Project M&A - The driving force of the real estate market
The complicated development of the Covid-19 pandemic from last year to the present has made M&A activities tend to develop more strongly. The market has witnessed many popular M&A deals in the past 2 years such as LDG Group receiving the transfer of Quoc Cuong Gia Lai's project in Thu Duc, Phat Dat Real Estate Development and Joint Stock Company acquiring 99.5% shares of Binh Duong Building Investment and Development Real Estate Joint Stock Company, Truong Hai Automobile Group acquired the retail chain E-Mart Vietnam, the cooperation deal between Becamex IDC and Central Retail Vietnam to develop China. mall GO! in Binh Duong,…
It is not difficult to realize that the above cult deals are the presence of big players in many fields, from real estate, construction, transportation ... with diverse market areas and segments. The excitement of M&A activities during the pandemic shows that the confidence and optimism in the market's growth potential and recovery expectation is great. Therefore, the activity of hunting and expanding the land bank has been strongly deployed by many units, despite the current difficulties.
Looking at real estate M&A during the two years of the epidemic, Nguyen Van Dinh, chairman of the Vietnam Real Estate Brokers Association, said that from 2020, due to the negative impacts of the Covid-19 pandemic, many Real estate project investors are in a difficult situation because of the weak economy and lack of resources for implementation, so the phenomenon of M&A appears more. In addition, the epidemic has also caused some businesses to have the potential to conduct M&A to increase capital, expand market share, and increase strength. This is also the time when foreign businesses want and are willing to invest in large-scale projects that have completed procedures and are ready to be transferred in the form of M&A.
Foreign investors - Owners of famous deals
Vietnam's economic renovation has opened its doors to attract foreign investment. Up to now, according to the Ministry of Planning and Investment, foreign capital contributes about 20% of GDP, accounting for about 23.7% of the total investment capital of the whole society. In particular, the field of real estate business is always in the top in attracting FDI. Savills' latest report on real estate M&A shows that, in terms of transaction value, acquisitions made by foreign investors are leading in value.
Enterprises with foreign capital inflows are participating more in real estate M&A activities. With good financial capacity, the presence of foreign investors in M&A deals always resonates in the market because of the deal value and the rigor in project selection criteria. If Vietnamese investors can accept risks to complete legal procedures in parallel with project development, foreign investors will appreciate a clean land fund and a clear legal basis. The principles of foreign investors in finding land funds and projects have been promoting the market to develop in a professional, transparent and healthy direction.
M&A deals with the presence of foreign investors also promote the development of Vietnam's capital and financial markets, helping domestic enterprises reduce their dependence on bank loans. In addition, foreign capital inflows also help domestic enterprises have the opportunity to rub, learn, and take advantage of the strengths of foreign investors in project development, brand name, construction technical level, etc.
According to economic expert Nguyen Tri Hieu, it is not difficult to realize that real estate projects with a leading role or co-participation of foreign investors have formed in Vietnam that have set new urban standards in the direction of civilization. , modern. Projects are usually located in the luxury, high-end, large-scale segments, with the nature of integrated urban areas; promote green living space, harmony with nature and a combination of utilities.
Mr. Hieu said that foreign investors developing real estate in Vietnam have really created new winds, helping domestic enterprises to access high knowledge in project creation, construction projects and projects. high-quality urban program. Over nearly 2 decades, since foreign enterprises entered Vietnam to invest in real estate development, domestic enterprises have learned a lot in project development.
By CafeF