In recent years, Vietnam has become one of the most attractive M&A (mergers and acquisitions) markets in Southeast Asia, especially for businesses from Japan. From industrial and financial corporations to technology and healthcare - the investment wave from the land of cherry blossoms is gradually asserting its profound influence on the Vietnamese market. So what makes Vietnam so attractive?

1. Vietnam's strategic advantages in the eyes of Japanese investors

1.1. Stable economic growth and young population

With stable average GDP growth of 6-7% in the pre-pandemic period and recovering strongly after COVID-19, Vietnam is considered a potential market. A population of more than 100 million people, most of whom are young people with high consumption needs and access to high technology, creates strong consumption motivation for foreign businesses.

According to Vietnam Investment Review (VIR), "a fast-growing economy, an expanding middle class and the development of service and industrial sectors have made Vietnam the top choice of Japanese investors." Version."

1.2. Geographic location - regional trade bridge

Vietnam possesses a strategic position in the supply chain in the Asia-Pacific regionMr. Duong. Large seaports such as Hai Phong, Cat Lai, Cai Mep... and the strong development of logistics infrastructure help investors easily connect with the ASEAN market, China and beyond.

1.3. Competitive labor costs, quality human resources

Compared to Japan, Korea or China, labor costs in Vietnam are significantly lower but technical levels and labor productivity are increasingly improving - especially in the information technology, electronic component manufacturing, and fintech industries.

According to Invest Global, Japanese businesses are stepping up investment in technology, digital transformation and consumer retail chains in Vietnam.

2. Typical Japanese - Vietnamese M&A deals

2.1. Taisho acquired DHG Pharma (2019)

Japan's leading pharmaceutical company - Taisho - has spent more than 100 million USD to take control of DHG Pharma, opening up opportunities to bring international standard drug production technology to Vietnam.

2.2. SMBC head investing in VPBank (2023)

The deal is worth about 1.5 billion USD, in which SMBC (part of Sumitomo Mitsui financial group) buys 15% of VPBank's shares - the largest M&A deal in the banking sector between the two countries to date.

2.3. AEON Entertainment invests in Beta Media (2025)

With the goal of expanding the high-quality cinema model in Vietnam, AEON has poured more than 200 million USD into Beta Media, contributing to enriching the domestic entertainment ecosystem.

2.4. Elan acquires TMC Vietnam (2025)

Elan Japanese medical services company has carried out a strategic M&A deal with TMC Vietnam to promote the "Care Support Set" model - supporting patient care at hospitals according to Japanese standards.

3. Challenges and lessons from some failures

Although there are many successful deals, they are not M&AEverything in Vietnam is "smooth sailing". Some main barriers include:

- Complicated legal system and administrative procedures: Many investors complain about lengthy and inconsistent licensing and approval processes between localities.

- Differences in corporate culture and governance: Japanese businesses are famous for their discipline, processes and care. important, while Vietnamese businesses are flexible, sometimes lacking transparency in initial operations.

- Decreasing deal size: According to VIR, in 2024 there will be up to 21 M&A deals between Japan - Vietnam, but the total value is only about 167 million USD, significantly lower than previous years due to the lack of large deals.

4. New trends and long-term strategies

Instead of just buying back shares, many Japanese businesses are turning to investing in new construction (greenfield) in standardized industrial parks like Kizuna - which provides full service and Japanese-standard production infrastructure, helping investors feel more secure about operating quality.

According to Kizuna.vn, Japanese businesses such as Yamazaki, Amphenol, Yanase have achieved success when choosing the service factory model in Vietnam instead of traditional M&A.

Vietnam continues to be a strategic M&A destination for Japanese corporations thanks to its economic potential and geographical location. management, competitive costs and long-term growth opportunities. However, to attract more messagesRegarding quality services, Vietnam needs to further improve the legal environment, transparency and post-investment business support. With the initiative from both sides, Japan - Vietnam M&A will continue to be a bright spot in FDI capital flows in the coming years.