Market Insights Financial Corporate Finance

Initial Public Offerings - Vietnam

Vietnam

The transaction value in the Initial Public Offerings market is projected to reach US$353.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 4.14% resulting in a projected total amount of US$367.60m by 2025.
The average transaction value in the Initial Public Offerings market amounts to US$29.67m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in China (US$63,330.00m in 2024).

Market

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Currency

Analyst Opinion

The Initial Public Offerings market in Vietnam is experiencing a surge in activity and interest from both local and international investors.

Customer preferences: Investors in Vietnam are showing a growing appetite for IPOs due to the potential for high returns in a rapidly developing economy. They are attracted to the diverse range of companies going public, offering opportunities for portfolio diversification and potential capital gains.

Trends in the market: One notable trend in the Vietnamese IPO market is the increasing number of technology and fintech companies going public. This trend reflects the country's shift towards a digital economy and the growing demand for innovative tech solutions. Additionally, state-owned enterprises are also a significant player in the IPO market, as the government continues to divest its stakes in various sectors to attract private investment.

Local special circumstances: Vietnam's IPO market is unique due to the government's active role in promoting privatization and economic reforms. The government's efforts to improve transparency, governance, and regulatory frameworks have boosted investor confidence in the market. Moreover, the young and tech-savvy population in Vietnam is driving demand for IPOs of tech companies, creating a dynamic and competitive market environment.

Underlying macroeconomic factors: The Vietnamese economy's strong performance, with stable GDP growth and increasing foreign direct investment, is a key factor driving the growth of the IPO market. The country's strategic location, trade agreements, and favorable business environment have positioned Vietnam as an attractive destination for investors looking to capitalize on the region's growth potential. Additionally, the government's commitment to economic reforms and infrastructure development further support the positive outlook for the IPO market in Vietnam.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.