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Mint
25-07-2025
- Business
- Mint
Vietnamese Stocks Reach Record High on Inflows, Trade Optimism
(Bloomberg) -- Vietnamese shares rose to a record high, aided by the return of foreign fund inflows amid optimism about a trade deal with the US. The benchmark VN Index rose 0.7% to 1,531.13 at the close, surpassing its last high in January 2022. Vietnam Prosperity JSC Bank and Vinhomes JSC were among the top contributors to the gains. Foreign investors have bought about $413.7 million of Vietnamese stocks on a net basis so far this month, according to data complied by Bloomberg. The Southeast Asian nation's equities have extended a rally since early July, when President Donald Trump said he had reached a trade deal with Vietnam with a 20% tariff, which is lower than the 46% duty first announced in April. While Vietnamese negotiators said they are still working out details of an agreement, there are expectations for global investors to further expand their exposure to the country's shares. 'The strong rally is on the back of robust GDP growth and reduced uncertainties over US tariffs,' said Ruchir Desai, a fund manager at Asia Frontier Capital in Hong Kong. 'If economic momentum continues in the second half and if there is no major impact on overall export growth especially to the US, then the rally can sustain.' Vietnam is keeping its target of at least 8% gross domestic product growth this year, and will continue to strive for economic expansion of 10% or above in 2026-2030, Deputy Prime Minister Ho Duc Phoc said earlier this month. The economy expanded by 7.5% in the six months through June. (Updates with closing level) More stories like this are available on
Bangkok Post
09-07-2025
- Business
- Bangkok Post
Vietnam to draw foreign inflows on lower-than-expected US tariff
HANOI — Foreign investors are expected to flock back to Vietnam's stock market after the country received a lower-than-expected US tariff, said Thu Nguyen, deputy chief executive officer of VinaCapital Fund Management. Vietnamese stocks benefited from the return of foreign investors after US President Donald Trump announced a trade deal with the Southeast Asian nation, Thu said in an interview with Bloomberg TV 's Haslinda Amin on the sidelines of an investment summit in Hanoi. A potential FTSE Russell market upgrade will also entice investors, she added. The tariff 'was interpreted by foreigners as a good deal for Vietnam,' she said. And that has 'translated into inflows in some of the mostly liquid companies in Vietnam,' Thu said. Trump last week said a 20% tariff will be placed on Vietnamese exports to the United States, with a 40% levy on any goods deemed to be transhipped through the country. Trump said that Vietnam had agreed to drop all levies on US imports. The benchmark VN Index has risen more than 3% since then, bringing the advance so far this year to almost 13%. Foreign sentiment appears to have improved after the 20% tariff announcement on July 2, with nearly 5 trillion dong (US$191.3 million) in foreign inflows recorded as of July 4, Bloomberg Intelligence analyst Sufianti wrote in a report Wednesday. Vietnam's negotiators are still working to finalise the details of the trade deal. The 20% tariff was a significant reduction from the previously threatened 46% rate and puts it ahead of regional rivals such as Thailand, Malaysia and Indonesia, who were sent letters Monday setting out tariffs from 25% upwards. Market watchers are also optimistic of a potential reclassification of Vietnam to secondary emerging-market status from frontier in September by the London-based global index compiler. FTSE had projected that Vietnam's stocks could draw as much as $6 billion in capital inflows following an upgrade.
Bloomberg
08-07-2025
- Business
- Bloomberg
Vietnamese Stocks Rally as Tariff Tensions Shift Elsewhere
Vietnam's stocks rallied for a third consecutive day to a three-year high as trade tensions shifted to other Asian nations facing higher tariffs while waiting to strike a deal with the US. The VN Index rose 1% to the highest level since April 2022, with real estate firm Vinhomes JSC contributing most to the advance. The equities gauge for Asia Pacific stocks gained 0.3%, recovering roughly half of the previous day's losses after President Donald Trump announced bigger levies on nations that haven't agreed on a new tariff deal.
Business Times
13-05-2025
- Business
- Business Times
Vingroup's Vinpearl lists amid tariff hit to Vietnam IPOs
[HANOI] A wave of optimism that buoyed Vietnam's stock market in the first quarter of 2025 is fading fast as a harsh US tariff blow derails fundraising plans and stalls initial public offering (IPO) momentum, with hopeful aspirants now eyeing a potential rebound by year-end. 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. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 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.'
Bloomberg
08-04-2025
- Business
- Bloomberg
Vietnam Stocks Slide as Tariff Panic Continues to Grip Market
Vietnam's stocks plunged after the market reopened following Monday's holiday, continuing their selloff amid concerns over US tariffs. The benchmark VN Index tumbled as much as 5.9% on Tuesday to its lowest level since January 2024. Bank for Investment and Development of Vietnam and Bank for Foreign Trade of Vietnam were among the biggest drags on the measure.
