Is VNG’s Vietnam listing just a stopover en route to US markets?

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Hello reader,

A few years ago, my friends played a prank on me. They told me our Vietnamese friend was the son of Nguyen Xuan Phuc, the prime minister of Vietnam at the time – they did have the same family name.

But I was too smart to fall for that. After all, Nguyen is one of the most common Vietnamese family names.

However, I then did a Google search and compared photos of my friend’s father with those of the Prime Minister. The resemblance was uncanny. For the next two weeks, I actually thought he was the son of Vietnam’s prime minister.

Nguyen Xuan Phuc later became president of Vietnam.

The country he led has been on a tear in the past few years, attracting lots of investor interest.

VNG Group, Vietnam’s first tech unicorn, is hoping to ride that wave of interest by listing on the confusingly named Unlisted Public Company Market (UPCoM) – a board for firms in the country that are not yet listed on the Hanoi Stock Exchange.

In this week’s big story, my colleague, Huong, analyzes the company’s financial statements and business prospects.

Ultimately, VNG may be eyeing a listing in the US, with the listing on UPCoM purely to meet legal compliance.

The question is whether foreign investors will find the company attractive enough, given that its business is largely domestic.

While the Vietnamese market has lots of potential, it is still an emerging market and has faced political uncertainty recently, with top leaders forced to resign amid allegations of corruption.

The biggest head to roll so far? President Nguyen resigned last month. Perhaps it’s a good thing my friend isn’t actually his son!

— Simon

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