**Vietnam’s Investment Banks Prepare for IPO Surge Amid Market Upgrade**
Vietnam’s anticipated elevation to emerging-market status by FTSE Russell in September has prompted investment banks to bolster their workforce in preparation for a wave of initial public offerings (IPOs). VnDirect Securities Corp. plans to increase its investment-banking staff by 20% to 30% over the next 12 to 18 months. Similarly, Vietcap Securities, which recently facilitated the IPO of VPBank Securities, aims to expand its team by as much as 40% next year. This staffing surge is in response to an expected influx of tens of billions of dollars in equity offerings over the next two to three years.
Dragon Capital, the largest fund manager in Vietnam, projects that IPO proceeds could exceed $40 billion between 2026 and 2028, driven by a thriving economy and a robust stock market. This forecast marks a significant increase from the $1.6 billion raised through first-time share sales this year, the highest since 2018. Quynh Cao, head of institutional business at VnDirect, emphasized the urgency of expanding their investment-banking division, stating, “This new wave is more obvious than ever — and it’s definitely not hype.”
VPBank Securities, the brokerage arm of Vietnam Prosperity JSC Bank, successfully raised $460 million in one of the year’s largest public offerings, which was oversubscribed. Other firms, including VPS Securities JSC, Techcom Securities, and Vingroup JSC’s hospitality division, Vinpearl, have also secured funding in 2025, coinciding with a 37% rise in the stock benchmark VN Index. The outlook for first-time share sales remains promising as Mobile World Investment Corp. and Masan Group prepare to launch IPOs for their subsidiaries. Additionally, real estate company Gelex Infrastructure and retail brands like Golden Gate, Highlands Coffee, and Sunhouse Group are expected to conduct their offerings as early as next year.
However, investment banks face challenges in recruiting qualified personnel in this burgeoning yet developing market. Nguyen Thomas, chief global markets officer at SSI Securities Corp., noted, “Our biggest challenge is just staffing. Because there’s been a drought for so many years, there’s not a lot of experienced people.”
Regulatory obstacles also pose challenges, including strict foreign ownership limits in certain sectors and the requirement for companies to demonstrate two consecutive years of profitability before applying for an IPO. In 2023, Pham Nhat Vuong, Vietnam’s wealthiest individual, took his electric vehicle company, VinFast Auto Ltd., public through a merger with a blank-check company, marking the largest listing by a Southeast Asian firm in the U.S. Meanwhile, Gene Solutions, backed by Mekong Capital Ltd., is planning an IPO on either the Hong Kong or Singapore stock exchanges, highlighting the difficulty Vietnam faces in retaining its top companies.
To address some of these issues, Vietnam has reduced the timeframe for companies to list their shares post-IPO from 90 days to just 30 days, thereby minimizing the duration investors’ funds are tied up. This change is expected to help bankers attract both domestic and international investors to local offerings.
**FAQ**
**What is the significance of Vietnam’s potential upgrade to emerging-market status?**
Vietnam’s potential upgrade to emerging-market status is significant as it is expected to attract substantial foreign investment, leading to a surge in initial public offerings and overall economic growth.
