Vietnam mulls setting up a stock exchange for startups

Vietnam is exploring the possibility of establishing a stock exchange particularly for startups to support the burgeoning local startup space, the country’s deputy prime minister and former finance minister Vuong Dinh Hue said on Tuesday.

A comprehensive ecosystem for startups needs a convergence of all critical ingredients including innovation, legal framework, infrastructure and support services, and participation of investors and financial institutions, according to a press release from a conference on “Developing the capital market for startups” held in Ho Chi Minh City.

“However, Vietnam is in the early stage of forming that ecosystem, and the greatest challenge we are facing is fundraising for the startups,” the statement said.

Investors are still reluctant to make significant investments into Vietnamese startups, largely due to the lack of exits avenues, according to the National Financial Supervisory Commission. “Thus, the formation of such an exchange will pay the way for extended funding,” it added.

“The Ho Chi Minh City Stock Exchange said it would take five years (to launch the exchange). But that is too long, and the government would want it to be done in two or three years,” Hue said.

In Asia, the Korea New Exchange required around three years to be set up. Established in 2013, the Korean startup exchange has so far attracted almost 90 listings, a three-fold increase since its first operation.

The Vietnamese exchange might be based in Ho Chi Minh City, which endeavours to become the startup hub of the country and the “Silicon Valley of Southeast Asia”, according to Tran Vinh Tuyen, vice chairman of the city committee. The southern city currently operates a startup investment fund with the initial size of VND30 billion ($1.34 million), which will be boosted to VND100 billion next year. “The fund is a stepping stone to call for more contribution of investors,” Tuyen said.

Also read:

Vietnam Dealbook: New $1.3m startup fund launched

Exits are tricky for investors in Vietnamese startups

Vietnam launches slew of initiatives to give a push to startup ecosystem

No VC fund, no startup ecosystem, Tech minister Quan tells Vietnam’s National Assembly

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.