Mergers and Acquisitions in Vietnam’s Emerging Market Economy, 1990-2009

Quan Hoang Vuong, Dung Tran and Thi Chau Ha NguyenN

No 09-045.RS, Working Papers CEB from ULB -- Universite Libre de Bruxelles

Abstract: This paper is the first major and thorough study on the M&A activities in Vietnam’s emerging market economy, covering almost entirely the M&A history after the launch of Doi Moi. The surge in these activities since mid-2000s by no means incidentally coincides with the jump in FDI and FPI inflows into the nation. M&A industry in Vietnam has its socio-cultural traits that could help explain economic happenings, with anomalies and transitional characteristics, far better than even the most complete set of empirical data. Proceeds from sales of existing assets and firms have mainly flowed into the highly speculative industries of securities, banking, non-bank financials, portfolio investments and real estates. The impacts of M&A on Vietnam’s long-term prosperity are, thus, highly questionable. An observable high degree of volatility in the M&A processes would likely blow outthe high ex ante expectations by many speculators, when ex post realizations finally arrive. The effect of the past M&A evolution in Vietnam has been indecisively positive or negative, with significant presence of rent-seeking and likelihood of causing destructive entrepreneurship. From a socio-economic and cultural view, the degree of positive impacts it may result in for domestic entrepreneurship will perhaps be the single most important indicator.

Keywords: Capital Market; Emerging Market; Entrepreneurship; Mergers and Acquisitions; Transition Economy; Vietnam. (search for similar items in EconPapers)
JEL-codes: G34 G38 O16 (search for similar items in EconPapers)
Pages: 44 p.
Date: 2009
New Economics Papers: this item is included in nep-com and nep-tra
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Citations: View citations in EconPapers (2)

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