Goldman’s TLC deal flags foreign interest in Vietnam

vietnam real estate

Vietnam has become a hotbed of international interest for land and construction transactions, said a lawyer with Indochine Counsel who recently advised domestic construction and engineering company TLC Modular in selling its majority stakes to Goldman Sachs Asset Management.

Indochine Counsel partner Phan Anh Vu led the team in Ho Chi Minh City that comprised associates Dang Hoan My and Truong Cong Thanh. The transaction involved the internal restructuring of TLC and a complex arrangement for a long-term relationship, where Goldman Sachs recapitalises TLC to enable the business to grow to meet opportunities in global markets.

“We are witnessing a raft of investment opportunities and M&A activities for foreign investors in the most lucrative sectors in Vietnam such as real estate, renewable energy, logistics, pharmaceutical, retail, education, and banking and finance,” Phan told Asia Business Law Journal.

“Real estate, as a high-growth sector, also stimulates the development of the construction market through consulting, building, etc., with more opportunities for foreign companies, especially in projects of high technological intensity.”

Citing a recent report by Fitch Solutions on the outlook for Vietnam’s construction and infrastructure sector, Phan said he expected more foreign investors to join Vietnam’s construction market, buoyed by the gradual opening up of Vietnam’s economy to foreign investors and the government’s emphasis on infrastructure development.

In Vietnam, TLC has three subsidiaries engaged in the production and export of prefabricated steel modules for housing and hotels. The investment and finance support from Goldman Sachs will support the expansion of TLC to meet significant demand.