DRs extend path to capital markets

Depositary receipts are emerging as a promising instrument for Vietnamese companies seeking to access international capital pools without the need to pursue direct listings on overseas stock exchanges.

- By Hazy Tran

The Vietnam Global Capital Access workshop organised by SSI Securities on June 18 highlighted the substantial scale of the global depositary receipts (DRs) market.

Total investment in DRs reached nearly $1.5 trillion in the most recent year. In terms of capital raising activity, companies worldwide raised approximately $5.5 billion through DR offerings over the past year, with more than $4 billion contributed by Asian issuers.

In Southeast Asia, more than 60 DR programmes are currently in operation across markets such as Thailand, the Philippines, and Indonesia, encompassing both capital-raising and non-capital-raising programmes.

The State Securities Commission’s vice chairman Bui Hoang Hai noted that Vietnamese companies need better access to long-term international capital, and global investors need better channels to understand, evaluate, and invest in Vietnam’s leading enterprises.

“Dual listings and the development of Vietnam’s international financial centre should be viewed as part of the same broader reform agenda: connecting Vietnam’s companies with global capital while continuing to strengthen the depth, transparency, and credibility of our domestic market,” he said.

Hai emphasised that global capital follows trust, and trust is built through transparency, governance, performance, and communication.