Successful M&A strategy for green building projects

The 16th Vietnam M&A Forum, themed “A Blossoming Market,” attracted over 650 speakers and more than 7,500 senior leaders from investment funds, consulting organisations, corporations, and businesses from Vietnam and abroad. Organised by Vietnam Investment Review under the auspices of the Ministry of Planning and Investment, the prestigious annual event delved into emerging M&A opportunities arising from increased international capital flows, government incentive policies, and attractive business valuations. It also explored the rapid growth of key sectors such as real estate, retail, technology, renewable energy, financial services, and logistics.

More gains than losses

During the forum, Luu Thi Thanh Mau recounted Phuc Khang Corporation’s partnership with Japan’s Mitsubishi Corporation, which began six years ago. The two companies collaborated to develop the Diamond Lotus project on Le Quang Kim Street in Ho Chi Minh City’s District 8. This partnership led to the establishment of Phuc Khang Mitsubishi Corporation Holding (PKMC) in December 2017 to co-develop the Diamond Lotus product line in line with LEED standards—a globally recognised green building certification.

“Foreign investors, particularly Japanese investors, are very demanding,” Mau said. “However, once you become their partner, the benefits they bring can significantly grow your business.”

Mau said that companies must establish objectives that go beyond financial gains, as well as develop a skilled, internationally adaptable workforce to avoid failure. Efforts should focus on creating learning organisations with leaders who possess a strong learning spirit.

She also emphasised the importance of preparation, including transparency and robust internal discipline. Mau recalled Phuc Khang’s collaboration with Mitsubishi, where the company responded to an urgent email request at 2 a.m. during the Vietnamese New Year holiday—demonstrating the commitment required to foster a successful partnership.

Rather than waiting for opportunities, firms should actively seek and leverage resources to strengthen their business operations. Mau noted that successful M&A deals often stem from pure motivations and wholehearted dedication, even if initial profits are modest. She cited the company’s partnership with Mitsubishi as an example, where they received $4 million by exceeding expectations.

Special attention to green projects

On the sidelines of the forum, Mau reiterated Phuc Khang Corporation’s strategy of leveraging foreign resources by fostering partnerships with investors from Japan, Singapore, South Korea, the US, and Europe.

The green real estate sector is witnessing a surge in M&A activity as businesses and governments increasingly commit to sustainable development and carbon emissions reduction. Green and low-carbon building projects not only bring environmental benefits but also create attractive investment opportunities in the long term.

According to Mau, supportive government policies such as tax incentives and financial assistance for carbon offsetting and environmental protection projects are driving growth in this field. Additionally, consumers and investors are placing greater value on sustainable products, services, and projects. Sustainable developments reduce operational costs, such as energy and water usage, while creating long-term value for investors. Moreover, transitioning to low-carbon economic models helps businesses manage risks associated with climate change, stricter environmental regulations, and changing consumer behaviours.

Phuc Khang Corporation has been a pioneer in green building development, adhering to LEED and LOTUS standards. Its projects focus on sustainable locations, efficient water and energy usage, eco-friendly materials, and indoor air quality. The Diamond Lotus Riverside project, developed in partnership with Mitsubishi, is a notable example of the company’s success.

“For successful M&A, pure motivations must be combined with disciplined management and a commitment to community values. Phuc Khang is dedicated to elevating Vietnamese brands globally by delivering standard green building products,” Mau said.

Phuc Khang Corporation develops green high-rise buildings as part of its development strategy to ensure living space and environmental benefits.

According to a report by the Ministry of Construction, by the end of the third quarter of 2024, the number of green buildings in Vietnam had reached approximately 500, with a total floor area exceeding 12 million square metres. This achievement is the result of favourable government policies and active involvement from diverse stakeholders.

Pioneering companies from various sectors shared their journey in spearheading green and digital transformation at a VIR sustainable development conference on November 12.