Private Equity 2022

1. What proportion of transactions have involved a financial sponsor as a buyer or seller in the jurisdiction over the last 24 months?

Financial sponsors have been becoming more active in Vietnam in recent years. Especially buyout funds and growth PE funds have orchestrated some large deals in a growing number of domestic industries. As the Vietnamese PE market matures and thus becomes more accessible to foreign capital, these trends will likely continue.

Despite those recent trends, the number of financial sponsors in the Vietnamese market is still comparatively limited. The local banking and financial sectors are under strong scrutiny from the State Bank of Vietnam (SBV) and are subject to various restrictions. The direct involvement of local banks in Vietnamese transactions as buyers or sellers is, thus, an exception. Foreign financial sponsors are becoming keener to do deals in Vietnam. Nevertheless, they often fall short of their goals due to