IPO 2018: Vietnam unexpectedly exceeds Singapore in value

[Viet]

Last update: 16:00 | 22/12/2018

VietNamNet Bridge - The speeding up of the equitization process has helped Vietnam’s IPO market lead Southeast Asia in terms of value.

With the value of 6.2 billion Singapore dollars by November, the IPO market in Vietnam unexpectedly surpassed Singapore in IPO value (715 million Singapore dollar) to lead the Southeast Asian market, according to Deloitte.

Vietnam made up more than half of the total IPO value in Southeast Asia. Number 1 position for the year will belong to Vietnam, as there is only one month ahead.

The huge IPO deals which contributed to the achievement include those of Vinhomes, a subsidiary of the Vingroup conglomerate, and the share issuance by Techcombank.

Deloitte’s report said the emergence of Vietnam’s capital market is the result of the government’s policies on speeding up equitization and market restructuring. This has been associated with an increase in interest from foreign investors and domestic funds. In addition, the expected high GDP growth rate in 2018 is also an accelerator.

Meanwhile, the figure in Singapore is discouraging, especially when compared with the 4.6 billion Singapore dollars worth of IPO value in 2018.

According to experts, political conflict, trade wars and unfavorable macro conditions all have affected this year’s IPO plans by enterprises, especially large corporations.

This year’s encouraging results, plus the strong flow of foreign capital to Vietnam, will contribute to a good year in 2019. This may prompt domestic enterprises to cancel the listing overseas once they realize that capital in Vietnam is still plentiful.

FTSE Russell recently put Vietnam on its watchlish to be upgraded into an emerging stock market.

Meanwhile, a study by Bain & Company showed that 90 percent of private investors consider Vietnam and Indonesia as the hottest markets in ASEAN over the next 12 months.

According to the firm, the value of the investments in the two countries amounted to 20 percent of total regional investment value in the last five years.

Besides good macroeconomic conditions, the trade war initiated by the US and China will also serve as the ‘catalyst’ for foreign capital to head for Vietnam.

The total FDI capital registered in the first 11 months of the year reached $30.8 billion.

“I think the trade war will drive FDI flow to Vietnam as companies try to relocate their production bases to Vietnam. This will be associated with the opportunity to boost exports. Vietnam will benefit in the short term,” said Don Lam, CEO of VinaCapital.

According to the Ministry of Finance, 12 SOEs with the total value of VND29.747 trillion were equitized in the first 11 months of 2018.


https://m.english.vietnamnet.vn/fms...dly-exceeds-singapore-in-value.html#ui=mobile

 

[Viet]

@Mista

Surprise but no surprise. Vietnam plays a catch up game. It’s still a long way though.

 

[Mista]

@Mista

Surprise but no surprise. Vietnam plays a catch up game. It’s still a long way though.

Congratulations.

Singapore's stock exchange market is quite a dead water actually.


1) We don't have a huge hinterland like other financial centers, such as Hong Kong. HK is the largest IPO market in the world this year.

The Hong Kong stock exchange reclaimed its crown as the No 1 IPO market in the world in 2018, beating last year’s winner New York, as listing reforms led to the highest fundraising in eight years, according to Refinitiv data. Hong Kong’s main board had a 17.6 per cent share of the global IPO market this year as of December 21, with 125 companies raising US$36.5 billion.

https://www.scmp.com/business/compa...regains-2018-global-ipo-crown-new-york-thanks


2) Singapore's economic model is quite different from the rest of the world, maybe except China. A large portion of our capital is with the state (budget surpluses and pension funds), and the state invest the capital mostly in foreign markets. The GIC for example isn't allowed to invest domestically. Temasek's funds are invested predominantly in overseas markets as well:

The government has more than SGD1 trillion worth of reserves but little of that is invested in our own equities. The country is rich but the downside is that our own domestic private economy is undynamic and hence we are heavily reliant on MNCs.

 

[Viet]

Congratulations.

Singapore's stock exchange market is quite a dead water actually.


