Volatile stock market sees Vietnamese firms exit billion-dollar club

Many large-cap Vietnamese enterprises have been forced to leave the billion-dollar club due to stock market volatility.

As of the end of June 20, there were 49 firms with a market cap of over $1 billion listed on three Vietnamese exchanges, down 13 since the beginning of the year.

In particular, DIC Corp, Thaiholdings, Gelex, Oricombank, LienVietPostBank, Kinh Bac City Development, Sonadezo, and FPT Telecom are among the most famed corporations whose value fell below the billion-dollar mark.

Stock market turmoil, stagnant liquidity, bond market woes, and the U.S Federal Reserve's interest rate hike have all hindered capital flow into Vietnamese bourses, knocking all securities businesses off the list, including Viet Capital Securities, SSI Securities, and VNDirect.

In the opposite direction, REE Corp and Phu Nhuan Jewelry were two companies successfully entering the list.

Vietnam's total stock market capitalization was VND5,030 trillion ($216.5 billion) as of Monday, down 35% from the end of 2021. Of this, the billion-dollar club was responsible for 84.9%, or nearly VND4,270 trillion ($183.8 billion).

Of the 49 billion-dollar enterprises, 40 derived from Ho Chi Minh City Stock Exchange, eight were listed on Unlisted Public Company Market, while Hanoi Stock Exchange recorded only one left.

Vietcombank is currently Vietnam’s largest listed company by market cap with nearly VND360,000 billion ($15.5 billion).

Vingroup and its real estate developer Vinhomes came in second and third, with VND288,333 billion ($12.4 billion) and VND283,034 billion ($12.2 billion). The remaining top 10 were PV Gas, Masan Group, BIDV, Vinamilk, Novaland, VPBank, and Techcombank respectively.

Banking maintained its domination of the list, with 17 representatives totalling VND1,960 trillion ($84.37 billion), accounting for about 27% of Vietnam's stock market cap. This was followed by the real estate group, with nine billion-dollar corporations, making up 14% of the market value.

With total capitalization of VND655,500 billion ($28.2 billion), Vingroup and its subsidiaries, namely Vinhomes, Vincom Retail, and Vefac, account for 6% of the entire market. The conglomerate's position has weakened as more banks and large firms went public.