Private Equity in Vietnam 2025

Vietnam entered 2025 on strong economic footing, with GDP growth reaching 7.09% in 2024—among the highest in Southeast Asia—driven by robust manufacturing, consumption, and investment. FDI inflows remained resilient, totaling USD 38.2B in registered capital, led by investments in manufacturing, real estate, and renewable energy. Despite volatility in capital markets, investor confidence is buoyed by Vietnam’s expected upgrade to emerging market status and long-term growth outlook. Notably, digital economy and AI adoption are emerging as key growth drivers, positioning Vietnam as a strategic hub in the region for innovation and tech-driven investment.

Vietnam’s PE market in 2024 continued to face headwinds, recording only 31 deals with a total disclosed value of USD326 million—down sharply from 2023 due to the absence of large-scale transactions. Technology led in deal count, while Retail and Healthcare dominated in value. Notable deals included Warburg Pincus's investment in Xuyen A Hospital and CDH’s acquisition in Bach Hoa Xanh. However, early 2025 brought renewed optimism, marked by Techcoop’s USD 70 million Series A round—one of Southeast Asia’s largest in agritech—signaling growing investor appetite for scalable, tech-driven opportunities.

In 2024, 61% of surveyed PE managers engaged in fundraising activities, but 64% of them reported falling short of their fundraising targets. Key challenges included LPs reducing allocations to frontier markets, macroeconomic volatility, and extended exit timelines. However, outlook for 2025 is optimistic—nearly half of respondents expect fundraising to grow by over 15%, driven by improved macro conditions, a more open LP risk appetite, and Vietnam’s anticipated emerging market upgrade. 

Healthcare, technology, and education emerged as the most attractive sectors for PE investment in Vietnam over the next 12 months, reflecting investor preference for industries with strong scalability, resilience to economic cycles, and long-term growth potential. These priorities align with structural shifts in consumer behavior, digital transformation, and workforce upskilling. Transportation & logistics also remains a key focus, driven by Vietnam’s role in global manufacturing and rising demand for cold chain and last-mile delivery solutions.

Vietnam’s valuations in 2024 followed the global contraction trend, reflecting cautious sentiment among PE investors amid broader economic headwinds. However, sentiment for 2025 is improving: 94% of surveyed PE investors expect valuation multiples to rise, driven by stronger sector growth potential, improved macro conditions, and ongoing economic reforms. While global uncertainties and interest rate trends remain key risks, Vietnam’s solid fundamentals and policy outlook continue to support investor confidence.

Survey findings reveal a clear shift in value creation priorities for PE investors in Vietnam—from stabilization and cost efficiency (2023–2024) to growth and scalability (2025–2026). This transition reflects rising investor confidence in Vietnam’s macro outlook and signals a move toward scaling investee companies. Market expansion, corporate governance, and digital transformation are expected to drive future value creation, replacing earlier focuses on restructuring and cash flow management.

AI adoption is accelerating among PE firms in Vietnam, with 82% of respondents recognizing its importance and 85% having implemented or planning to implement AI-driven tools. Data analytics and AI-powered insights are expected to reshape value creation strategies, particularly in portfolio management, deal sourcing, and due diligence. This trend signals a broader shift from operational efficiency toward technology-driven decision-making and competitive differentiation.

Exit conditions remain challenging for PE investors in Vietnam, with 64% expecting delays of up to one year or more, primarily due to valuation mismatches and market uncertainty. Despite timing concerns, return expectations remain broadly optimistic, with over 75% of respondents anticipating IRRs above 20%. Trade sales and secondary buyouts are now the most preferred exit strategies, while IPOs have lost appeal due to stricter listing requirements and limited post-listing access for foreign investors. This shift reflects a growing  preference for faster, more predictable exit routes.