Vietnam's main bourse sees few entrants as stock market upgrade desired

By Ngoc Diem, Hai Yen
Tue, June 18, 2024 | 9:50 pm GMT+7

Just one new ticker has landed on the Ho Chi Minh Stock Exchange (HoSE) this year, experts say, a worrisome development given that Vietnam is pursuing a market status upgrade by FTSE Russell from “frontier” to “emerging”

 An investor tracks stock prices. Photo by The Investor/Trong Hieu.

An investor tracks stock prices. Photo by The Investor/Trong Hieu.

Unfavorable listing conditions have resulted in a scarcity of new entrants to Vietnam’s main bourse, they say, noting that the number of new tickers and fund certificates listed on HoSE has significantly declined from 26 stock symbols and five fund certificates in 2020 to five tickers and four fund certificates in 2023.

The lone ticker to list on HoSE so far this year is MCM of Moc Chau Dairy Cattle Breeding JSC, which will officially go public on June 26 at a price of VND42,800 ($1.68) a share.

The HoSE has listing applications from 14 local companies in hand, including four submitted this year by DSC Securities Corporation, DNSE Securities JSC, Gelex Electric JSC, and Hoang Gia Production and Investment JSC.

The pending applications include several banks like VietBank, BVBank, SaigonBank, and ABBank. The banks’ executives have said the listing process has stalled because of unfavorable market conditions and cumbersome listing procedures.

To deal with the situation, Le Thi Le Hang, CEO of SSI Asset Management Company Limited (SSIAM), suggests that Vietnam scrap pre-funding requirements for foreign investors and devise measures for handling trade failures as required by FTSE Russell, one of two agencies that award stock market status upgrades.

Hang also recommends raising foreign ownership caps.

Vietnam accounts for 36% of the MSCI Frontier Market Index and contributes 20 constituents to foreign portfolios. In the event of an upgrade, the current foreign limit would cause the frontier share to increase but the number of constituents to slump to 10-11, Hang notes with concern.

The local stock market is too centralized and void of opportunities for investment, she asserts. Major funds’ investment portfolios overlap on five to 10 tickers due to the limited options available.

Hang also suggests Vietnam’s market watchdog accelerate the listing of major firms on local bourses.

Comments (0)
  • Read More
ASEAN members agree to build safe digital environment

ASEAN members agree to build safe digital environment

Thai Deputy Prime Minister and Minister of Digital Economy and Society Prasert Jantararuangtong said that participants at the 5th ASEAN Digital Ministers Meeting (ADGMIN) have agreed that online fraud and call center gangs are urgent issues that require a collective effort to address.

Southeast Asia - Mon, January 20, 2025 | 8:20 pm GMT+7

Thailand to have first FTA with Europe’s trade bloc EFTA

Thailand to have first FTA with Europe’s trade bloc EFTA

A free trade agreement between Thailand and the European Free Trade Association (EFTA), including Switzerland, Norway, Iceland and Liechtenstein, will be signed in Davos on Thursday, becoming the first pact of its kind between the Southeast Asian country and the trade bloc.

Southeast Asia - Mon, January 20, 2025 | 8:16 pm GMT+7

Suntory Pepsico to up output of northern Vietnam factory by 65%

Suntory Pepsico to up output of northern Vietnam factory by 65%

Suntory Pepsico Vietnam Beverage (SPVB) is seeking permission to increase the output of its factory in Vietnam’s northern province of Bac Ninh by 65%, from 500 million to 825 million liters a year.

Industries - Mon, January 20, 2025 | 7:35 pm GMT+7

State utility EVN signs feasibility study contract for $2.1 bln LNG power plant

State utility EVN signs feasibility study contract for $2.1 bln LNG power plant

Power Project Management Board 2, under state utility Vietnam Electricity (EVN), has signed a consulting contract for the $2.1 billion Quang Trach II LNG-fired power plant's feasibility study report.

Energy - Mon, January 20, 2025 | 4:43 pm GMT+7

Vietnamese lender SeABank reports $239 mln profit in 2024

Vietnamese lender SeABank reports $239 mln profit in 2024

Vietnamese private creditor SeABank recorded VND6,039 billion ($238.5 million) in pre-tax profit in 2024, up 31% year-on-year.

Banking - Mon, January 20, 2025 | 4:07 pm GMT+7

Vietnam to add biomass power to DPPA: draft decree

Vietnam to add biomass power to DPPA: draft decree

Vietnam’s Ministry of Industry and Trade plans to add biomass power to the direct power purchase agreement (DPPA) mechanism, according to its draft decree to replace Decree 80/2024 on DPPA mechanism.

