HÀ NỘI — Over the past few years, Việt Nam’s stock market has seen a notable decline in large-scale Initial Public Offerings (IPOs), raising concerns about the development of the capital market.The primary reason for this downturn appears to be the country’s stringent listing requirements, which, while aimed at maintaining market stability and protecting investors, have also made it difficult for companies, especially in the technology sector, to go public, said experts.At a recent financial conference in HCM City, Don Lam, CEO of VinaCapital, highlighted the clear reduction in IPO activity in Việt Nam.According to Lam, IPO values have only ranged between US$15 million and $70 million annually since 2019. This marks a significant drop from the robust years before, where IPO values ranged from $500 million to $2.6 billion.The scarcity of major IPOs has had a noticeable impact on Việt Nam’s stock market, leading to declining interest from foreign investors.Currently, foreign trading accounts represent just 0.5 per cent of total accounts, with foreign participation steadily diminishing, he added.Further data from FiinGroup reinforces this concerning trend.In 2018, international investors accounted for 30 per cent of the domestic market’s total stock transactions. By 2022, this figure had plummeted to just 14.8 per cent. This percentage is alarmingly low compared to other ASEAN-5 markets, where foreign investors account for over 40 per cent of total transactions.Experts said that the absence of high-quality IPOs has made Việt Nam’s stock market less attractive to major international investors, contributing to the stagnation of the VN-Index over the past two decades.While other regional markets have evolved, Việt Nam has struggled to maintain momentum in its equity markets.The absence of tech IPOsOne of the most striking aspects of the country’s IPO drought is the lack of technology companies making their public debut.On another conference about the matter held in Hà Nội, Nguyễn Ngọc Anh, CEO of SSI Asset Management (SSIAM), pointed out that Việt Nam has not witnessed any significant tech IPOs in the past decade. Even during the country’s IPO boom between 2017 and 2019, the technology sector remained absent from the public markets.This is in sharp contrast to Indonesia, where tech unicorns like GoTo Group and Bukalapak successfully listed, raising billions of dollars and strengthening their positions in the global market.Anh stressed that with international investors, there was a clear willingness to invest in promising technology companies in Việt Nam. However, the paradox lies in the fact that there are currently no suitable firms available for investment.Among the VN30, which represents the top 30 companies in terms of market capitalisation on the stock market, there is only one technology name, FPT Corporation, and its market cap makes up only 5 per cent of the VN30. (ICE HO CHI MINH CITY)

Fonte notizia: Vietnam News