Investors wait for a boost in the IPO market

   The approved plan outlines the upcoming public offering, expected to take place either in the fourth quarter of 2024 or the first quarter of 2025. The IPO landscape in Vietnam has weathered a subdued phase following the outbreak of the COVID-19 pandemic, with State-owned enterprises largely absent from the public market limelight. Instead, private enterprises have taken centre stage, with notable examples such as the recent offering by DNSE Securities JSC, which sought to sell 30 million shares to investors, symbolising the resilience and adaptability of the private sector in challenging times. 

   As the year 2024 draws to a close, the Vietnamese market is on the brink of an IPO resurgence, with policymakers focusing on enhancing transparency and streamlining administrative procedures to encourage IPO activities that align seamlessly with listing requirements. Not long after the National Assembly officially approved revisions to nine laws, including the Securities Law, a draft mending Decree 155/2020/ND-CP, which details the implementation of specific provisions of that law, is currently undergoing review by the Ministry of Finance and the State Securities Commission of Vietnam. The proposal to streamline the listing process from a lengthy 90 days down to just 30 days has ignited optimism among investors, promising enhanced rights protection and potentially serving as a catalyst for more businesses to take the leap into the public market. By shortening the securities listing process and eliminating unnecessary bureaucratic hurdles, regulatory authorities aim to bolster investor protection and foster a more efficient trading environment within the organised market. In the draft amendment to Decree 155, a key focus is expanding market access for foreign investors, especially in upgrading the market from frontier to emerging status. Projections indicate increased foreign investment post-Vietnam’s emergence as a new market, yet the challenge remains in identifying specific avenues for foreign capital deployment once the stock market achieves secondary emerging market classification. The lack of available stocks in this sector poses challenges for foreign investors seeking to deploy capital efficiently.

According to Nguyen The Minh, director of Analysis at Yuanta Securities Vietnam, once FTSE upgrades Vietnam’s market status, its market capitalisation will be compared against peers. The evolving landscape of Vietnam’s financial market paints a compelling narrative of growth and opportunity for both local and international investors.