1. "VIETNAM M&A ACTIVITY 2011 – 2012 REVIEW ” 陳春瓊 (Michael) MA2N0234 1

2. Content…..  Definition of M&A  Why M&A now in Vietnam  Vietnam economic environment  Vietnam M&A activities review (2011 -2012)  2

3. 1.Definition of M&A “M&A – Mergers and Acquisitions”  A merger is a “combination of two companies to form a new company”  An acquisition is the “purchase of one company by another in which no new company is formed.”  Relative terms: Inbound M&A: a foreign company merges with or acquires an inbound company. Outbound M&A: a local company merges with or acquires an foreign company, focusing on movement of investment through oversea. Domestic: mergers or acquisitions among local companies.  3

4. 2.Why M&A now in Vietnam  Vietnam economy has become more opened and integrated to world economy(event of Vietnam enjoying WTO, 2006) => M&A as a strategy to invest in Vietnam.  High level of interest rate, difficulties to raise capital from the stock market, and government’s efforts to discipline and restructure of state owned enterprise => create attractive opportunities for cross – border M&A.  4

5. 3.Vietnam economic environment  Figure 1. Vietnam ‘s GDP and CPI over last 12 years 5

6. 3. Vietnam economic environment Figure 2. Vietnam Import, Export and trade deficit, 2000 - 2011 6

7. 3. Vietnam economic environment Figure 3. FDI disbursement into Vietnam, 1991 – 2011 7

8. 4.Vietnam M&A activities review (2011 -2012) 8  266 deals concluded in 2011 with total value of $US 6.3bn including inbound, outbound domestics M&A.  The number of M&A in 2011 was lower than 2010, Total value in 2011 was 3.7 times higer than 2010. Value US$M Number of deals

9. 4.Vietnam M&A activities review (2011 -2012) 9  Financial services are the most active sectors in term of total deal value.  These top 3 sectors accounted for 66% of total Vietnam M&A market size.

10. 4.Vietnam M&A activities review (2011 -2012) 10  55 % of the deals had an average deal size of less than US$5m, 19%(51/266 deals), were more than US$30m and only 3% (39/266) were more than US$100m.

11. 4.Vietnam M&A activities review (2011 -2012) 11  In M&A type: inbound, outbound and domestic, M&A inbound remains an the most largest rate in M&A activities in Vietnam

12. 4.Vietnam M&A activities review (2011 -2012) 12  Japanese firms accounted for largest deal value (US $ 940M) and volume (18 deals) compared to other countries and territories.  The number of deals from japan accounted for 31% ( 18/59 deals) with deal value accounted 27% of total value

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