Viet Nam still offers vast potential for investment across many industry sectors according to Rupert Chamberlain, Head of the Financial Advisory Services at KPMG in Viet Nam, in KPMG’s latest report on Global M&A.

“Naturally, we have seen the atmosphere become more cautious of late, but the outlook for the medium and long term is still positive as the fundamental reasons to invest in Viet Nam remain,” said Rupert Chamberlain.

In fact, Vietnam’s demographics, large private sector, WTO commitments and, importantly, the state sector reform programme are all important factors which create an attractive investment climate.

KPMG also expects strong FDI approvals and disbursement to continue and increased M&A activity once the global markets settle down from the recent shocks, and companies start to focus on their growth and cost optimization plans again.

Sharing the same point of view, Pham Mai Huong, Head of KPMG’s Transaction Services Team in Hanoi said “M&A is recognized as an important channel of FDI for Viet Nam. The global financial crisis has made M&A more challenging for the time being, however, this, and domestic conditions have also forced good quality businesses to explore new avenues for fund raising. This should be a good time to explore M&A deals because the crisis is also giving rise to new possibilities.”

KPMG is a global network of professional firms providing Audit, Tax and Advisory services, while KPMG in Viet Nam has become one of the leading professional services firms, with over 700 staff working from their representative offices in Ho Chi Minh City and Hanoi. (CPV)