A new chapter for Korean investors

A new chapter for Korean investors

 Korean investors have been adjusting their investment strategies and the cash flow is increasingly directed to Vietnam. Billions of dollars of investment capital from Korea poured into Vietnam, showing the long-term prospects of the Vietnamese market as well as the confidence of Korean investors in domestic partners.

Vietnam's economy is recovering strongly after the pandemic, GDP in the third quarter of 2022 increased by 13.67% compared to the same period in 2021. However, the recovery is uneven across sectors and fields (recovery). retracement in a K-shaped trend). While some sectors such as tourism and other service sectors are still "slowly" recovering, the output of the manufacturing and business sector has all surpassed pre-pandemic levels. With the spectacular recovery of the economy, along with the advantage of a young population, rapid urbanization and stable political situation, Vietnam continues to be an attractive destination for foreign investment in Vietnam. Southeast Asia.

Meanwhile, the uncertainty in Korea's socio-economic recovery and the decline in the value of the Korean currency against the US dollar have made the majority of Korean investors more cautious when make investments abroad.

In this context, Korean investors have been adjusting their investment strategies and focusing on Vietnam to maximize its potential.

Strategic partners - a new trend in the M&A market

In the past, Korean investors often prioritized the acquisition of the entire target company. After the acquisition, the new owners all have to carry out restructuring and further investment to make the business stable and profitable.

However, recently, Korean investors are increasingly interested in finding Vietnamese partners to create synergy based on a combination of market knowledge, prestige and human resources. local. Over the past few years, the Vietnam M&A market has witnessed the formation of a number of prominent strategic partnerships between major domestic companies and Korean investors.

Hana Financial Group has established a strategic partnership with Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), through the purchase of 15% stake by KEB Hana Bank (in December 2019), following that is Hana Financial Investment Co., Ltd buying 35% of shares of BIDV Securities Joint Stock Company (in 2022).

Even during the outbreak of the Covid-19 pandemic, we also witnessed the strategic investment of Shinhan Financial Group in Tiki - Vietnam's leading e-commerce company (May 2022). ).

Billions of dollars of investment capital of Korean financial groups poured into Vietnam, showing the long-term prospects in the Vietnamese market and the confidence of Korean investors in domestic partners. Alliances and strategic partnerships with local partners have become an increasingly popular market entry option for Korean investors considering an efficient market access strategy.

Vietnam - an important element in the global strategy

As Korea's largest partner in ASEAN, Vietnam holds an important position in the supply chain of major Korean manufacturers and service providers. The investment of Korean investors in Vietnam firstly aims to strengthen the foothold in Vietnam, then to expand to regional and global markets.

In 2019, we observed a major M&A deal between Delivery Hero - the largest food delivery platform in Europe and Woowa Brothers Corp - the largest food delivery platform in Korea. Despite being a leader in each of its respective current markets, one of the most attractive factors is Woowa Brothers' presence in Vietnam. Immediately after completing the merger between the two parent companies, Woowa Brothers Vietnam received a significant additional investment to expand operations, aiming to become a leading company in the field of delivery services. local food and more.

In the first 10 months of 2022, about $ 370 million was poured into Vietnam through M&A deals of Korean investors. It is forecasted that in the coming time, more and more Korean corporations will enter and strengthen their presence in Vietnam through M&A activities.

Real Estate - a potential and attractive field

In the real estate sector, two attractive segments for foreign investors are commercial projects, housing and industrial park infrastructure development.

Real estate has always been an attractive field with strong growth potential and high profit margins. Vietnam's current population is nearly 100 million people and is expected to reach 120 million people by 2050, so the demand for the residential real estate industry in the coming years is forecasted to grow strongly.

With the capital accumulated during the pandemic, institutional investors and individuals with large net worth in Korea are aggressively looking for real estate projects with high potential and stable revenue streams. determined.

In the first 10 months of 2022, about 370 million USD was poured into Vietnam through M&A deals of Vietnam.

From:baodautu.vn