Assertive entry strategies from investors into Vietnam

What has the performance of mergers and acquisitions (M&As) in Vietnam’s finance services sector looked like so far this year?

Following a volatile year for global markets, Vietnam’s financial services sector has entered 2025 with a renewed focus on targeted, strategic M&A transactions, rather than a broad-based surge. While overall volume and value have moderated, foreign investors remain active in digital finance, insurance, and capital market infrastructure.

To better assess foreign investor sentiment, it is essential to isolate inbound M&A transactions – those involving international acquirers – rather than relying on total transaction figures, which also include domestic restructuring.

In the first quarter of 2025, inbound M&A activity actually slowed considerably, with just two recorded transactions totalling $170.6 million in disclosed value. This marked a sharp decline from deals valued at $924.6 million during the same period in 2024. However, this reduction reflects timing rather than diminished interest.

Could you share some notable deals in the first quarter of this year?

Both volume and value in early 2024 were buoyed by the SCBX-Home Credit mega-deal – one of the largest in Vietnam’s financial services history – which significantly elevated the prior year’s base. In contrast, early 2025 has yet to reflect several significant inbound transactions that have already been signed but are pending regulatory approval.

Airwallex, a global payment and financial platform, has signed definitive agreements to acquire CTIN Pay, a licensed Intermediary Payment Service provider. The deal, pending regulatory clearance, will expand Airwallex’s licensed footprint across Asia-Pacific.

Chubb Ltd. has announced agreements to acquire Liberty Mutual’s insurance businesses in Vietnam and Thailand, strengthening its regional presence. The Vietnam transaction has been signed and is pending regulatory approval.

These developments reflect continued high-conviction interest from global players in Vietnam’s digital payments and insurance sectors.

While deal count and value are currently subdued, the nature of the transactions completed in Q1 highlights continued strategic depth.

Meanwhile, AEON Financial Services completed the acquisition of PTF, a licensed consumer finance company in Vietnam, in a transaction valued at $169.5 million. The deal reflects sustained foreign interest in Vietnam’s retail credit sector

What drives valuation for assets in financial services M&A?

Compared to more saturated markets like Singapore or South Korea, Vietnam offers growth at a discount. While premiums are rising for established players with strong market share or proprietary fintech capabilities, many mid-sized firms remain undervalued relative to their long-term potential.

Even as top-tier fintech and insurance companies command higher multiples, Vietnam still offers compelling entry points, especially when compared to regional peers like Indonesia, Malaysia, and the Philippines.

Vietnam’s macroeconomic stability, favourable demographics, and an improving regulatory landscape are encouraging more assertive entry strategies from global investors. Additionally, the low-interest-rate environment in developed markets continues to drive capital towards emerging economies.

For global investors seeking higher returns, Vietnam presents an attractive mix of competitive pricing, policy stability, and structural growth. A key differentiator is the country’s balance between opportunity and reform, marked by gradually relaxed foreign ownership caps and ongoing regulatory enhancements that support capital market development.

What are some potential segments foreign investors are looking for?

Within the financial sector, foreign investors are primarily targeting these segments. First is digital financial services. With digital payments and e-wallet usage on the rise, Vietnam’s fintech sector remains a hotspot. Investors are particularly interested in companies with regulatory licences, strong user bases, and scalable platforms.

Second is the insurance and bancassurance segments. Strategic players are eyeing Vietnam’s underpenetrated insurance market. With only a small portion of the population currently holding insurance, the long-term growth runway is clear, especially for those with tech-driven distribution strategies.

Third is capital market infrastructure. Investments like S&P Global’s in FiinRatings highlight demand for credit agencies, data analytics, and risk management services. These are essential for attracting global institutional investors and increasing the transparency of local debt and equity markets.

Across these segments, corporate governance, digital readiness, and regulatory alignment are key characteristics that foreign buyers prioritise. There’s a clear preference for targets that not only offer growth but also demonstrate long-term operational integrity.