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The Economy in Vietnam, there were eight successful initial public offerings (IPOs) in 2022. Although this is lower than the 13 recorded for 2021, the amount mobilized has more than quadrupled, from 15.6 million USD to 71.4 million USD.

Southeast Asia including the economy in Vietnam weather tough times better

Vietnam’s economy, the report “Southeast Asian IPO Market in 2022” shows that, in 2022, Southeast Asia will continue to become one of the regions. There was strong growth in the IPO sector, reflected in the increase in the number of IPO deals compared to the previous year.

The year 2022 is a year of uncertainty for the global economy and financial markets, as demonstrated by successive interest rate hikes aimed at countering rising global inflationary pressures and the Russia-Ukraine conflict as well. contributed to a crisis in the global supply chain along with upward pressure on prices.

The data shows that 2022 has seen 163 successful IPOs in Southeast Asia, up 7% from 152 IPOs in 2021. While the number of IPO companies has increased, the total amount of capital raised has gone through. IPO in 2022 is only $ 7.6 billion, down 43% compared to 2021 (with a total raised capital of $ 13.3 billion). This reflects a larger number of small IPOs in the past year.

The Southeast Asian IPO market ended 2022 with a market capitalization of $56.1 billion, up 10.3% year-on-year despite a 43% drop in raised capital.

Besides, although the growth momentum in 2022 has slowed down (after 2021, the global IPO boom), Southeast Asia also shows that it has overcome the difficult times better, with the amount of capital raised from IPOs. down 43%, but the decrease is still lower than in other markets such as the US, which decreased by 95%; the UK down by 89%; Hong Kong fell 68%.

While Thailand and Indonesia lead Southeast Asia in 2022 (these two markets alone raised nearly 6 billion USD, accounting for a total of 78% of the total amount raised through IPOs of the whole Southeast Asia region). Malaysia recorded the most impressive growth in IPO capital, up to 138% in 2022.

Comments on capital markets in Southeast Asia, when the world is winning the war against the pandemic, the reopening of economies and national borders has led to a rise in global inflation from 4 .7% in 2021 to 8.8% in 2022, leading to an increase in US Federal Reserve interest rates by nearly 4% within a year, in order to curb rising inflation. Facing these macroeconomic factors, the Southeast Asian IPO market has maintained quite well, while the growth potential of the region’s economy continues to be recognized.

Southeast Asia still has high growth potential, as the region emerges from the Covid-19 crisis. We expect IPO activity to go through ups and downs, as the market readjusts from a pandemic mindset to a normal one. While current valuations may be lower for technology companies, those with a solid business foundation and who can demonstrate profitability will still be able to achieve optimal market valuations. and exploit the benefits of capital markets.

You can read the previous economy in Vietnam article here: Business Suspension Deadlines and Regulations on Tax

Capital raised through IPO in Vietnam quadrupled

The economy in Vietnam, there have eight successful IPOs by 2022. Although this is lower than the 13 offerings recorded for 2021, the amount raised has more than quadrupled, from 15.6 million USD to 71.4 million USD.

In the first half of the year, the capital market kicked off with 6 successful IPOs, raising $65 million, following the exciting developments of the market in the second half of 2021. During this period, the Vietnamese market witnessed Two successful IPOs raised more than 20 million USD each, from Ton Dong A and Nova Consumer.

The market showed signs of slowing down in the second half of the year, due to global uncertainties over inflation and the growing possibility of a recession. The economy in Vietnam, this trend dominated by escalating fuel prices, rising interest rates, and tightening capital markets… recently.

The focus of the IPO market in Vietnam has shifted from real estate in 2021 to industrial products and consumer goods in 2022. The consumer goods sector is expected to continue to play an important role, in brands’ upcoming IPO. With the current uncertainties, investors as well as companies are quite cautious in determining when to enter the market.

Vietnam’s economy is forecast to grow by 6.5% in 2023. Slowing growth stems from uncertainties in the global economic market and dependence on foreign partners in manufacturing activities. export. There are many companies preparing to offer for sale but are waiting for the market to show more positive signs. Regulatory changes in capital markets are expected to boost investor confidence and stabilize the economy in the long term, leading to a more vibrant stock market.