Vietnam’s stock market capitalisation rose 13.5 percent against the end of last year, reaching a record high of 3.98 quadrillion VND (170.93 billion USD), according to the State Securities Commission (SSC).
The value was equivalent to 79.6 percent of the country’s gross domestic product (GDP).
Since the outset of the year, foreign capital inflows into the stock market were estimated at 2.8 billion USD, a bit lower than 2.92 billion USD recorded in 2017.
However, the figure showed that foreign investors still have confidence in the Vietnamese stock market in the context that they have withdrawn more than 27.34 billion US from emerging markets like the Republic of Korea, Thailand, Indonesia, the Philippines, India, and Taiwan.
Large share transactions have helped lure both domestic and foreign capital into the stock market in 2018.
On May 18, Vinhomes JSC sold nearly 268 million shares via put-through transactions on the Ho Chi Minh Stock Exchange (HoSE).
The deal lured big attention from investors as the number of shares asked by potential investors was four times higher than the amount of shares offered by Vinhomes.
The value of the deal was 1.35 billion USD, and it was the biggest deal in the last two years, exceeding the IPO values of other firms such as VPBank, Techcombank, Vietjet and Vincom Retail.
The stock market also secured some 922 million USD from the Vietnam Technological and Commercial Joint Stock Bank (Techcombank)’s initial public offering on April 27. The bank put up for sale more than 164 million shares at the price of 120,000 VND (5.62 USD) per share.
The year 2018 also witnessed impressive state divestment, including the sale of 78.99 percent of stakes at the Vietnam Construction and Import-Export JSC (Vinaconex). The State Capital Investment Corporation (SCIC) sold its total ownership at the firm for 7.36 trillion VND (327.4 million USD). Meanwhile, the Viettel Military Industry and Telecoms Group also offloaded its 94 million Vinaconex shares for 2 trillion VND (86.9 million USD).
Earlier, some 16.6 trillion VND (712.9 million USD) was raised from the IPO of Binh Son Refining and Petrochemical Company (BRS), PetroVietnam Oil Corporation (PV Oil), and PetroVietnam Power Corporation (PV Power).