Unveiling the Top 3 Barriers in Investor-Stock Market Relationships

Upgrading to Welcome Billions in Investment

On October 2nd, Mr. Ngô Hoàng Long, Director of the Research Center at VPBank Securities (VPBankS), discussed the current stock market dynamics. With the VN-Index surpassing 1,600 points, international investors in Vietnam are emerging as major stakeholders, focusing on long-term investments.

A decade ago, investors favored retail and consumer sectors, but now there’s a shift toward finance, particularly banking. Private banks are gaining more traction than state-owned ones. According to Mr. Long, companies with strong Investor Relations (IR) often have higher international ownership.

Meanwhile, Ms. Vũ Ngọc Linh, Director of Market Analysis and Research at VinaCapital, noted that while 95% of transactions are from individuals, an upgrade in October could bring $1 billion in ETF capital, followed by $5-6 billion from active funds.

“As a foreign investor with over 20 years in Vietnam, we seek clarity on vision, core values, and operational efficiency. Transparency and consistent ESG practices are critical for long-term trust,” Ms. Linh emphasized.

Effective IR acts as the central nervous system connecting businesses to the market. Beyond reporting numbers, managing expectations through a compelling, consistent narrative helps secure affordable capital and maximizes enterprise value.

Transparency is Key

Dr. Đàm Nhân Đức, Chief Economist at Military Commercial Joint Stock Bank, stressed the importance of data in IR. “To represent an organization, IR professionals must deeply understand the industry, policies, and competitors,” he said.

With Vietnam’s rapid growth, investors are eyeing high-potential sectors like banking. “Supporting Oceanbank has boosted MB’s credit limits, positioning it for doubled revenue in the next three years amid digital transformation,” Mr. Đức added.

Ms. Vũ Ngọc Linh highlighted three key IR challenges: cross-departmental collaboration, leadership support, and strategic investment in IR. “Without clear directives from leadership, IR efforts lack impact,” she explained.

She cited a case where a major bank’s vague growth strategy hindered fundraising. Similarly, a leading exporter’s reliance on historical data instead of future projections disappointed investors. Empowering departments with decision-making authority is essential for credible storytelling.

The second barrier is treating IR as a compliance formality rather than a value driver. Lastly, IR must be a strategic function, not an administrative one, to thrive.

Mr. Lê Nhị Năng, Head of the State Securities Commission’s HCMC Office, emphasized the importance of disclosure regulations. Despite efforts to ensure fairness, 80% of market violations involve disclosure breaches.

Addressing concerns about trade secrets, Mr. Năng clarified that critical information must be disclosed, but companies can propose confidentiality for sensitive data to the SSC.