Energy - Mon, January 20, 2025 | 12:39 pm GMT+7

Dairy giant Vinamilk contributes $70 mln to shareholder Fraser and Neave's profit in fiscal year 2024

Dairy giant Vinamilk contributes $70 mln to shareholder Fraser and Neave's profit in fiscal year 2024

Vinamilk, one of the biggest dairy firms in Vietnam, contributed SGD95 million ($69.5 million) to the profit before interest and tax (PBIT) of shareholder Fraser and Neave (F&N) in fiscal year 2024 (October 2023-September 2024).

Companies - Mon, January 20, 2025 | 11:49 am GMT+7

Korean bank Shinhan, Vietnam insurer PJICO ink strategic cooperation deal

Korean bank Shinhan, Vietnam insurer PJICO ink strategic cooperation deal

South Korea’s Shinhan Bank Vietnam Limited and Petrolimex Insurance Corporation (PJICO) have signed a strategic cooperation agreement to leverage the potential of both sides.

Banking - Mon, January 20, 2025 | 11:17 am GMT+7

Czech conglomerate PPF urged to expand operation in Vietnam after Home Credit Vietnam stake sale

Czech conglomerate PPF urged to expand operation in Vietnam after Home Credit Vietnam stake sale

The Czech Republic’s multinational conglomerate PPF Group should expand its operation in Vietnam after selling its entire stake in subsidiary Home Credit Vietnam to Thailand's Siam Commercial Bank (SCB), Prime Minister Pham Minh Chinh said in Prague on Sunday.

Finance - Mon, January 20, 2025 | 10:01 am GMT+7

Vietnam's fertilizer exports hit nearly $710 mln in 2024

Vietnam's fertilizer exports hit nearly $710 mln in 2024

Vietnam's fertilizer exports totaled approximately 1.73 million tons in 2024, generating nearly $710 million in revenue, with an average price of $411.1 per ton.

Economy - Mon, January 20, 2025 | 9:08 am GMT+7

Vietnam holds potential to become Czech carmaker Skoda's manufacturing hub in ASEAN: exec

Vietnam holds potential to become Czech carmaker Skoda's manufacturing hub in ASEAN: exec

Vietnam boasts great potential to become an auto export and manufacturing hub of the Czech Republic’s Skoda Auto in ASEAN and other markets, said its chairman Klaus Zellmer.

Industries - Sun, January 19, 2025 | 11:30 pm GMT+7

Vietnam PM calls on Czech giant Sev.en Global to expand investment into wind, solar power

Vietnam PM calls on Czech giant Sev.en Global to expand investment into wind, solar power

The Czech Republic’s Sev.en Global Investments, given its strengths, should expand investment in Vietnam into areas like wind and solar power, culture and sports, and football, said Prime Minister Pham Minh Chinh.

Industries - Sun, January 19, 2025 | 10:59 pm GMT+7

Northern Vietnam port operator posts record revenue, profit in 2024

Northern Vietnam port operator posts record revenue, profit in 2024

Hai Phong Port JSC, headquartered in the northern city of Hai Phong, reported total throughput of nearly 40 million tons in 2024, with revenue reaching nearly VND3 trillion ($118.44 million) and pre-tax profit estimated at VND1.16 trillion ($45.8 million).

Companies - Sun, January 19, 2025 | 4:07 pm GMT+7

Vietnam's new regulations in energy, mineral and construction sectors

Vietnam's new regulations in energy, mineral and construction sectors

The Vietnamese government recently introduced the amended PDP8 implementation plan, the tariff for rooftop solar energy in 2025, new rules on management of construction activities, and the new Law on Geology and Minerals. Vilaf law firm provides analyses on these newly-promulgated regulations.

Consulting - Sun, January 19, 2025 | 1:38 pm GMT+7

Indonesia prepared for impacts of US trade policies

Indonesia prepared for impacts of US trade policies

Indonesian Minister of Trade Budi Santoso has affirmed his country's readiness to address potential impacts of a trade war between the U.S. and China when Donald Trump assumes the presidency.

Southeast Asia - Sun, January 19, 2025 | 12:34 pm GMT+7

Japan's Itochu acquires 20% stake in Thai non-life insurance company

Japan's Itochu acquires 20% stake in Thai non-life insurance company

Japanese trading firm Itochu is set to purchase a 20% stake in Thailand's non-life insurer Thaivivat Insurance, a deal that highlights the global investor’s interest in the Southeast Asian country’s growing insurance market.

Southeast Asia - Sun, January 19, 2025 | 12:29 pm GMT+7