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Investment banking services are becoming an important part of Vietnam’s stock market. What are your thoughts on the potential development of this service?
– In Vietnam, along with the overall development of the stock market, investment banking services have become more professional and serve as an essential bridge for businesses seeking to raise capital. As a result, this service has made significant contributions:
Firstly, the creation of primary market products, such as initial public offering (IPO) advisory, listing advisory, trading registration, equity issuance, and underwriting.
Secondly, enhancing the secondary market liquidity through services such as state capital divestment advisory and mergers and acquisitions (M&A) for businesses.
Thirdly, supporting businesses in standardizing, improving, and enhancing transparency and the quality of goods in the stock market through corporate governance consulting services, including investor relations (IR) advisory, annual general meeting advisory, and annual report advisory.
In the coming years, investment banking services will have significant potential and are expected to bring substantial revenue to securities companies. In addition to advisory fees, investment banking also brings value to the brand’s reputation, competitiveness, and the development of brokerage, financial services (margin lending), and proprietary trading for securities companies.
Therefore, most large securities companies are prioritizing investment in this sector, leading to intense competition and driving the continuous improvement of service quality.
The upgrade from a frontier to an emerging market will enhance the prestige and position of Vietnam’s stock market and attract foreign investment. What should businesses do to access this capital?
– The expected upgrade of Vietnam’s stock market presents a significant opportunity for Vietnamese businesses to access foreign capital and explore investment opportunities. However, foreign capital is discerning when it comes to choosing investment options in the Vietnamese stock market.
To seize this opportunity, Vietnamese businesses must have detailed and clear business strategies and take immediate action to improve their governance capabilities. They should adopt best practices and go beyond compliance in investor relations (IR) and English-language information disclosure to provide domestic and foreign investors with a clearer understanding of their business.
Proper governance and transparency in information disclosure will build investor confidence and support their investment decisions, fostering the future growth of Vietnamese businesses.
Are there any other factors that Vietnamese businesses should focus on to attract the attention of large foreign investors?
– Regulatory bodies are implementing specific solutions to support the upgrade of the stock market from frontier to emerging status. One of the purposes of this upgrade is to attract foreign capital, but the question is how businesses can attract the attention of large investors and high-potential investment funds.
The answer lies in transparent governance, a strategy focused on minimizing environmental impact, and creating social value. In other words, it is about corporate governance linked to ESG factors, which foreign investors highly value and consider.
As a consulting partner, FPTS believes that Vietnamese businesses need to act quickly and make concrete changes regarding ESG development. Firstly, business leaders must recognize the urgency and importance of improving transparent governance linked to ESG as a mandatory requirement. ESG is not a superficial trend but an inevitable evolution that businesses must embrace.
While business growth is crucial, sustainable governance is essential for survival. Business owners should not wait until they face a crisis to change their thinking about ESG. Instead, they should view governance as a resource for existence, a competitive advantage, and a means to attract capital.
Secondly, businesses need to develop specific and clear action plans to enhance transparent governance linked to ESG. Having a dedicated board member responsible for ESG will enable the creation of plans, close monitoring, and ensuring the effective implementation of ESG practices aligned with the company’s reality.
In summary, only with a comprehensive and accurate understanding, coupled with concrete and determined actions, can Vietnamese businesses enhance transparent governance linked to ESG and become the choice of many professional investors.
How has FPTS provided consulting services to businesses in the past?
– FPTS categorizes its corporate consulting services into three main groups:
Corporate Governance Consulting Services: Advising on the development of charters and corporate regulations; investor relations advisory; annual general meeting advisory, etc. These services help businesses establish governance rules that comply with legal requirements and align with industry best practices and the specific characteristics of each company.
Corporate Management Consulting Services: Providing business plan advisory, financial forecasting, and human resource management tools to help businesses implement well-structured business ideas and enhance their credibility with investors when evaluating their business plans.
Investment Banking Services: Advising on issuance, listing, mergers and acquisitions, etc. FPTS can facilitate suitable deals considering market conditions, the capital needs of businesses, and investors’ expectations, thereby bringing the highest benefits to all parties.
FPTS is also committed to contributing to the development of a healthy stock market. We regularly organize workshops and disseminate information about securities laws through various communication channels to support and enable businesses to comply with relevant legal regulations.
Financial Consulting Team of FPTS Ho Chi Minh City Branch
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Thank you for your insights.
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