{"id":803,"date":"2018-06-25T10:20:26","date_gmt":"2018-06-25T03:20:26","guid":{"rendered":"http:\/\/blogs.duanemorris.com\/vietnam\/?p=803"},"modified":"2018-06-25T10:21:15","modified_gmt":"2018-06-25T03:21:15","slug":"vietnam-thomson-reuters-interviewing-dr-oliver-massmann-on-initial-public-offerings-ipo","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/vietnam\/2018\/06\/25\/vietnam-thomson-reuters-interviewing-dr-oliver-massmann-on-initial-public-offerings-ipo\/","title":{"rendered":"VIETNAM \u2013 THOMSON REUTERS INTERVIEWING DR. OLIVER MASSMANN ON INITIAL PUBLIC OFFERINGS (IPO)"},"content":{"rendered":"

1.\tWhy has there been so much IPO activity in Vietnam of late? What has been driving it?<\/strong><\/p>\n

The investors are very optimistic about the development of Vietnam\u2019s market. Vietnam\u2019s GDP in Q1\/2018 is 7.4%, the highest rate in the past 10 years. In addition, there is growing middle class with great purchasing power. The World Bank predicts that the middle class will account for 26% of Vietnam\u2019s population by 2026, double than the current statistics. The Government has also made several attempts to improve the investment environment.<\/p>\n

2.\tHow is this resulting in the legal work that the law firm is seeing out of Vietnam? What kinds of clients are you advising, and what kinds of advice are they requesting? <\/strong><\/p>\n

When the investors are new to the market, they will need legal advice to secure their investment and comply with Vietnam laws. We see this a great chance to improve our business and show our expertise in the sector. Most of our clients are from the US and Europe, who would like to take advantage of the upcoming free trade agreements such as the EU- Vietnam FTA and the CPTPP and expand their business to other neighboring countries. We mainly advise clients on due diligence of the partner, how to structure the investment and the best cooperation form.<\/p>\n

3.\tWhat are some of the key trends you have seen among Vietnamese IPOs? How are these different from other markets in Asia\/Southeast Asia?<\/strong><\/p>\n

In my view, the Government of Vietnam is more than ever expected to get money to cover its huge investment and regular payment expenses. This would serve as a key engine for a new waive of equitisiation of large State owned enterprises, especially after the successful placement of Sabeco\u2019s shares.
\nIn a short term, the cash flow may come to portfolio of SCIC\u2019s list including major manufacturing companies but, in a long run, we may expect a come-back of banks, retails and real estate\u2019s shares.
\nIn terms of capital sources, we can expect a cash flow coming from major Asian economies such as Japan, Korea, Singapore, Hong Kong and especially mainland China which increases their strong presence in the market.
\nWhen it comes to how the IPO market of Vietnam may differ from the rest of Asia\/Southeast Asia, we strongly believe that the equitisation of SOEs of a larger scale and with a strong determination from the top would play a key role in driving the market.<\/p>\n

4.\tWhat industries are seeing the most activity \u2013 and can expect to see the most activity going forward? Why?<\/strong><\/p>\n

Financial (with major focus on real estate) sector, banking, consumption services and power sectors have been and will see further significant growth. The reason is in Q2\/2018, many enterprises with large capitalization and of great interest to foreign investors in these sectors are now preparing for the public listing.<\/p>\n

5.\tWhat are your predictions for the Vietnam IPO market in the immediate future?<\/strong><\/p>\n

The Vietnam IPO market will continue the growth. Leading enterprises with good financial capacity and high growth in the sectors will attract both foreign and domestic investment. It is noted that in 2018, there will be a number of state-owned enterprises privatized under the Prime Minister\u2019s decision. These enterprises include Habeco, Vinamilk, etc. which is believed to be successfully privatized following the recent success of Sabeco, another state-owned enterprise in the beverage sector under the Ministry of Industry and Trade\u2019s management.<\/p>\n

*************
\nPlease do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com or any lawyer in our office listing if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General of Duane Morris Vietnam LLC.<\/p>\n","protected":false},"excerpt":{"rendered":"

1. Why has there been so much IPO activity in Vietnam of late? What has been driving it? The investors are very optimistic about the development of Vietnam\u2019s market. Vietnam\u2019s GDP in Q1\/2018 is 7.4%, the highest rate in the past 10 years. In addition, there is growing middle class with great purchasing power. The … <\/p>\n

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