The entry of large, high-quality companies into Vietnam’s stock market is expected to boost its appeal and accelerate its push toward emerging-market status.
In August 2024, Binh Son Refining and Petrochemical Co. (BSR) submitted its listing application to the Ho Chi Minh City Stock Exchange (HoSE), signaling the possible rise of a new generation of Vietnamese blue chips. If approved, BSR could join major firms in the VN30 index. Other major companies such as ACV, VEA, MCH, and VGI are also potential candidates but face regulatory or financial hurdles.
Analysts say state-owned enterprises often struggle with audit and valuation issues, while private firms may delay listing for strategic reasons. Despite challenges, moving from the UPCoM market to HoSE offers higher transparency, liquidity, and foreign investor access — crucial steps as Vietnam aims for an upgrade to emerging-market classification by 2025.
This article is a condensed and translated summary (original in Vietnamese, VN) of a feature published in the September 2024 issue of Bloomberg Businessweek Vietnam.
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