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Headquarters of Tech unicorn VNG Joint Stock Company (VNZ). VNG is currently the leading game publisher in Vietnam , owing Zalo, the most popular messaging application in Vietnam with more than 75 million users. — Photo VNG |
UpCOM currently has 860 shares with nearly VND1.1 quadrillion market capitalization - the result of the strong transformation of UpCOM over the years.
At the end of 2013, the market capitalization of UpCOM was less than a quarter of HNX, reaching only nearly VND26 trillion. By 2016, this number had skyrocketed to more than VND300 trillion, doubling the HNX.
As of August 24, 2023, with nearly VND1.1 quadrillion in market capitalization, the size of UpCOM is 3.7 times higher than HNX and nearly one fourth of HoSE. Trading atmosphere on this floor is also much more exciting with the appearance of new and quality stocks.
UpCOM's leap in trading volume and market capitalization was driven by the issuance of Circular 180/2015/TT-BTC (Circular 180) by the Ministry of Finance, providing guidance on trading registration on the unlisted securities trading system.
The introduction of Circular 180 has led to a wave of State-owned enterprises (SOEs) equitising and trading on UpCOM, with many famous names such as Vietnam Airlines (HVN), Airports Corporation of Vietnam (ACV), The Vietnam Engine and Agricultural Machinery Corporation (VEAM), Becamex (BCM), Viet Tien Garment Corporation (VGG), Vietnam National Textile and Garment Group (Vinatex or VGT), Viettel Post Joint Stock Corporation (VTP), Viettel Global (VGI), Bình Sơn Refinery and Petrochemical (BSR), PV Oil (OIL), and The Vietnam Maritime Corporation (VIMC or MVN).
In addition to the SOEs group, UpCOM also welcomed many large private enterprises, such as Masan Consumer (MCH), Masan High-Tech Materials (MSR), Masan MEATLife (MML), Gelex Electric (GEE), Quang Ngai Sugar (QNS), Minh Phu Seafood (MPC), An Cuong Wood (ACG) and Tech unicorn VNG Joint Stock Company (VNZ).
Change in quality
Not only the change in quantity, the quality of shares on UpCOM has also improved significantly. At the moment, UpCOM has 17 enterprises with market capitalization of over VND10 trillion, lower than HoSE but higher on HNX. In particular, UpCOM has eight representatives in the billion-dollar market capitalization club on the stock market while HNX has no name in this club.
Some notable names can be mentioned as Airports Corporation of Vietnam (ACV) with a market capitalization of VND7 billion. The corporation is currently managing, investing, and exploiting a system of 22 airports throughout the country, including nine international airports and 13 domestic airports. ACV is also the investor in the Long Thanh International Airport project.
Viettel Global has a market capitalization of more than US$3 billion. It owns a number of well-known telecommunications units abroad such as Metfone (Cambodia), and Unitel (Laos).
Binh Son Refinery and Petrochemical, with a capitalization of $2 billion, manages and operates Dung Quat Oil Refinery, with a designed capacity of 6.5 million tons of crude oil per year, meeting about one-third of gasoline consumption demand of the country.
VEAM Corp, a capital contributor in a joint venture with Toyota, Honda, and Ford, also attracts the attention of investors. Thanks to dividends of trillions of Vietnamese dong from these joint ventures, the profit of this corporation has been maintained for many years. VEAM Corp currently has a market capitalization of more than $2 billion.
In the group of private enterprises, Masan Consumer is the biggest name with a market capitalization of $2.4 billion. This is one of the largest consumer goods companies in Vietnam , with products including instant noodles (Omachi, Kokomi, Sagami), seasonings (Nam Ngu dipping sauce, Chinsu, Chinsu soy sauce), and mineral water (Vinh Hao, Vinacafe).
Another notable name is tech unicorn VNG Joint Stock Company (VNZ). VNG is currently the leading game publisher in Vietnam, owing Zalo, the most popular messaging application in Vietnam with more than 75 million users. Other typical products of VNG include the Zing MP3 online music player platform and the ZaloPay e-wallet.
VNG Limited, the shareholder holding 49 percent of VNG's capital, has submitted an application for registration to the US Securities and Exchange Commission and is expected to conduct a public offering (IPO) on the Nasdaq Global Select Market. If successful, VNG will be the next company after VinFast, to list the US stock exchange.
