Mr. Nguyen Viet Quang, CEO of Vingroup, speaks on the topic: Capital mobilization through the stock market
On the morning of February 28, in Hanoi, Prime Minister Pham Minh Chinh chaired a conference to implement the tasks of developing the securities market in 2024. At the conference, Mr. Nguyen Viet Quang, CEO of Vingroup (stock code: VIC), stated that mobilizing capital through the stock market is an indispensable method of capital mobilization in a developing stock market and is becoming increasingly popular and effective in Vietnam.
The development of the capital market in Vietnam has gone through many stages, with rapid growth in scale, diversity of products, and an increasingly improved legal framework to create a fair and transparent playing field for all investors. Companies can mobilize capital through issuing stocks and bonds. Investors can come from domestic or international sources, aiding the development of businesses by providing timely and cost-effective capital. Thousands of foreign investors have also poured billions of US dollars into Vietnamese companies indirectly through the Vietnamese stock market.
Mr. Nguyen Viet Quang shared that Vingroup, as a diversified private conglomerate, has always aimed for the most stringent international standards. Vingroup has a professional operating system and a risk management system to navigate the challenges of the global market. Vingroup has been involved in the Vietnam Stock Exchange from early on, and the company’s development has always been supported by a wide range of capital mobilization channels, with the stock market playing a major role.
Currently, Vingroup has three companies, namely Vingroup, Vinhomes Corporation (stock code: VHM), and Vincom Retail JSC (stock code: VRE), with their stocks listed on the Ho Chi Minh City Stock Exchange (HOSE), with a total market capitalization value of up to 419,000 billion VND, equivalent to over 17 billion USD. These companies have successfully mobilized billions of USD through the Vietnam and international stock markets.
Especially, on August 15, 2023, VinFast, an electric vehicle manufacturer and a subsidiary of Vingroup, became the first Vietnamese company to be officially listed on Nasdaq (USA). Vingroup has had many experiences in capital mobilization from bond issuances and listings like in the Singapore stock market, but the Nasdaq listing opens up new avenues for capital mobilization with large and reputable global investors. Moreover, Vingroup must also comply with strict regulations on management and information disclosure in the world’s most developed financial market. However, Mr. Nguyen Viet Quang said that he did not feel overwhelmed because of the careful preparation and the already-established compliance with similar regulations in Vietnam.
In the nearly 20 years of presence in the Vietnam stock market, the key benefits that Vingroup has achieved include:
Firstly, more professional and transparent management. The recent stringent regulations on corporate governance, most notably Circular 116/2020/TT-BTC issued on December 31, 2020, have aimed to establish a serious and transparent governance mechanism, ensuring strict control and public disclosure of business operations.
Secondly, capital mobilization to support business operations. To date, Vingroup has engaged in a wide range of capital mobilization activities, such as private and public stock issuances and private and public bond issuances.
During these activities, the company has connected with strategic investors and shareholders with extensive experience in various fields, including management, production, sales channels, and technology. In addition, when we have strategic shareholders conducting evaluations of the company, it gives us insight into areas that need improvement to develop the business more effectively.
In terms of brand promotion and corporate image, Vingroup has gained more attention from domestic and foreign investors, and those who take an interest in our company learn more about the diverse ecosystem of Vingroup, as well as our products and services in the Vietnamese and global markets.
In 2024, Vingroup will continue to plan for capital mobilization through credit channels domestically and internationally, as well as issuing additional stocks and bonds domestically and internationally to support normal business activities and expand the international market
CEO Vingroup also mentioned that during the nearly 20 years of development in the stock market, the company has received support from regulatory authorities such as the Ministry of Finance, the State Securities Commission, the Stock Exchanges, and the Vietnam Securities Depository.
To further enhance the effectiveness of capital mobilization for the company and its continuous improvement, Vingroup proposes the following recommendations to the Government and management agencies: Continue researching and implementing solutions to elevate the Vietnam stock market. In addition, continue reviewing and improving existing legal documents, researching and issuing new regulations on financial products to attract investors and develop the market.