1) We don't have a huge hinterland like other financial centers, such as Hong Kong. HK is the largest IPO market in the world this year.

https://www.scmp.com/business/compa...regains-2018-global-ipo-crown-new-york-thanks


2) Singapore's economic model is quite different from the rest of the world, maybe except China. A large portion of our capital is with the state (budget surpluses and pension funds), and the state invest the capital mostly in foreign markets. The GIC for example isn't allowed to invest domestically. Temasek's funds are invested predominantly in overseas markets as well:

The government has more than SGD1 trillion worth of reserves but little of that is invested in our own equities. The country is rich but the downside is that our own domestic private economy is undynamic and hence we are heavily reliant on MNCs.

I am thinking of investing in Singapore stock market and real estate. Any advice, recommendation?

 

[Mista]

I am thinking of investing in Singapore stock market and real estate. Any advice, recommendation?

I don't think it's a good time to enter the stock market now due to rising US interest rates, trade war, and Chinese economic slowdown. Our economy is very exposed to the US and China.

For real estate the government is very determined to keep prices stable (for affordability and avoid financial risk) and they do have the political will to carry out their policies, swiftly. For example prices started recovering in the 3rd quarter but they imposed another round heavy cooling measures immediately.

2nd July: Private home prices jumped by 9.1 per cent year-on-year
4th July: Central Bank warns of 'euphoria', government monitoring housing market closely
5th July: Heavy cooling measures announced, effective from 6th July
>Developers: Government is 'harsh, draconian and heavy-handed'.

https://www.channelnewsasia.com/new...v-expected-but-heavy-handed-analysts-10503276

The government introduced a higher minimum average unit size as well, which is likely to reduce the average psf selling price.

http://www.asiaone.com/business/bigger-average-unit-size-expected-temper-condo-prices-singapore

So if you want to invest in real estate don't expect huge speculative returns. All signs show that the government is shifting investment focus away from real estate, to keep property affordable and livable for the common man.

However such harsh cooling measures in place means it's actually a good safe-haven in times of uncertainty, as the government can lift them anytime if prices slide too drastically. Bubble risk is small.

 

[Viet]

I don't think it's a good time to enter the stock market now due to rising US interest rates, trade war, and Chinese economic slowdown. Our economy is very exposed to the US and China.

For real estate the government is very determined to keep prices stable (for affordability and avoid financial risk) and they do have the political will to carry out their policies, swiftly. For example prices started recovering in the 3rd quarter but they imposed another round heavy cooling measures immediately.

2nd July: Private home prices jumped by 9.1 per cent year-on-year
4th July: Central Bank warns of 'euphoria', government monitoring housing market closely
5th July: Heavy cooling measures announced, effective from 6th July
>Developers: Government is 'harsh, draconian and heavy-handed'.

https://www.channelnewsasia.com/new...v-expected-but-heavy-handed-analysts-10503276

The government introduced a higher minimum average unit size as well, which is likely to reduce the average psf selling price.

http://www.asiaone.com/business/bigger-average-unit-size-expected-temper-condo-prices-singapore

So if you want to invest in real estate don't expect huge speculative returns. All signs show that the government is shifting investment focus away from real estate, to keep property affordable and livable for the common man.

However such harsh cooling measures in place means it's actually a good safe-haven in times of uncertainty, as the government can lift them anytime if prices slide too drastically. Bubble risk is small.

I went to HK several times. I personally don’t like the place. Food is great however people there are rude. Much like China mainlanders. Many treat you as if you are nigger. Singapore is in contrast more civil more Europe. I think buying a condo is a good investment. Singapore is the only country that stands out in everything. Japan is another exception, other have the mindset of third world countries, e.i. primitive.

 

[Mista]

I went to HK several times. I personally don’t like the place. Food is great however people there are rude. Much like China mainlanders. Many treat you as if you are nigger. Singapore is in contrast more civil more Europe. I think buying a condo is a good investment. Singapore is the only country that stands out in everything. Japan is another exception, other have the mindset of third world countries, e.i. primitive.

Thanks. My father had the experience of getting scolded too in HK/Macau when he tried to bargain for price.
People say that HK is rude and Taiwan is friendly.

But I think in terms of civic-mindedness we still have a lot to learn from Japan.

https://www.straitstimes.com/singapore/spore-should-now-aim-to-be-first-world-society-lim-siong-guan