Vietnam's stock market is experiencing an unprecedented surge, with the VN-Index climbing to 1507 points as of August 4, 2025, reflecting a 26.88% increase year-over-year. Despite this bullish trend, a perplexing question looms over the market: why are Vietnam's thriving tech firms, a key driver of the nation's digital economy, largely absent from public listings on the Ho Chi Minh Stock Exchange (HOSE) or Hanoi Stock Exchange (HNX)?
The tech sector in Vietnam has been hailed as a cornerstone of the country's economic transformation, fueled by a young, tech-savvy workforce and supportive government policies aiming for the digital economy to contribute 30% of GDP by 2030. Companies in tech and digital innovation are attracting significant foreign investment and attention, with giants like NVIDIA partnering with local firms to bolster Vietnam's tech landscape. Yet, many of these firms opt to remain private or seek funding through venture capital rather than going public.
Industry experts point to several barriers preventing tech firms from listing. The cumbersome bureaucratic procedures and outdated technological infrastructure of Vietnam's stock exchanges, such as the HOSE's decades-old platform that struggled with trading surges in 2021, deter companies seeking agility and efficiency. Additionally, Vietnam's classification as a frontier market by Morgan Stanley Capital International limits access to larger global asset managers, reducing the appeal of a public listing.
Moreover, many tech startups prioritize rapid growth and reinvestment over the regulatory scrutiny and short-term performance pressures that come with being publicly traded. Foreign ownership limits (FOLs) and concerns over equal rights for international investors further complicate the decision, as firms fear losing control or facing undervaluation in a market with pricing inefficiencies.
Despite these challenges, there is optimism for change. The Vietnamese government is pushing for market reforms and an upgrade to emerging market status by 2025, which could address infrastructure issues and attract more tech listings. Legislative changes and technological advancements in 2024 have already shown promise in reshaping investor behavior and market dynamics.
As Vietnam's digital asset and tech markets continue to draw major players, the question remains whether these reforms will be enough to entice the country's most innovative firms to list domestically. For now, investors and analysts alike are watching closely, hopeful that Vietnam's booming market will soon reflect the full strength of its tech sector on the public stage.
Alfred Lee
