Decade; the Appeal of a 100 million Person Market; Strategy to boost M&A activities. At the discussion sessions, leaders of the Government, the Ministry of Planning and Investment, and speakers assessed the development potential of the M&A market in Vietnam when Vietnam’s macroeconomic growth is stable, the investment environment is continuously improving and Vietnam has joined in many bilateral and multilateral free trade agreements.

The annual M&A Forum has contributed in the connection between domestic and foreign investors and growing M&A activities in Vietnam. With the participation of a large number of leading experts, speakers both domestic and international, the Forum has present important policy recommendations, helps state management agencies to complete the legal framework, development and management policies for M&A activity./.

Hien Nguyen
Ministry of Planning and Investment

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