Vietnam is preparing for a revival of the 2018 golden period of IPOs

VIETNAM is launching a new wave of market reforms whose centrepiece is to stage a cluster of initial public offerings (IPOs) of its most profitable state-owned banks. An ambitious listing programme began in early 2018 with spectacularly successful IPOs of a few commercial banks, but it was then plagued by liquidity crises at some banks that eventually delayed their listing.

The Vietnamese government wants the IPO process completed soon. Its bullishness stems from the triumph of the IPO of the largest private sector lender, Techcombank.

In April 2018, Techcombank raised US$922 million from global investors who were impressed with its plans to expand aggressively into retail banking, cashing in on buoyant demand for financial services such as credit cards and auto loans. Techcombank is Vietnam's second biggest listed bank after state-controlled Vietcombank.