Vingroup's Vinpearl lists amid tariff hit to Vietnam IPOs
Several high-profile listings on the Ho Chi Minh City Stock Exchange (HoSE) this year, including Masan Consumer and Techcombank Securities, are now on hold until the last quarter of this year, with issuers citing the impact of US reciprocal levies of up to 46 per cent on Vietnam and volatile market conditions.
'Our IPO is tentatively planned for the end of this year. However, the exact timing will depend on financial market conditions, the impact of (US) reciprocal tariffs, and the pace of Vietnam's stock market upgrade,' Ho Hung Anh, chairman of Vietnamese private lender Techcombank, parent of the brokerage firm Techcombank Securities, said at last month's shareholder meeting in Hanoi.
Investor sentiment took a hit in April, with the benchmark VNIndex sliding 6.2 per cent month on month, wiping out earlier gains. The index, which gained 4 per cent by the end of March, slipped to a year-to-date loss of 3.2 per cent by Apr 29, before rebounding to a 1.3 per cent gain on May 12.
Before the latest headwinds, several Vietnamese companies had already taken key preparatory steps, signalling a potentially more vibrant listing market in 2025 after a prolonged slowdown that saw just one IPO in 2024.
Across South-east Asia, the IPO market was also sluggish last year with 136 IPOs versus 163 in the preceding year, based on a Deloitte report.
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On Jan 17, Binh Son Refining and Petrochemical – majority owned by state oil firm PetroVietnam – transitioned from the secondary Unlisted Public Company Market (UPCoM) to the HoSE. The company operates the US$3 billion Dung Quat Refinery, the country's second-largest oil refinery.
Momentum continued in February with HoSE-listed Becamex IDC announcing plans for a share issuance worth 20.88 trillion dong (S$1 billion) on Apr 28. However, roughly two weeks after US President Donald Trump announced his tariff tantrum, the state-backed industrial park developer decided to push back the share sale to a time it deems 'more suitable'.
Meanwhile, in March, Masan Consumer shareholders approved the delisting of the company's shares from UPCoM to prepare for a blockbuster public listing on HoSE. The ownership of a major shareholder was also adjusted to meet the requirements for the move.
However, due to volatile global market conditions, the IPO of the consumer goods subsidiary of Vietnamese retail giant Masan Group is reportedly being pushed to the fourth quarter instead of the second quarter as earlier announced.
'The market is currently a lot more challenging,' said Michael Hung Nguyen, deputy chief executive at Masan Group, during a conference in Hanoi on Apr 22. 'You don't want to be the only guy going to the market… We would like to see other peers making the market more active for us.'
Vinpearl appears to be leading the charge.
On May 13, the hospitality arm of Vietnam's largest private conglomerate Vingroup, became the first major listing in the wake of the tariff-driven turbulence. It floated 1.8 billion shares on HoSE, bringing its market capitalisation to nearly as high as 153 trillion dong in the first trading session.
The stock offering followed a successful rights issue in February, during which the firm raised more than five trillion dong.
Turning point
Market observers anticipate a turning point in Vietnam's IPO landscape by late 2025 amid the government's push to bolster the private sector and strengthen the domestic economy to mitigate external shocks.
'A key driver of the anticipated rebound is firms' urgent demand for capital,' said Tyler Nguyen, chief market strategist at Ho Chi Minh City Securities Corporation. 'We also expect improved approval processes and a stronger institutional focus on facilitating capital market access.'
However, Nguyen said an unfavourable trade deal with the US could weaken investor sentiment in Vietnam, potentially delaying IPO timelines or complicating the book-building process.
'The strength of any IPO recovery will heavily depend on the outcome of ongoing trade negotiations between Vietnam and the US,' he added.
In light of this context, an increasing number of companies, including commercial lenders VietABank, BVBank, Saigonbank, and Kienlongbank, have announced plans to upgrade from UPCoM to the country's main bourses in the latter half of this year.
'This strategic transition marks a significant advancement in corporate governance maturity, strengthens brand visibility, and signals these companies' readiness to capitalise on anticipated increases in capital inflows,' said Bui Van Trinh, transactions accounting support partner at Deloitte Vietnam.
'Looking ahead, sectors likely to lead the IPO recovery include financial services and, in the long run, technology – all aligned with Vietnam's broader shift up the value chain,' he added.
Upside for startup listings
At the other end of the spectrum, local tech startups are eagerly awaiting positive developments as Vietnam is actively exploring a specialised secondary bourse within its planned International Financial Centres (IFC) in Ho Chi Minh City and Da Nang.
This aims to enable high-growth companies to raise funds through public listings based on revenue potential or innovation capacity rather than profitability, which is currently a key criterion for domestic IPO.
The proposed board would introduce simplified disclosure requirements, tech-specific valuation metrics, and streamlined post-listing obligations, as part of broader IFC initiatives to attract investment and improve market liquidity, including a pilot crypto exchange.
However, experts warned of existing challenges, including domestic investors' limited understanding of pre-profit valuations, immature risk assessment frameworks, and the need for stronger legal protections for public shareholders.
Chris Milliken, a partner at Baker McKenzie, noted that foreign investors may face obstacles when investing in Vietnamese companies of various sizes and stages due to certain unfamiliar local regulations. These include foreign ownership limits, sector-specific licensing requirements, and transaction practices that differ from international norms.
'Investing in Vietnam certainly involves some careful upfront thinking and strategising both about the incoming investment and also about a future exit,' he said. 'If foreign investors can see that there are meaningful and compelling pathways to exit investments in Vietnam through capital markets, then more foreign investors will want to invest.'
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