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M&A interest in Vietnam picks up amid property market jitters

HANOI, June 20 (Xinhua) -- International investors are looking to increase investments in Vietnam, notably in mergers and acquisitions (M&A), amid a property downturn, Vietnam News Agency reported on Tuesday.

The Vietnam Association of Realtors has recorded a surge in the number of foreign cashed-up potential buyers looking at Vietnamese property firms' assets.

The signs are still tentative, however, as the renewed M&A interest has brought hope for local property developers who are struggling with a cash crunch amid difficult market conditions, the association said in its latest market research.

The association reported that investors with M&A interest are mainly from Singapore, South Korea, China's Taiwan region, Japan and Malaysia. Most of the deals are going through the verification or negotiation processes, it added.

Conglomerate Keppel Corporation from Singapore has successfully acquired a 49-percent stake in two adjacent residential projects in the country's southern business hub Ho Chi Minh City from local property developer Khang Dien for 3.18 trillion Vietnamese dong (134 million U.S. dollars).

Gold-plated hotel Dolce by Wyndham Hanoi Golden Lake in the country's capital city has been on the market for a starting price of 250 million dollars since March because its owner is under severe financial stress and forced to sell assets to resolve liquidity, said chairman Nguyen Huu Duong.

A property crisis in Vietnam that started last year was sparked by problems at some of the country's largest property groups which were accused of illegally issuing bonds to raise funds.

Industry experts forecast the property market to stay faltered until the end of 2024. In a worse scenario, the market slump could continue throughout 2025-2026.

New property companies that opened in the first five months of this year plunged 61.4 percent from a year earlier, meanwhile more than 550 companies were dissolved, up 30.4 percent, according to the Vietnam National Real Estate Association.