ASSESSMENT  

Vinpearl’s potential listing on the Vietnamese stock market would bring fresh momentum, adding another member to the Vingroup “family” on the exchange. As Vietnam’s leading tourism and resort brand, Vinpearl operates five-star and above hotel and beach villa complexes. Its listing could enhance the appeal of Vietnamese stocks, attracting more capital with a high-quality new investment option.

However, Vingroup’s broader financial situation raises some concerns. By January 2025, its market capitalization had dropped to just $6 billion, a significant decline since VinFast’s 2023 IPO. This raises speculation that Vinpearl’s IPO could be an effort to offset losses in other sectors. While Vinpearl’s expansion is positive, its reliance on tourism and internal asset transfers within Vingroup raises questions about its long-term strategy. That said, with strong expansion plans and the ability to attract fresh capital, this IPO could help Vingroup optimize its investment portfolio and strengthen its financial position amid ongoing market volatility.

From a market perspective, in the context of a lack of new stocks, Vinpearl’s IPO would increase market supply, provide more choices for foreign investors, and at the same time enhance Vietnam’s standing in global financial markets, especially when the market upgrading process is approaching.

With few IPOs in recent years, Vietnam’s stock market has suffered from stagnation, reduced liquidity, and slower capitalization growth. The Vinpearl IPO could boost market capitalization, improve liquidity, and diversify industry representation, strengthening its appeal to investors. MSCI’s upgrade criteria include market scale, liquidity, and accessibility—a broader, deeper market would attract more foreign capital, supporting Vietnam’s push for an upgrade.

Vinpearl’s IPO would introduce a new investment opportunity in the rapidly recovering tourism and hospitality sector. Vietnam’s tourism industry is projected to grow 10-15% annually, creating strong potential for foreign investors. With its large scale and backing from Vingroup, Vinpearl is well-positioned to attract foreign capital, especially as Vietnam moves closer to reclassification from a Frontier to an Emerging Market. This helps foreign investors diversify their portfolios, especially in the context of the market lacking new options.

GTJASVN_FLASH NOTE_ Assessment of Vinpearl’s Listing Activities_12.03.2025_ENG