Listing, state capital divestment “blockbusters” new catalysts for Vietnam's stock market

As Vietnam’s stock market enters an information lull following Q1 earnings releases and AGMs, recent news about major listing and state capital divestment plans are expected to be significant catalysts for the country's benchmark VN-Index.

On April 29, 2025, the Ho Chi Minh Stock Exchange (HoSE) officially approved the listing of Vinpearl JSC, with more than 1.79 billion shares, equivalent to a charter capital of over VND17.93 trillion ($690.6 million) based on par value. Vinpearl JSC, listed as VPL, is a hospitality subsidiary of conglomerate Vingroup.

Previously, at Vingroup's 2025 AGM, chairman Pham Nhat Vuong announced that VPL shares would debut in May 2025. Vingroup currently holds 1.5 billion VPL shares, accounting for 85.5% of Vinpearl's charter capital.

The Vinpearl listing is seen as a catalyst for the stock of Vingroup - VIC, which has gained 72.38% in the year to date, making it the third-best performer on the HoSE.

Of note, the State Capital Investment Corporation (SCIC) recently announced the first divestment list of 2025, including 31 companies, many of them are major listed firms such as FPT Corporation (FPT), pharmaceutical firm Domesco (DMC), Hai Phong Thermal Power (HND), and Quang Ninh Thermal Power (QTP).

SCIC also announced a public auction on May 12 for over 12 million DMC shares (34.71% of its charter capital), with a starting price of over VND1.53 trillion ($58.93 million) or VND127,000 ($4.89) per share, double the closing price of VND62,300 on April 29.

Other major IPOs are also in the pipeline, such as Techcom Securities (TCBS) and large firms transitioning from the Unlisted Public Companies Market (UPCoM) to the HoSE, including Masan Consumer Holdings (MCH).

These developments are expected to provide much-needed momentum for the market amid the current information gap.

According to Nguyen The Minh, head of research & development for retail clients at Yuanta Securities Vietnam, the local stock market is trapped in a cycle due to a lack of new stocks and financial products, reducing its appeal to fresh capital.

“Vietnam joined the WTO in early 2007, a time when many businesses transitioned from cooperatives and traditional models to limited liability companies or joint-stock companies. This transition partly explains why the market lacks large-scale or well-known listed enterprises,” he stated.

He emphasized that state-owned enterprises (SOEs) going public would have a strong psychological impact on the market. This was seen in the 2016-2018 period when the VN-Index surged on the back of state divestments and IPOs.

Auctions of major SOEs like dairy giant Vinamilk, brewer Sabeco, and Binh Minh Plastics attracted billions of USD in foreign capital. A domino effect followed, bringing more investment into state-backed stocks.

However, beyond the shortage of new listings, Minh pointed out that corporate transparency remains a concern, as many companies fail to fully disclose information to shareholders. He said he is hopeful that regulatory improvements - such as stricter enforcement by the State Securities Commission, adoption of the International Financial Reporting Standards (IFRS), mandatory English disclosures, and revisions to the 2019 Securities Law - will enhance market quality.

Despite the positive outlook, state capital divestments face headwinds due to massive foreign capital outflows. In 2024, foreign investors recorded a net sell of approximately VND93 trillion ($3.7 billion) on the HoSE amid widening interest rate differentials and sharp VND depreciation. In Q1/2025 alone, the net outflow exceeded $1 billion.

Adding to the challenge is the U.S. government’s reciprocal tariff policy, which negatively impacts auction demand, especially for industrial real estate firms. For instance, the planned share auction of industrial park developer Becamex IDC (HoSE: BCM) has been temporarily suspended.

The VN-Index gained 0.15% to 1,241.95 points on Tuesday, the highest since April 2, 2025. The trading value on the HoSE, on which the index is based, jumped 34% to VND17.8 trillion ($686 million).