Vietnam Private Placement Market: Q4 2024 Update

Private placement activity in Vietnam during Q4 2024 reflected continued interest from both domestic and international investors, though transaction velocity and pricing remained influenced by broader macroeconomic conditions and sector-specific dynamics.

Transaction Volume

Q4 2024 saw moderate transaction volumes across equity, equity-linked, and structured equity placements. Deal flow was concentrated in sectors with established investor familiarity: consumer, technology-enabled services, and industrial manufacturing.

Growth capital transactions remained the dominant use of proceeds, with companies seeking capital for expansion, market consolidation, or working capital optimization. Pre-IPO financing and shareholder liquidity transactions occurred but represented a smaller proportion of overall activity.

Valuation and Pricing

Valuation expectations continued to reflect the gap between founder/shareholder expectations and investor required returns. Companies with demonstrated revenue growth, path to profitability, and strong governance commanded premium valuations. Early-stage and pre-revenue companies faced more challenging pricing discussions.

Structure played an increasingly important role in bridging valuation gaps. Equity-linked instruments, performance-based ratchets, and staged capital deployment allowed parties to reach agreement where fixed-price equity proved difficult.

Investor Landscape

Family offices and high-net-worth investors maintained active participation, particularly in mid-market transactions. Strategic investors showed selective appetite for businesses aligned with their core operations. Private equity and growth equity funds remained disciplined on valuation and governance requirements.

International investors continued to navigate Vietnam market entry through local partnerships, co-investment structures, or placement agents with established relationships. Direct market engagement by offshore investors remained limited by regulatory considerations and local execution requirements.

Outlook

MSquare expects private placement activity in 2025 to reflect macroeconomic conditions, sector rotation, and investor appetite for Vietnam exposure. Companies with strong fundamentals, clear growth strategies, and institutional-grade materials will continue to access capital. Execution timelines and pricing will remain sensitive to market conditions and transaction-specific factors.