The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Vietnam IPOs: From pipe dreams to pipeline

Vietnam’s market is small at some 4% of GDP but it is not likely to remain that way for long. As irreversible economic reforms take hold and the government continues to privatize state assets, a lengthy pipeline of IPOs is emerging that promises to dwarf the existing market.

Buckle up and proceed with caution “The privatizations really started to pick up steam in the third quarter of last year,” says Tung Kim Nguyen, chief operating officer of local asset manager and securities company Indochina Capital in Saigon. “It’s been an assembly line. They don’t just come once, they do another [issue] and another.”

In fact, the so-called IPO market is really a unique two-stage process that entails state assets being incorporated in a process known as ‘equitization’. Shares in equitized state companies are usually sold to the public and institutional investors in an auction process conducted on an over-the-counter market. In the past, many of these companies might have remained unlisted for some time. When they do list, most have taken place as introductions rather than capital-raising exercises, one reason why the OTC market is valued at multiples of the official listed bourse.

That is beginning to change as the government pushes privatizations into near simultaneous equitizations and listings in an effort to formalize the market. Standard IPOs will probably eventually become the norm in Vietnam, something that excites Tung. “All the really big guys haven’t come to market yet.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree