Monthly Newsletter – January 2025

Each month, we deliver a comprehensive market overview, focused on the latest economic landscapes, leadership strategies, consumer actions, M&A transactions, investment activities, regulatory updates, and event highlights, providing you with actionable insights to make informed decisions, overcome challenges, and explore new opportunities.

With our proven track record, expertise, and deep market knowledge, we have had the privilege of advising and supporting many in shaping successful strategies, identifying the right opportunities, fostering connections with leading investors and prominent entrepreneurs, and facilitating impactful M&A transactions.

Stay ahead in this ever-evolving business landscape with our support and expertise. Together, we can navigate market dynamics confidently and empower your business and investment strategies!

If you have any questions or would like to see how we can help, please call +84 789 505 789 or email market@asart.com.vn, and we will get back to you. 

MARKET OVERVIEW
In 2024, Vietnam achieved significant accomplishments, surpassing the same period last year and meeting all 15 goals set at the beginning of the year. The GDP growth rate for 2024 reached 7.1%, raising the country’s GDP to VND 11,512 trillion, equivalent to approximately USD 476 billion, while GDP per capita reached USD 4,700, an increase of USD 377 compared to 2023.

By economic sector, in 2024, agriculture, forestry, and fishery grew by 3.3%, industry and construction by 8.3%, and services by 7.4%. Specifically, GDP growth rates were as follows: Q1 grew by over 5.9%, Q2 by over 7.2%, Q3 by over 7.4%, and Q4 by over 7.5%.

ASART forecasts that with the trend of monetary easing in global economies, the global economy will have a more optimistic outlook in 2025. Vietnam will also benefit from this trend. We predict that Vietnam’s economy will grow by 7.5% in 2025, outperforming 2024 as the country enters a new era of development.


Source: GSO, ASART analysis
* Decimal and thousand separators follow English conventions

Inflation and Interest Rates
The nationwide Consumer Price Index (CPI) 2024 increased by 3.6% compared to the previous year. Inflation in December 2024 rose by 2.9% compared to the previous year. On average, core inflation for 2024 increased by 2.7% compared to 2023, lower than the overall average CPI increase of 3.6%. This is primarily due to the impact of rising prices of food, electricity, educational services, and healthcare services—factors contributing to the CPI increase—that are excluded from the calculation of core inflation. Overall, inflation has been successfully controlled within the limits set by the National Assembly.

Thanks to the flexibility and proactive approach of the State Bank of Vietnam’s monetary policy in 2024, the money market remained stable, serving as an important channel for funding business activities, thus contributing to economic growth while controlling inflation.


Source: GSO, ASART analysis
* Decimal and thousand separators follow English conventions

Interest rates on deposits and loans were kept low and stable, credit growth was strong, meeting set targets, non-performing loans decreased, and the asset quality of the banking system improved significantly.

Regarding deposit interest rates, most banks increased their deposit rates in 2024. Specifically, 26 banks raised the interest rates for 3-month terms, 23 banks increased rates for 6-month terms, and 20 banks raised rates for 12-month terms.

Trade Activities
In December 2024, Vietnam’s total trade value is estimated at USD 70.5 billion, an increase of 15.9% compared to the same period last year. Exports are projected at USD 35.5 billion, up 12.6% year-on-year, while imports are estimated at USD 35.0 billion, reflecting a 19.5% year-on-year increase. As a result, the trade balance for December 2024 recorded a surplus of USD 0.5 billion.

For 2024, preliminary total import and export turnover reached USD 786.3 billion, an increase of 15.4% compared to the same period last year, with exports rising by 14.3% and imports by 16.7%. The trade balance recorded a surplus of USD 24.8 billion.


Source: GSO, ASART analysis
* Decimal and thousand separators follow English conventions

Investment and M&A
In December 2024, total Foreign Direct Investment (FDI) inflows into Vietnam reached USD 6.85 billion, accounting for 17.9% of the country’s total investment in of the year. By the end of the year, total registered FDI in Vietnam approached USD 38.23 billion, marking a 4.4% increase compared to 2023, while the actual disbursed capital from FDI projects was estimated at approximately USD 25.35 billion, reflecting a 9.4% increase.

Overall, FDI M&A activities (share purchases) decline sharply in 2024, recording 3,502 transactions with a total capital contribution of USD 4.5 billion, down 47% compared to last year.


Source: GSO, ASART analysis
* Decimal and thousand separators follow English conventions

Vietnam’s merger and acquisition (M&A) market in 2024 has been slower than anticipated, with lower deal values reflecting a cautious approach from investors. By October, there were about 174 transactions, totaling approximately USD 2 billion in disclosed value. While the number of deals grew by around 21% y-o-y, the total deal value dropped by 54%, showing a significant decline from the previous year. This reduction can be attributed to global economic headwinds, a prolonged high USD interest rates environment, and investor hesitancy amid lingering uncertainties. Investors, though still active, are now prioritizing strategic, value-driven deals over speculative ones.


Source: Eikon Refinitiv, ASART’s analysis
Note: *M&A data include foreign and domestic transactions, exclude intercompany transactions.
**To the extent possible, we estimated undisclosed transaction values using our methodology, for reference purposes only.

Despite this overall market downturn, several key sectors continued to attract interest. The technology sector remained active, particularly in fintech and e-commerce, as businesses in Vietnam pushed for digital transformation. The financial sector also garnered attention, driven by increasing consolidation and the expansion of consumer finance services to meet growing demand. The healthcare sector showed resilience as well, supported by Vietnam’s ongoing investments in healthcare infrastructure and rising demand for pharmaceutical products. Renewable energy continued to see deals, albeit at a slower pace, as government policies emphasized sustainability and green energy initiatives. Logistics and education attracted a lot of investors’ interest, however qualified targets are still limited. Meanwhile, the consumer goods and retail sector, though impacted by weakening demands and tightening market conditions, still drew investments in firms with established brands and strong customer bases.

Key investor countries in Vietnam’s M&A market this year included South Korea, Japan, and Singapore. However, activities from these countries slowed slightly, mirroring the broader market conditions. South Korean and Japanese investors maintained their focus on Vietnam, with South Korea showing interest in technology and Japan in healthcare and consumer goods. Singaporean investors remained active in real estate and logistics, aligning with Vietnam’s urban growth trends. In contrast, European investments saw a dip, as firms there adopted a cautious, wait-and-see stance amid economic uncertainties.


Source: Eikon Refinitiv, ASART analysis

Exchange Rate
The VND/USD selling exchange rate (Vietcombank) remained stable at the end of December, rising slightly from 25,463 to 25,551, an increase of 0.03% compared to the beginning of the month. In 2024, the VND depreciated by approximately 4.6%, and the State Bank of Vietnam intervened by selling around USD 9.4 billion to stabilize the exchange rate. By the end of the year, foreign exchange reserves were estimated at around USD 80 billion. Despite fluctuations, the exchange rate remained within the limits set by the State Bank. Notably, the VND experienced less depreciation compared to several other regional currencies, such as the South Korean won (KRW) at 12.51%, the Philippine peso (PHP) at 4.74%, and the Indonesian rupiah (IDR) at 4.85%.


*Ask rate on the last day of the month, decimal and thousand separators follow English conventions
Source: Vietcombank, ASART analysis

M&A SPOTLIGHTS IN THE YEARS

VIETNAM Energy Shizuoka Gas Co., Ltd. of Japan reached an agreement to acquire a 25% stake in My Son-Hoan Loc Viet Solar Energy JSC (MSHLV) from energy developer Hoan Loc Viet JSC (HLV), aiming to expand its presence and enter the renewable energy sector in Vietnam. The Southeast Asia Clean Energy Fund II (SEACEF II), managed by Clime Capital, a Singapore-based management company specializing in low-carbon energy conversion services and Nami Distributed Energy (Nami), has invested USD 10 million USD in Viet Thang Holding Company. Potential project to provide sky-high energy solutions and on-site energy solutions.   Levanta Renewables, a leading Southeast Asia-focused renewable energy platform acquire a 28.7 MWp rooftop solar system in Vietnam.   Singaporean giant Sembcorp has completed the acquisition of a majority stake in three out of four subsidiaries of Gelex, thereby adding 196 MW of operational wind and solar power capacity to its investment portfolio. Once all transactions are finalized, Sembcorp’s total renewable energy capacity in Vietnam will reach 455 MW, while the group’s global capacity will be 14.4 GW.   Financial Services GELEX Group (GEX) has acquired an additional 4.9% stake in Eximbank, increasing its total ownership to 10% charter capital to become the largest shareholder. SCB X, a major fintech conglomerate and the parent company of Siam Commercial Bank (SCB) in Thailand, has acquired 100% of the shares of Home Credit Vietnam for approximately USD 860 million. South Korea’s DB Insurance Group has acquired a 75% stake in VNI Aviation Insurance Corporation and a 75% stake in BSH Insurance Corporation, with a total transaction value of approximately USD 118 million. Healthcare & Pharmaceutical – The German-based generic drugmaker STADA acquired the Nizoral Cream business in Vietnam, the Philippines, and Thailand from the US-based Johnson & Johnson Group, to expand its consumer healthcare business in the Asia-Pacific region.   Lotus Pharmaceutical acquired the leading anti-inflammatory product Alpha Choay in Vietnam and Cambodia from Sanofi for USD 50 million. The acquisition will include Sanofi’s trademark, marketing authorization, and manufacturing know-how.   Real Estate EQT Private Capital Asia, a Hong Kong-based private equity firm, has acquired PropertyGuru, a leading PropTech company headquartered in Singapore, for USD 1.1 billion; PropertyGuru owns Batdongsan.com.vn, a prominent property portal in Vietnam. Kido Group increased its ownership from 39.41% to 58.05% in Hung Vuong JSC (Hung Vuong Plaza Shopping Center). The deal value was not disclosed.   Bitexco officially transferred 100% of its stake in Saigon Glory, the developer of the One Central HCM (Ben Thanh Quadrant) project, to Phuong Dong Real Estate Company. Retail Masan Group acquired a 7.1% stake in WinCommerce from SK Group for a value of USD 200 million. Additionally, both parties have agreed to extend the exercise period of SK Group’s put option on MSN by up to 5 more years.   CHD Investment has acquired a 5% stake in Bach Hoa Xanh, a leading food retail chain in Vietnam, with a transaction value of approximately USD 73.3 million.   F&B Marubeni acquired additional shares in AIG Asia Ingredients Corporation (AIG) on August 5, marking its second investment in AIG following the initial investment at the end of 2023.   NutiFood, a company in the nutritional food sector, acquired a 51% stake in KIDO Foods, Vietnam’s leading ice cream producer. The deal value was not disclosed.   Sabeco acquired 43.2% of the capital in the Saigon Binh Tay Beer Group – Sabibeco for an estimated value of approximately 34 million USD, thereby becoming the parent company with an ownership stake of 65.9%.   Information Technology SK Group acquired 100% of Iscvina Manufacturing for USD 300 million, a South Korean company specializing in semiconductor manufacturing and trading, operating in Vinh Phuc province.   Singapore telco M1 Limited, a Keppel subsidiary, has acquired a 70% stake in Vietnam’s ADG for VND 719 billion (USD 28.3 million) to expand in the Vietnamese IT sector.   Vietnamese startup METUB, operating in the digital entertainment and media sector, has raised USD 15.5 million from North Haven Thai Private Equity, a private equity fund managed by Morgan Stanley.   Automative Tasco Auto acquired 100% of Sweden Auto, the only genuine importer and distributor of Volvo cars in Vietnam, to help Tasco Auto strengthen its position as the largest automobile distributor in Vietnam and develop a vertically integrated business model.   Mitsui & Co. became a strategic shareholder in Tasco Auto to develop the automotive services sector in Vietnam. Agriculture Summit Agro International Ltd (SAI), a subsidiary of the Sumitomo Corporation, has invested in acquiring a 49% stake in Hop Tri Investment Joint Stock Company, a manufacturer and distributor of crop protection products, fertilizers, and public health products.

THE WORLD F&B Danish brewer Carlsberg is acquiring 100% British soft drink manufacturer Britvic for USD 4.2 billion, to be completed in Q1 next year.   US leader in pet care, snacking, and food Mars acquires US company specializing in snacking, cereals, and noodles Kellanova for nearly USD 36 billion to expand Mars’ snack division.  Blackstone has reached an agreement to acquire Jersey Mike’s Subs, the popular sandwich chain, in a deal valuing the company at approximately USD 8 billion, including debt. Information Technology Salesforce acquired Own Company, a provider of data protection and management solutions, for USD 1.9 billion to accelerate the growth of its data security and privacy products.   Blackstone and Vista Equity Partners acquired Smartsheet, the enterprise platform for modern work management, in an all-cash transaction valued at approximately USD 8.4 billion. Verizon has acquired fiber-optic internet provider Frontier Communications in an all-cash deal worth USD 20 billion, aiming to expand its subscriber. Following Qualcomm, Apple and Samsung are also looking to acquire Intel to expand chip production and reduce dependence on current suppliers. Siemens has reached an agreement to acquire Altair Engineering, a prominent provider of industrial simulation and analysis software, for around USD 10 billion. This deal will enhance Siemens’ position as a top technology company and reinforce its leadership in the industrial software sector. Recycling Waste Management Inc (WM) entered into a definitive agreement with Stericycle to acquire all outstanding shares at USD 62 per share, giving Stericycle an enterprise value of USD 7.2 billion, a premium of 24%.   Financial Services The National Bank of Canada (NA) announced its acquisition of Canada Western Bank (CWB) for USD 3.63 billion on 11 June, marking the integration of Canada’s sixth and eighth-largest lenders.   Allianz, a German financial services company, has entered into an agreement to buy a 51% stake of Income Insurance, a Singaporean insurance company, for SD2.2 billion (USD 1.64 billion), or SD40.58 (USD 30.29) per share.   Healthcare & Pharmaceutical Becton Dickinson (BD), a leading global medical technology company announced it will buy Critical Care’s product division of Edwards Lifesciences for USD 4.2 billion in cash, where it will fund USD 3.2 billion through debt.   Malaysia’s IHH Healthcare acquired 100% ownership of Island Hospital, a local private hospital chain, for USD 901 million. Carlyle Group, a U.S.-based global investment management firm is acquiring Baxter International’s kidney-care unit, Vantive, a US healthcare company for USD 3.8 billion. Cencora announced plans to acquire Retina Consultants of America from private-equity firm Webster Equity Partners for USD 4.6 billion, strengthening its position in the specialty medicines market. Logistics DSV, the Danish forwarder has agreed to acquire DB Schenker from the state-owned railway company Deutsche Bahn for USD 15.85 billion, positioning it to become the world’s largest freight forwarder.”   Aviation Elliot Management, an activist hedge fund, has purchased a USD 1.9 billion in shares of Southwest Airlines, making Elliott Management one of Southwest’s largest shareholders.   Boeing announced a definitive agreement to acquire Spirit AeroSystems in an all-stock transaction valued at approximately USD 4.7 billion, including Spirit’s net debt, the total transaction value is about USD 8.3 billion. The acquisition, representing a 30% premium over Spirit’s stock price, aims to realign Boeing’s commercial production systems and workforce priorities.   Retail HBC, the retail conglomerate known for owning Saks Fifth Avenue, reached an agreement to acquire Neiman Marcus for USD 2.65 billion on July 3rd. This deal marks a significant expansion of HBC’s footprint in the high-end consumer goods market in the USA.   Canada-based Couche-Tard, the owner of Circle K’s, is acquiring the 7-Eleven convenience store chain from Japan’s Seven & i Holdings to expand its business with an undisclosed value.

KEY HIGHLIGHTS ON THE SOCIO-ECONOMIC ISSUES

VIETNAM Vietnam enters a new era of development: “Kỷ Nguyên Vươn Mình của dân tộc Việt Nam”. In his directive speech at the nationwide conference to thoroughly implement the Resolution of the 10th Central Conference, the XIII Party Congress, held in Hanoi on October 20, 2024, General Secretary To Lam remarked: “With the great achievements after nearly 80 years of nation-building, with the strength and power we have accumulated, and with new opportunities and favorable conditions, we have gathered enough resources and are facing a historic opportunity to bring the country into a new era of development –“Kỷ Nguyên Vươn Mình của dân tộc Việt Nam”. General Secretary To Lam was the first to introduce and launch the new era of development – “Kỷ Nguyên Vươn Mình của dân tộc Việt Nam”, marking a new development phase for the country, beginning with the 14th National Party Congress in early 2026. The declaration of the new era along with the initiation of the revolution to streamline the government apparatus and the timely decisions made by the Politburo on breakthroughs in science, technology, innovation, and national digital transformation, are significant milestones that will set the stage for a new period of development for the country, starting in 2026. Vietnam is streamlining its government apparatus and improving its institutional and legal system. The revolution in reorganizing the political system with the viewpoint of “Streamlined, compact, strong, efficient, effective” in line with the Party’s policy, led by General Secretary To Lam, has received the attention, support, determination, and high commitment from the entire political system and the people. This is a comprehensive and profound revolution in all aspects, aimed at the rapid and sustainable development of Vietnam in the new era. Notable among these are: 1. Merging the Ministry of Planning and Investment with the Ministry of Finance. 2. Merging the Ministry of Transport with the Ministry of Construction. 3. Merging the Ministry of Natural Resources and Environment with the Ministry of Agriculture and Rural Development. 4. Merging the Ministry of Information and Communications with the Ministry of Science and Technology. 5. Merging the Ministry of Labor, Invalids, and Social Affairs with the Ministry of the Interior. 6. Ending the operations of the State Capital Management Committee at state-owned enterprises, transferring the ownership representative’s rights and responsibilities for 19 state-owned corporations and companies to the relevant ministries, and studying organizational models under the Government. In terms of the legal system, in 2024, the National Assembly passed 31 laws, most of which were proposed by the Government, surpassing the total number of laws (30 laws) passed during the first three years of the term. With 18 laws and 21 resolutions approved, the 8th Session of the National Assembly was the session with the largest number of laws passed, accounting for nearly one-third (18/61 laws) of the total laws enacted by the National Assembly since the beginning of the term. Notably, the revised Land Law was passed after four sessions. Vietnam strengthens bilateral relations and diplomacy Vietnam have conducted a total of 60 diplomatic activities, including 21 visits to foreign countries and participation in major multilateral conferences, while also welcoming 25 delegations of foreign leaders to Vietnam. These visits and diplomatic activities have achieved significant strategic and long-term outcomes, particularly in elevating and upgrading relations with key partners and deepening and enhancing the effectiveness of cooperative ties. The favorable and expansive diplomatic landscape has been strengthened, providing a solid foundation for safeguarding and building the nation. Vietnam has established diplomatic relations with 194 countries, upgraded its ties to Comprehensive Strategic Partnerships with Australia, France, and Malaysia; Strategic Partnerships with Brazil; and Comprehensive Partnerships with Mongolia and the United Arab Emirates (UAE). The total number of partners with formal frameworks of relations has reached 32, with over 170 cooperation agreements signed across various fields. Vietnam secures major global investments In 2024, a series of major foreign direct investment (FDI) giants made significant investments in Vietnam, including: Amkor Technology Group with an investment of USD 1.07 billion, LG Group investing USD 1 billion, Hyosung Group investing USD 700 million in the Bio-BDO (Butanediol) Biodegradable Fiber Plant project, Talway Group investing USD 700 million, Capital Land investing USD 661 million, and Foxconn investing USD 551 million in smart entertainment products and intelligent system devices projects, among others. Notably, the return of Nvidia’s Chairman to Vietnam in December marked a major milestone, as Nvidia officially signed a cooperation agreement with Vietnam to establish an AI Research and Development (R&D) center and an AI data center. Nvidia also announced the acquisition of VinBrain, a Vingroup startup in the field of artificial intelligence. 2024 also witnessed significant events in trade and investment relations between Vietnam and the United States. From March 18–21, 2024, an unprecedented delegation of over 50 major U.S. companies, spanning sectors such as defense, pharmaceuticals, and technology—including global leaders like SpaceX, Netflix, and Boeing—visited Vietnam, resulting in several investment agreements. South Korean businesses, long-standing partners of Vietnam, also announced major expansion plans for this year. For instance, Hyosung (South Korea) invested USD 3.5 billion in Vietnam and plans to invest an additional USD 2 billion, while Samsung is expected to invest an extra USD 1 billion per year in Vietnam. Vietnam’s attractiveness is driven by long-term factors such as cost advantages, a plentiful labor force, policies that encourage a favorable investment environment, and a focus on improving infrastructure. As a result, Vietnam will continue to be a key destination for FDI. Vietnam is gradually improving its infrastructure. In 2024, the implementation of strategic infrastructure projects, which are seen as “game-changers” and “transformational,” made significant breakthroughs with concrete results. Many projects were completed in record time. Notably, an additional 109 km of expressways were completed and put into operation, bringing the total length of expressways nationwide to over 2,021 km. This lays the foundation to achieve the goal of having at least 3,000 km of expressways by 2025, with a continuous expressway route from Cao Bằng to Cà Mau. Major airport construction projects, especially Long Thanh Airport, have gained significant progress and will be largely completed by 2025. The first metro line of Ho Chi Minh City officially began operation after years of delays. In the digital infrastructure sector, 5G networks were officially deployed for commercial use in Vietnam. Additionally, the government presented the proposal to the National Assembly for the investment in the high-speed railway project on the North-South route and restarted the Ninh Thuận nuclear power project. The three railway projects connecting with China are also being actively and decisively promoted.

THE WORLD Geopolitics instability Mr. Trump won decisively, defeating Ms. Harris both in the total number of electoral votes and popular votes to become the 47th President of the United States, with the inauguration scheduled for January 20th. His economic and tariff policies are expected to have a significant impact on trade partners and are highly anticipated. Nearly three years have passed, and Russia has yet to declare the achievement of its initial goals for the special military operation in Ukraine. However, by the end of this year, there have been positive peace signals as Russian President Vladimir Putin stated that Slovakia is a suitable location for potential future negotiations to resolve the Ukraine conflict. The Israel-Hamas conflict shows no signs of ending. Meanwhile, Israel and Iran have repeatedly engaged in missile attacks on each other’s territories. The Israeli military also continues to clash with the Houthi group in Yemen and Hezbollah in Lebanon. In Syria, opposition forces have overthrown the government, seized the capital Damascus, forcing President Bashar al-Assad to leave the country, thus ending the 13-year civil war and more than 50 years of rule by the Assad family. – The BRICS group, initially consisting of Brazil, Russia, India, China, and South Africa, officially welcomed new members this year, including Iran, Egypt, Ethiopia, and the United Arab Emirates. Many other countries are also expressing interest in joining BRICS, demonstrating the growing economic and political influence of this group on the international stage. North Korea’s National Assembly amended the Constitution, designating South Korea as a “hostile country.” This move came after North Korean leader Kim Jong Un’s statement of abandoning the goal of reunification of the Korean Peninsula, amidst escalating tensions with South Korea. Relations between the two Koreas have now reached their lowest point in many years. South Korean President Yoon Suk-yeol declared martial law on the night of December 3rd, citing the need to “protect the country from threats from North Korea and eliminate forces against the state, pro-North Korean, as well as protect the constitutional order of freedom.” This marked the first time South Korea has imposed martial law in 44 years. He was then ordered to be arrested by the South Korean National Assembly for this action. The economy is sluggish, with signals of loosening emerging. In 2024, the global economic picture is bleak, with a noticeable decline. Economic growth is slowing, inflation remains high and difficult to control, while geopolitical crises and trade tensions continue to increase instability. Many countries are facing the burden of public debt, making recovery and development fragile. Challenges from climate change and natural disasters are also rising, exacerbating the situation. The world is entering a period of difficulty, which is also why major economies are entering a cycle of easing policies to support recovery and stimulate growth amid this uncertainty: On December 18, the U.S. Federal Reserve (FED) cut interest rates by 0.25 percentage points, marking the third consecutive rate cut, bringing the key interest rate to a target range of 4.25%-4.5%. The Bank of Canada (BoC) continued its second consecutive rate cut, bringing the interest rate down to 4.5%. The Bank of England (BOE) has implemented two 0.25 percentage point rate cuts this year, bringing the benchmark interest rate to 4.75%. The European Central Bank has lowered interest rates for the fourth time in 2024 to 3% and has left open the possibility of further easing in 2025. China has cut its one-year Loan Prime Rate (LPR) by 0.25% for the second time, reducing it to 3.10% from the previous 3.35%. The Bank of Korea (BOK) has lowered its base interest rate by 25 basis points to 3.25% following a meeting of the Monetary Policy Committee, marking the first rate cut in four years.

EVENT HIGHLIGHTS
GATEWAY TO U.S. STOCK MARKET – LISTING ON NASDAQ
ASART, alongside industry experts, participated, listened, and shared insights on strategies to assist Vietnamese businesses in listing on U.S. stock exchanges.

The minimum cost that businesses must bear during the listing process on U.S. stock exchanges averages between $2-10 million (excluding additional expenses), a relatively significant amount for most Vietnamese enterprises.

Despite the immense potential, Vietnamese businesses still face numerous barriers when aiming to list on U.S. stock exchanges, primarily including:
– The disparity between Vietnamese Accounting Standards (VAS) and International Financial Reporting Standards (IFRS).
– A legal system that is not fully aligned with international regulations.
– Limited levels of transparency and information disclosure.
– Insufficient capacity to comply with administrative and corporate governance requirements.

Similar to listing in Vietnam, listing in the U.S. is not an end goal but rather a tool to help businesses achieve specific objectives. Therefore, it is crucial for enterprises to consider not only how to list but also why they are listing!

What are the company’s goals? What is the post-listing plan? These are the core questions that need to be addressed. In reality, many businesses, after listing, face challenges such as brain drain, disclosure of trade secrets, inefficient operations, and unhealthy shareholder relationships, leading to dilemmas where continuing the listing is problematic, and delisting is equally unfavorable.

Listing in general, and on U.S. stock exchanges in particular, is a remarkable milestone. However, successful listing only truly materializes when a company is thoroughly prepared, has a clear vision and objectives, and a sustainable development strategy in place.

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Disclaimer 
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Where it contains statements, estimates, and projections with respect to the anticipated future performance of Vietnam, markets, companies, employees and related figures, such statements, estimates, and projections may or may not prove to be correct. There is neither representation nor guarantee made on the accuracy and completeness of the content presented.

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