Companies listed on the stock exchange amplify their endeavors to raise capital through share sales
The competitive landscape for listed companies in Vietnam is heating up as companies rely on diverse funding methods to drive growth, improve financial health, and boost market competitiveness. Here's a breakdown of the capital-raising strategies companies are adopting:
Capital Gathering Approaches
- Mergers, Acquisitions, and Consolidations (M&A): Companies are putting cash to work through strategic M&A deals to expand market influence and bolster competitive edge. These moves help them integrate resources, enhance efficiencies, and strengthen their market presence.
- Debt Reduction: By increasing equity, companies can scale back their debts, ultimately improving financial health and stability. This enables them to handle future challenges more efficiently.
- Stock Exchange Listings: Several banks, like VietABank and VietBank, are aiming for listings on the HoSE (Ho Chi Minh Stock Exchange) to boost transparency, improve liquidity, and expand market visibility. The listings are part of broader strategies to bolster capital bases and maximize shareholder value.
- Capital Enhancement:
- Employee Stock Ownership Programs (ESOPs): Some companies, like VietABank, are planning significant capital hikes through employee stock ownership programs, wherein employees are offered shares in exchange for their work.
- Multi-phase Issuances: Companies like VietBank are pursuing multi-phase share issuances, with plans to substantially increase charter capital by year-end 2025.
- Foreign Direct Investment (FDI): Vietnam is witnessing a spike in FDI, with inflows soaring over 50% in early 2025. Capital increases can indirectly benefit as these investments fuel the local market.
Forward-looking Scenarios
- Domestic Economic Development: The Vietnamese government's focus on economic reforms aims for an 8% GDP increase, paving the way for further domestic investments and capital-raising efforts.
- Managing Market Volatility: Companies are keeping an eye on market conditions, with plans to list or raise capital contingent on favorable market circumstances.
In summary, listed companies in Vietnam are embracing a multifaceted approach to capital increase, ready to adapt to market fluctuations and actively compete in the domestic and global investment landscape.
Source: VNA/VNS Photo\Additional Enrichment: [1] Viet Dragon Securities (VDS), [2] BIZHUB/VNS, [3] Nikkei Asia, [4] State Bank of Vietnam, [5] Daily Mail Vietnam.
our website Airlines plans to issue 900 million shares to existing shareholders to raise VNĐ9 trillion. - VNA/VNS Photo
- Leveraging advanced AI technologies, investing firms are analyzing market trends and indicators to identify suitable opportunities for financing and investing in the business sector, particularly in Vietnamese companies.
- By capitalizing on foreign direct investment (FDI) streams and strategically implementing funding methods such as equity, debt, and employee stock ownership programs (ESOPs), these listed companies aim to reinforce their financial standing and competitive edge in the global trade and finance landscape.
