The successful acquisitions of these companies have cast positive impacts on Sao Mai Group as they will increase the value for the members to achieve higher positions in the tourism industry in Vietnam. With the belief that “Sao Mai tourism will be a spearhead in the service sector development strategy to create new values for all satellite sectors,” Sao Mai Group boldly spent trillions of Vietnamese dong on overhaul, from infrastructure restructuring to personnel strategy.

M&A deals of An Giang Tourism Joint Stock Company and Dong Thap Tourism Joint Stock Company showed a quick action between Sao Mai Group and their owners - the State, which advocated swiftly divesting from SOEs according to the market mechanism. Sao Mai Group bought all the stake of these companies in cash. After nearly half a century of construction and development, they have now become members of Sao Mai Group to continue their missions of branding tourism and food for An Giang and Dong Thap provinces according to new mechanisms adopted by Sao Mai Group to create breakthroughs.

Conventionally, M&A is understood as mergers & acquisitions but it is manager & activity at Sao Mai Group. Active management and vibrant activity is a way to complete the market access strategy for new member companies directed by Sao Mai Group with a modern vision. M&As have helped the companies increase their competitiveness by restructuring the entire administration, investing in new facilities, expanding the market share, and flexibly holding dialogues with customers. An Giang Tourism Joint Stock Company and Dong Thap Tourism Joint Stock Company had a strong start with better business performance and better life for employees. And importantly, the two companies have contributed to economic development and local social security.

Like AngiangTourimex and DongthapTourist deals, Sao Mai Group also acquired Nhut Hong Joint Stock Company based in Ca Mau province and Phu Hung - Phu Quoc Joint Stock Company to hold control of them. When an investor reaches a certain share ownership ratio to determine key issues, Sao Mai Group created a new business entity with higher competitiveness, greater market share and better operational efficiency. Sao Mai Group took the role of a parent company: Injecting capital and figuring out medium and long-term development strategies. VND600 billion of the first phase was continuously poured into Nhut Hong to form a 60-ha new urban area in a bid to lead urbanisation in Ca Mau province. The residential area in the east of National Highway 1A was quickly added with new vitality. A series of high-quality infrastructure works was in place. Internal utilities were set up and promoted periodically. Sao Mai Group reactivated the suspended residential area project for Nhut Hong Joint Stock Company with an overall restructuring campaign from human resources and capital to regeneration plan for satellites. The southernmost province of Ca Mau caught up with the modern urban development trend with other localities with the presence of the strategic investor of Sao Mai Group.

AS soon as Nhut Hong New Urban Area was ready to welcome the first residents, Sao Mai Group continued with the plan to revitalise Phu Hung - Phu Quoc Joint Stock Company after taking over. A world-class resort called Sao Mai in Phu Quoc Resort Paradise is urgently adjusting the master plan to have an open space, preserve and promote natural masterpieces on the island. The seaside resort demonstrates Sao Mai Group’s determination to create a green architectural spotlight from its M&A deal in tourism. Sao Mai Group aspires to develop the hospitality industry with a contemporary humanistic business strategy.

The new M&A version of Sao Mai Group will not only be the matter of mergers and acquisitions, but the story of bailing out falling enterprises amidst economic downturn to salvage lots of workers long devoted to those companies.
N.Nga