In the era of sustainable development, global investment thinking is having a clear shift: from "maximizing profits" to "optimizing sustainable value". Today's mergers and acquisitions (M&A) not only pay attention to financial growth, but also place emphasis on environmental, social and governance factors - also known as ESG.

In Vietnam, the trend of green M&A - that is, investment deals with positive environmental factors - is growing. gradually formed. Although not as popular as in Europe or North America, many domestic businesses, international investment funds and development organizations have begun to reorient their strategies, prioritizing "green" businesses - not just because of their responsibility.m society, but because it is a long-term investment strategy, safe and suitable for the future.

1. What is green M&A? Why is it becoming an inevitable trend?

Green M&A are deals in which the target business has core activities, products or business orientation associated with sustainable development and ESG criteria, especially the environment. For example: renewable energy, waste treatment, clean production, electric vehicles, circular technology...

Factors driving the trend:

• New global regulations: Policies such as CBAM (border carbon tax), Net Zero 2050 force businesses to "green" the supply chain if want to participate in the export market khau.
• Pressure from investors and financial institutions: Funds such as IFC, ADB, Temasek, GIC... prioritize investing capital in businesses with clear ESG strategies.
• Consumers change: According to NielsenIQ 2023, 71% of Gen Z consumers in Asia is willing to pay more for sustainable brands.
• Long-term competition: “Green” businesses have low legal risks, easy access to capital, and are consistent with the strategies of large corporations that are shifting to sustainable development.

2. The picture of green M&A in Vietnam: Starting

Although there have not been many deals officially labeled "green M&A", some recent transactions show thatThe wave of investment for the environment is emerging in Vietnam, especially in areas such as clean energy, circular economy, sustainable logistics, and environmental technology.

Some typical deals:

• AC Energy (Philippines) invests in a solar power plant in Ninh Thuan. Scale of 200 million USD, one of the largest clean energy transactions in Vietnam
• IFC and GIC invest in Duy Tan Recycling: Circular economic model, reducing plastic waste
• SK Group (Korea) invests in VinES, VinFast: Building a closed value chain for the automobile industry in Vietnam
• Green Solutions buys shares in Ho Chi Minh City wastewater company: infrastructure investment helps reduce pollution and improve qualitylife

3. What makes "green" businesses attractive to investors?

Investors don't just buy a business, they buy the future of that business. And businesses that know how to "green" their operations early on - will have a significant competitive advantage.

Advantages of green businesses:

• Compliance with international laws
• Access to preferential capital sources incentives
• Increase consumer appeal
• Higher pricing in M&A
• Advantages in joining the global supply chain

4. Barriers to green M&A atVietnam

Despite the clear trend, green M&A in Vietnam still faces many challenges:

• Lack of a clear ESG standards system, causing businesses to not know where to measure and improve.
• Poor data transparency, making it difficult for the ESG appraisal process in M&A.
• Lack of domestic ESG experts and consultants, causing businesses to not fully exploit their advantages in negotiations.
• Short-term thinking: Many businesses still view ESG as a "cost", not an "investment".

5. What do businesses need to do to get ready for green M&A?

• Building an ESG strategy articleversion: Have a clear set of measurement criteria (for example: carbon emissions, energy consumption, water, waste...). Align ESG with business goals rather than individual CSR activities.
• Standardize ESG data and reporting: Self-disclose or partner with a third-party ESG evaluator. Transparent processes, policies and environmental data.
• Invest in “green” technology: Apply AI, energy control software to reduce consumption, monitor emissions.
• Work with M&A advisors who understand ESG: Consulting helps shape ESG values, integrating into the structure deals, valuation and communication.
• Green M&A is not just a trend – it is a sustainable, mandatory investment strategy in the future. Huge capital flows (green FDI), preferential banks, and large businesses are moving strongly. Companies that prepare early according to ESG standards will be better priced, attractive to investors, and open a wider path for future development.

Today's "green" businesses are tomorrow's "golden" investment opportunities