“IR is no longer about ‘number-crunching’ but about ‘story-shaping’.”

In the world of capital markets, information is the raw material, but trust is the ultimate product. Investor Relations (IR) in Vietnam is entering a new era, where businesses are not just providing data but crafting experiences for investors.

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This is a pivotal shift: from a legal compliance process to a strategic platform that enables businesses to manage expectations, maintain sustainable valuations, and optimize capital mobilization.

Moving Beyond Number-Crunching

In its infancy, IR in Vietnam was often associated with quarterly reports, resolutions, and shareholder meeting documents—all of which involved number-crunching and announcements. However, today’s capital markets demand more.

Investors want to understand why a company chooses a particular strategy, not just the outcomes. They value consistency between the leadership’s words and actions. They appreciate the ability to forecast and explain fluctuations rather than merely react to them.

In developed markets, IR is an art of storytelling backed by data. Successful companies don’t merely report profits; they showcase the journey behind those profits and their long-term vision.

Trust: The Strongest Currency in Capital Markets

Within a business, capital is a critical resource for operations, investments, production, and expenses such as salaries and bonuses. However, without trust from stakeholders—investors, partners, customers, and employees—a company loses the crucial element for attracting and mobilizing capital and sustaining operations.

In capital markets, three pillars form the foundation of sustainable trust: transparency, where companies provide valuable and explanatory information; strategy consistency, where messages and actions align; and proactivity, where companies anticipate and address investors’ concerns before they arise.

These pillars can be established through effective IR practices backed by a well-thought-out strategy. Indeed, companies with strong IR tend to be valued higher than their industry peers, and during crises, their stocks decline less and recover faster. This is an intangible “insurance policy” that the market doesn’t record on the balance sheet.

From the Starting Line to the Upgrade Game

Many businesses consider listing as the ultimate goal, but it’s actually the starting point of a new game—a game of transparency, brand building, and liquidity.

Post-listing, companies need to maintain effective IR to surpass their initial valuations—an aspect often overlooked. Capital markets require persistence and consistency in building investor relationships.

As Vietnam transitions from a “frontier” to an “emerging” market, a wave of ETF and active fund investments will flow in. However, only companies with international-standard IR practices will be able to capitalize on these opportunities.

IR is no longer a “nine-to-five” job for the administrative department. It is the strategic infrastructure of trust, where businesses and investors meet on a common language of transparency, consistency, and proactivity.

Companies that integrate IR into their growth strategy will optimize their capital raising, maintain sustainable valuations, and expand their opportunities for strategic collaborations on a global scale.

In the information age, “designing trust” through effective IR is not just a competitive advantage; it has become a condition for survival in modern capital markets.

Nguyá»…n Hoàng Tùng, Director of Agriseco Securities Company’s Southern Branch

– 10:00 04/09/2025

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