Diverse and Competitive Landscape
In your opinion, how is the IB market in Vietnam developing?
Mr. Nguyen Le Van, Director of IB: The IB market in Vietnam can be considered diverse in terms of its activities, revolving around core services such as advisory and underwriting, listing advisory, and M&A advisory. This diversity is driven by the wave of private enterprise development, creating more opportunities for securities companies to engage in IB activities.
While IB activities are diverse, the competition in this business segment has been intense for many years. In reality, not all securities companies have the desire to participate in this segment (for various reasons), leading to a disproportionate market share concentrated among a few large brokerage firms.
The rewards of a successful IB deal are significant, but for new clients, profitability is low, while costs are high. Additionally, unlike traditional securities brokerage services, building relationships and maintaining a strong brand to continue providing services can be challenging.
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What are your thoughts on the potential development of the IB market, especially after the upgrade of the stock market?
– Regarding the potential development of the IB market in Vietnam, BETA believes that there remains a strong demand for private investment. FDI investors often seek long-term investment opportunities through direct equity investments in Vietnamese enterprises. In the future, as the legal framework evolves, it will create more opportunities for FDI and indirectly support a more vibrant IB industry.
The stock market upgrade will undoubtedly attract significant foreign investment, leading to a more dynamic and active Vietnamese stock market overall.
In parallel, the efforts of regulatory authorities to upgrade technology systems and develop a more detailed legal framework are expected to introduce innovative products to the market. With a more diverse range of products and services, IB activities will undoubtedly become more prevalent and attract greater interest from enterprises and investors.
IR enables companies to access cheaper capital
How does the IR (investor relations) activity of enterprises contribute to the success of IPOs, listings, and share offerings?
– IR activities play a crucial role before and after IPOs, listings, and securities offerings. Specifically, when enterprises develop policies and strategies to promote IR activities, they establish credibility with business partners and shareholders, enhancing their brand reputation. This, in turn, attracts strategic investors and enables enterprises to access cheaper capital, improve liquidity, and stabilize share prices during market downturns.
Additionally, IR serves as a channel for investors to support enterprise owners and executives in generating new business ideas and developing more effective business strategies for the future.
How should enterprises approach ESG to attract investment capital?
– The priority enterprises place on ESG criteria depends on their scale, business characteristics, development orientation, and existing strengths.
Overall, regardless of their nature, public enterprises need to focus on governance within their organizations. Simultaneously, following global trends, environmental and social factors are aspects that enterprises must adapt to, adhering to standards and regulations.
IB will be BETA’s core competency
BETA Securities’ IB Team
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Can you tell us more about BETA Securities’ IB activities in the past year?
– Currently, BETA is actively engaged in privatization consulting, state capital divestment, and securities issuance. These activities share a common goal of seeking private sector participation in enterprises and providing support with other securities-related procedures.
BETA believes that IB services should not merely focus on IB advisory fees, which are often considered the tip of the iceberg. More importantly, during privatization or successful state capital auctions in joint-stock companies, securities companies can offer additional services such as shareholder management, information disclosure, media and event organization, and even self-investment in the privatized company if its business prospects are promising.
What sets BETA apart from its competitors in the IB segment?
– Our IB services are similar to those offered by other securities companies, but we have a strong track record and extensive experience in successfully executing numerous deals related to privatization advisory, state capital divestment, and strategic investor search for our clients. BETA is gradually building a solid reputation with both clients and investors.
In the next five years, how will IB activities contribute to BETA’s business results?
– In BETA’s development strategy, we consider IB a core competency and a critical trend in the future of Vietnam’s stock market.
Therefore, IB activities will remain a primary contributor to our overall business performance. In the next five years, in addition to leveraging our experience and strengths in existing advisory areas, BETA will focus on M&A services, advisory services for large listed companies, securities issuance advisory, and active participation in IPOs. We aim to become a vital advisor and connector in capital mobilization and investment cooperation between domestic enterprises and foreign investors.
Thank you for your insights, Mr. Van.
IR Awards 2024: Just 3 Days Left to Cast Your Vote!
The IR Awards 2024 is an initiative to recognize and celebrate listed companies with outstanding investor relations practices. We are excited to announce that the public voting for the IR Awards is now live and will be accepting votes for two weeks, starting from 00:00 on August 1, 2024, and closing at 24:00 on August 14, 2024. This is your chance to have a say and show your support for the companies that excel in investor relations.
“Attracting Investment with IR: A Strategy for Success.”
A sustainable and thriving business is not just about efficient operations, but also about prioritizing investor relations (IR). This crucial aspect optimizes stock value and attracts investment, particularly from foreign investors.
