Large FIEs preparing for IPOs in Vietnam

Large FIEs preparing for IPOs in Vietnam

Vietnam has reached a consensus on allowing large foreign-invested enterprises to conduct IPOs and list on the domestic stock market, with a number of major candidates already preparing listing applications, according to the State Securities Commission.

Large foreign-invested enterprises will be allowed to conduct IPOs and list on Vietnam’s stock market. Photo: VIF

Speaking at the Vietnam Investment Forum on June 11, Bui Hoang Hai, vice chairman of the State Securities Commission (SSC), said the move was expected to broaden the supply of quality stocks and further enhance the attractiveness of Vietnam’s capital market to both domestic and international investors.

The announcement comes as Vietnam accelerates efforts to modernise its capital market and introduce a range of new financial products and trading platforms.

According to Hai, the SSC and the Ministry of Finance are working closely with the Vietnam Exchange and stock exchanges to launch several new markets, including a carbon credit trading market, which could begin operating as early as this month. Authorities are also developing roadmaps for an innovation enterprise trading platform and a digital asset market.

Regarding digital assets, the securities regulator has granted initial approval to five organisations to establish operating entities and invest in technology infrastructure. Once these organisations complete their capital contributions and technological systems, Vietnam could see the launch of its first official digital asset market.

The SSC also expects to introduce a series of new market indices after September to diversify investment funds and provide additional benchmarks for fund managers tracking the Vietnamese market.

At the same time, authorities are accelerating the deployment of a central counterparty clearing mechanism, which is expected to be operational by early 2027 at the latest.

Several modern trading mechanisms are also being introduced, including omnibus accounts, the removal of pre-funding requirements, and enhanced connectivity with global brokerage firms.

According to Hai, foreign investor interest in Vietnam’s stock market has reached an unprecedented level.

“In addition to passive investment institutions such as major global index-tracking funds including Vanguard, BlackRock, State Street, UBS, and JP Morgan, we have also received strong interest from sovereign wealth funds, national investment funds, and active fund managers from various countries,” he said.

The SSC views Vietnam’s stock market as evolving beyond a conventional investment channel to become a critical source of capital for the broader economy.

Vietnam’s equity market capitalisation currently stands at around 80 per cent of GDP. Including government bonds, corporate bonds, and private placements, the size of the capital market is estimated at 110-120 per cent of GDP.

VIR