DNVN - According to Mr. Kojima Kazunobu - Chief Advisor of JICA, foreign investors, including Japanese investors, are increasingly interested in the Vietnamese stock market. If large companies and emerging companies with investment attraction raise capital through IPO and listing, a large amount of foreign capital will flow in.
Sharing with the press, Mr. Kojima Kazunobu - Chief Advisor of the Japan International Cooperation Agency (JICA) said that foreign investors, including Japanese investors, are increasingly interested in the Vietnamese stock market. If large companies and emerging companies with investment attraction raise capital through IPO and listing, a large amount of foreign capital will flow in.
However, in recent years, the number of companies conducting IPOs and new listings on the Vietnamese stock market has been very limited. The best opportunity for foreign investors to invest in securities in Vietnam is to participate in IPOs, but the current IPO auction process makes it difficult for them to participate. Hopefully, a new IPO method, compatible with international standards such as underwriting/book building, will soon be established in Vietnam.
The current IPO auction process makes it difficult for foreign investors to participate.
Evaluating the technical cooperation project between the State Securities Commission and JICA to "Improve capacity for promoting the efficiency of Vietnam's stock market" that has just been announced, Mr. Kojima Kazunobu said that this is a continuation project of the cooperation between the two sides, contributing to upgrading the Vietnamese market to an "emerging market" and integrating with the international capital market.
“Looking forward to 2030, I think the next big achievement of the cooperation is to successfully advance the goals of strengthening the primary market according to international equity market standards and using effective self-regulatory organizations,” said Mr. Kojima Kazunobu.
According to the JICA Chief Advisor, the project has three main areas of activity. That is, strengthening market surveillance capacity to help securities agencies and exchanges enhance the detection, management and prevention of unfair transactions. Next, improving and developing the quality of market intermediary institutions, including securities companies and fund management companies.
At the same time, improve the capacity to manage public offerings and listings. This includes public offerings using internationally standardized methods (underwriting/book building), enhancing listing standards and inspection activities, and enhancing information disclosure, including non-financial information of listed companies.
Improvements to international standards for public offerings and listings are expected to pave the way for major changes in the future in favor of foreign investors. This depends on progress in discussions on shifting Vietnam’s current IPOs, which are conducted through auctions, to an underwriting and book-building approach, where the IPO is conducted simultaneously with the listing approval process.
“If this can be done, foreign investors, including Japanese investors, will be able to invest in attractive, newly listed stocks right from the IPO stage. Thereby, it is expected to significantly increase their investment opportunities in Vietnamese stocks,” Mr. Kojima Kazunobu expected.
Hoai Anh
Source: https://doanhnghiepvn.vn/kinh-te/chung-khoan/chung-khoan-viet-nam-hap-dan-von-ngoai/20240923033905155
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