Dragon Capital Predicts Busier Vietnamese IPO Pipeline After Upgrade

Tom Burroughes

13 November 2025

, the Vietnam-focused fund manager with $5 billion in client assets, expects that the Southeast Asian country will see a rise in company IPOs after being upgraded to “emerging market” from “frontier” status.

In October, FTSE Russell, the index provider, “promoted” Vietnam to emerging market classification, which widens the range of investors who are able to put money into Vietnam-based companies. This, hopefully, will create a virtuous upward circle of more listings, investor demand and rising liquidity.

“Emerging market status confers prestige and credibility. While an upgrade itself doesn’t guarantee a flood of IPOs, it creates favourable conditions for a healthier IPO pipeline: higher demand, higher valuations, and greater confidence,” Tuan Le, lead portfolio manager at Vietnam Enterprise Investments Ltd (VEIL) said in a note.

“This dynamic likely means more multinational investment banks will cover Vietnam and potentially underwrite Vietnamese IPOs, improving the capital raising process. We might see a pipeline of IPO candidates that had been waiting for market conditions to improve finally move forward,” Tuan Le continued. “While FTSE’s decision is a clear recognition of the government's efforts, what is even more significant is that Vietnam does not view this as the final destination. For the first time, the government has laid out a comprehensive long-term strategy with specific actions to target FTSE Advanced EM and MSCI EM status by 2030.”

Dragon said the positive effect of a classification upgrade was seen in Saudi Arabia (in June 2018) following an upgrade which saw a surge in high-profile offerings.

“This dynamic likely means more multinational investment banks will cover Vietnam and potentially underwrite Vietnamese IPOs, improving the capital raising process. We might see a pipeline of IPO candidates that had been waiting for market conditions to improve finally move forward."

This news service has talked to Dragon Capital before in recent years about Vietnamese companies growth outlooks and risks from developments such as US president Donald Trump’s tariffs on Asian countries, including Japan.

See this guest article from Bank Syz about Vietnam and its economic potential.