A Southeast Asia initial public offering (IPO) report published by Deloitte in late January provided a comprehensive update on a subdued year in the capital market, highlighting that Vietnam had only one IPO in 2024, raising approximately $37 million, while Malaysia, Indonesia, and Thailand accounted for 93 per cent of the region’s IPO proceeds.

Malaysia recorded 55 IPOs in the past year, followed by Indonesia with 41 IPOs, and Thailand with 32 IPOs, raising $1.7 billion, $903 million and $811 million, respectively.

Deloitte’s report indicates Vietnam’s IPO market capitalisation remained modest at $135 million, the lowest in Southeast Asia in 2024.

“Remarkably, this single IPO, which is also Vietnam’s first in the fintech sector, has surpassed the country’s market performance for the entire year of 2023 and is approximately five times the average fund raised from an IPO during the 2021–2023 period,” Deloitte’s report said.

Despite the limited number of IPOs and relatively low market capitalisation, Vietnam recorded the most impressive growth in capital raised, achieving a 429 per cent increase compared to 2023.

“Although the Vietnamese economy encountered challenges in 2024, it is still believed to be a good time for both existing and potential investors to join the market,” said Bui Van Trinh, transactions accounting support partner at Deloitte Vietnam. “The anticipation is backed up not only by favourable macroeconomic conditions, including a controlled inflation rate and low interest rates, but also by progressive regulatory changes designed to attract more foreign investment and facilitate deeper integration into the global economy. The unanimous sentiment is that the best is yet to come.”

Deloitte’s report also noted that, in addition to the traditional IPO route for stock exchange listings, Vietnamese companies have also opted for an alternative but increasingly popular approach, IPO by introduction.

“Under this approach, companies must first have their public interest entity application approved by the State Securities Commission (SSC) before registering to trade on the Unlisted Public Company Market (UPCoM). After two years, these entities can apply to be listed on one of the two main boards in Hanoi and Ho Chi Minh City, according to the Law on Securities,” Deloitte said.

Experts consider 2024 a necessary cooldown period, setting the stage for stronger and more sustainable IPO acceleration in 2025.

A representative from Yuanta Securities Vietnam, believes that Vietnam’s IPO market will gain momentum in 2025.

“There are multiple drivers for the market to rebound in 2025. First and foremost, Vietnam’s economic growth is projected at 7.5-8 per cent, with ambitions to reach double-digit GDP growth,” the representative said. “Additionally, the anticipated recovery of the real estate market in the latter half of 2025, supported by the government’s strong push for legal reforms, will stimulate capital-raising through the stock market.”

He expects foreign investors to return to Vietnam’s stock market in 2025, with a rise of state-owned enterprise listings and the transition of companies from the UPCoM to the Ho Chi Minh Stock Exchange (HSX) acting as key drivers for foreign net buying.

“Furthermore, market reclassification will serve as an additional catalyst for IPOs seeking opportunities in the capital market. Approximately $47.5 billion in IPO proceeds is expected over the next three years,” the representative added.

At its Investor Day 2025 event held on February 7, Masan Group’s leadership shared insights into the group’s business activities, its subsidiaries, its 2025 strategic direction, and its IPO and listing transition plans for Masan Consumer (MCH), which is currently trading on UPCoM.

Deputy CEO Michael Hung Nguyen emphasised that shifting to the HSX would unlock greater value for its investors, enhance operational efficiency, and expand access to capital markets.

“Essentially, this plan grants us better access to capital markets. Our target remains to IPO MCH in 2025, depending on market conditions. We are committed to delivering meaningful initiatives for our investors while striving to achieve our set objectives,” he said.

Insights from the event, hosted by Dragon Capital, indicate that in addition to new IPO developments, the transition of major enterprises such as Airports Corporation Of Vietnam, Binh Son Refining and Petrochemical, and MCH from the UPCoM to the HSX will expand Vietnam’s stock market capitalisation by approximately $20 billion in the coming years.

The SSC is currently reviewing and revising regulations to integrate the IPO and listing processes into a single streamlined procedure, which could provide a more favourable legal framework for large enterprises to list sooner than expected.

Moreover, the upcoming rise of state-owned listings, planned by State Capital Investment Corporation in the next three years, is expected to be a major driver of foreign capital inflows. Market reclassification will also be a key factor in accelerating IPO activity.

Based on current market trends, Dragon Capital forecasts that Vietnam’s IPO market will continue its upward trajectory and experience significant growth in 2027-2028, with estimated proceeds reaching $47.5 billion. Within this figure, financial services, fintech, and consumer sectors are expected to account for a substantial portion of high-value IPOs.

“IPOs projected over the next 2-3 years from Techcom Securities and VPS Securities are expected to contribute $5 billion in capital raised. The fintech and IT services sector, including IPOs from Viettel IDC, VNG, Visa, and VNPay, is anticipated to generate around $4.7 billion,” said Le Anh Tuan, chief investment officer at Dragon Capital.