Vietnam Stock Market Update: IPO Reforms on the Rise

Vietnam’s economy is surging forward as GDP expanded by 7.52% in the first half of 2025, the fastest first-half growth in more than a decade⁽¹⁾. This strong momentum is increasingly reflected in Vietnam’s capital markets, where the Ho Chi Minh Stock Exchange is attracting greater investor activity and renewed foreign interest⁽²⁾.

At the core of this optimism are regulatory reforms designed to modernize the Vietnam IPO stock marketand create more opportunities for IPO in Vietnam . The government is advancing the equitization of state-owned enterprises and upgrading market infrastructure to create a more transparent and efficient environment⁽³⁾.

These steps are fueling stronger capital inflows and positioning Vietnam as an emerging market with rising appeal to both domestic and foreign investors. Let’s explore the key policy shifts, their impact on investor sentiment, and the future of Vietnam’s capital markets with BBCIncorp.

IPO in Vietnam as a market in motion

As reforms reshape Vietnam’s capital markets, one area drawing particular attention is the initial public offering space. Here’s how the IPO process in Vietnam is evolving, marked by a strong revival of new listings and heightened investor activity.

The revival of IPOs

The story of the Vietnam stock market in 2025 cannot be told without highlighting the revival of IPOs. After a quiet stretch, Vietnam is once again drawing attention, with a wave of new listings underscoring rising investor appetite and corporate ambition.

One of the most notable was Vinpearl JSC (VPL), the hospitality arm of Vingroup, which listed in May with nearly 1.79 billion shares and a charter capital of VND 17.9 trillion (US$~691 million). The debut instantly positioned Vinpearl among the largest stocks in the VN-Index⁽¹⁾.

Another milestone came in August when Taseco Land (TAL) began trading roughly 312 million shares on the Ho Chi Minh Stock Exchange, lifting its market capitalization beyond VND 9,500 billion⁽²⁾.

F88 Investment JSC, well known for its pawnshop chain, also entered the market via UPCoM, pricing its shares ambitiously and signaling a long-term plan for a full IPO in Vietnam.

These developments represent more than isolated events. They point to a larger trend: Vietnam IPOs are becoming increasingly mainstream and integral to the growth of the capital markets.

Key market indicators

Underlying this revival, the VN-Index has reached new peaks. As of September 2025, it closed around 1,657.75 points, marking its third straight session of gains⁽³⁾. Trading liquidity is also expanding, with daily value on HOSE rising to VND 36.6 trillion (≈ US$1.4 billion) in a single session, up 23% from the previous day.

At the same time, participation is widening. By the end of July 2025, investors had opened nearly 10.5 million domestic trading accounts, including over 226,000 new accounts in that month alone⁽⁴⁾. Most of these accounts belong to retail investors.

Bringing it together

Currently, the IPO process in Vietnam is no longer sluggish. Instead, it reflects a vibrant market where corporate giants, property developers, and consumer finance players all see value in going public. Rising liquidity, index growth, and investor enthusiasm reinforce that Vietnam IPOs are indeed part of a market firmly in motion.

Understanding the reforms in the IPO process

Vietnam’s legislative momentum is reshaping how businesses access capital. The following reforms to the IPO procedures aim to make offerings more efficient, enhance guardrails, and support innovation.

Decree 155/2020 Amendments

A significant reform is coming with Decree 245/2025/ND-CP, which amends Decree 155/2020/ND-CP. Among its key changes is the proposal to integrate the IPO and listing procedures, requiring that companies submit documents for both processes simultaneously. The listing period after an IPO will be reduced from 90 days to 30 days⁽⁵⁾.

The update cuts waiting time, reduces uncertainty, and helps companies access market capital quicker, at the same time giving investors earlier liquidity.

Stricter requirements for public companies

Reforms also include more demanding eligibility criteria. For instance, under existing Decree 155/2020, IPO applicants must have a minimum paid-up charter capital (often VND 30 billion) and be profitable in the two preceding years without accumulated losses.

These conditions are intended to improve the quality of companies going public and lower risks for investors.

Easing restrictions for tech startups

The same profitability requirements, however, may be a hurdle for technology startups, which often incur losses early on in exchange for growth.

Experts and industry voices, such as Tran Van of IDS and stakeholders from the startup ecosystem, are advocating for relaxing those parts of the rules for tech firms, enabling high-growth, innovation-oriented companies to do an IPO in Vietnam even if not yet traditionally profitable⁽⁶⁾.

The role of the State Securities Commission (SSC)

The State Securities Commission has been proactive: it proposed the legal reforms, gathered input from market participants, and is helping shape the implementation of Decree 245/2025/ND-CP. Its leadership, Vice Chairman Bui Hoang Hai among them, has emphasized balancing efficiency, investor protection, and market openness⁽⁷⁾.

Together, these changes point to a more balanced IPO environment: one that holds higher standards for quality, yet grants flexibility where innovation demands it. The IPO process in Vietnam is evolving again, not just in form, but also in function.

Main impacts on businesses and global investors

The ongoing reforms to IPO in Vietnam signal a fundamental shift in how capital markets serve both businesses and investors. By streamlining procedures and tightening standards, policymakers are setting the stage for more reliable growth, better governance, and greater international attention. Let’s delve into the details.

Positive impacts of the changes

For business entities 

The clearer and faster pathway to listing offers a significant advantage for Vietnamese enterprises. By reducing the time from IPO to official trading, companies can unlock capital more efficiently, channeling funds into expansion, innovation, or debt reduction.

For instance, major names like Vinpearl and Taseco Land have already shown how a well-timed IPO in Vietnam can bolster balance sheets and fuel growth strategies. With reforms in place, even mid-sized firms can approach the market with greater confidence.

For domestic investors

For local investors, these changes mean access to a broader and higher-quality pool of listed companies. The introduction of stricter profitability and capital requirements raises the standard of firms entering the exchange.

As a result, investors benefit from diversified options beyond traditional blue-chips, strengthening their ability to build resilient portfolios. With over 10 million domestic trading accounts now active, demand for such opportunities is at an all-time high.

For foreign investors

Perhaps the most consequential impact lies in the international arena. Vietnam’s reform efforts, including the new IPO framework and the rollout of the KRX trading system, are widely seen as aligning the country with global best practices.

These steps are critical in meeting the criteria for an emerging market upgrade from FTSE Russell and MSCI.

Furthermore, analysts suggest such a move could attract billions of dollars in new capital inflows, as global funds that track these indices would gain automatic exposure to Vietnam. The new environment reduces friction while enhancing transparency, making the Vietnam stock market an increasingly compelling destination.

Challenges businesses must bear in mind

Although the opportunities are significant, the reforms also introduce new challenges that both companies and investors must navigate.

Stringent requirements

The profitability and loss conditions under the revised rules may create barriers for smaller firms and innovative startups. They ensure quality, but may also slow the pace of listings for companies still in early-growth stages.

This creates a need for balanced policies, such as the proposed easing of requirements for tech firms, to maintain inclusivity in the market.

The disconnect for FDI enterprises

Another issue is the lack of a clear legal framework for foreign direct investment (FDI) enterprises wishing to list in Vietnam.

Thus, the gap continues to limit the ability of international joint ventures to participate fully in the IPO ecosystem. Until it is resolved, it represents a bottleneck for the market’s ambition to become more globally integrated.

Overall, the changes in IPO in Vietnam are unlocking opportunities for businesses, domestic investors, and global funds alike.

Regarding this, regulators must continue balancing investor protection with flexibility so that the IPO market remains inclusive while aspiring for global recognition for the momentum to be sustainable.

The road to emerging market status for Vietnam

Strategically speaking, Vietnam’s IPO reforms are just one part of a bigger picture. The country is working toward a long-term vision where its capital market not only facilitates fundraising but also anchors Vietnam’s transition into a modern, globally integrated economy.

Long-term goals

The government has laid out two headline ambitions: to achieve an “emerging market” upgrade by 2027 and to secure an “investment grade” sovereign credit rating by 2030. These milestones are part of the Capital Market Development Strategy to 2030, approved by the Prime Minister in 2022.

Achieving them would significantly enhance Vietnam’s standing among international investors, giving it access to larger and more stable capital flows⁽⁸⁾.

Market upgrade and state capital divestment

The reform of the ipo process in Vietnam will be reinforced by a sweeping program of state capital divestment. Authorities plan to reduce holdings in over 100 state-owned enterprises (SOEs) by 2025, with a special focus on firms in the energy, telecommunications, and finance sectors.

In addition, several SOEs with market capitalizations above USD 1 billion have been earmarked for partial privatization⁽⁹⁾. Their listings would add depth and quality to the stock market while introducing stricter governance standards in sectors that have long been dominated by state ownership.

The broader economy

Stock market development is directly tied to Vietnam’s broader economic strategy. By 2030, the government aims to increase the number of operating businesses to 2 million and raise the private economy’s share of GDP to at least 55%⁽¹⁰⁾.

A deeper, more liquid stock market will help channel capital to these businesses, improve capital allocation, and accelerate productivity growth. Together, these measures reflect Vietnam’s determination to transform its financial system into a driver of sustainable, inclusive growth.

Conclusion from our perspective

The recent reforms to the IPO process in Vietnam are central to its strategy of modernizing the capital market. By streamlining procedures, strengthening standards, and advancing SOE divestment, regulators are opening stronger opportunities for both companies and investors.

The momentum behind the IPO in Vietnam underscores a market evolving toward greater efficiency, transparency, and global relevance. With clear policy targets for an emerging market upgrade by 2027 and investment-grade status by 2030, Vietnam is positioning itself as one of Asia’s most attractive investment destinations.

To stay informed and receive expert guidance on Vietnam’s evolving regulatory landscape, please visit BBCIncorp or contact us at service@bbcincorp.com. Our team is ready to offer timely expert support.

References:

(1) https://en.vietstock.vn/2025/05/vinpearl-set-to-make-a-splash-on-hose-with-nearly-18-billion-shares-965-611739.htm

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