Vietnam's stock market is forecast to witness a boom in share supply this year as several companies opt for initial public offerings (IPOs).

The Vietnam National Textile and Garment Group (Vinatex) is finally expecting to launch an IPO in the first quarter of this year, after failing to do so several times in the past, according to the Dau Tu Chung Khoan (Securities Investment) newspaper.

Vietnam's garment and apparel industry is becoming more appealing to investors because it will be among those that benefit from the Trans-Pacific Partnership (TPP) when it concludes and comes into effect.

Vietnam Motors Industry Corporation (Vinamotor) has also been urged to equitise in 2014, and, therefore, it is also likely to launch an IPO.

National flag carrier Vietnam Airlines and the Bank for Investment and Development of Vietnam (BIDV) are also preparing their respective IPOs.

A representative from the Corporate Finance Department said the restructuring of State-owned enterprises, including the equitisation efforts, would lead to an increase in the supply of high-quality shares in the market.

According to economic expert Vu Dinh Anh, the supply of shares in the market will be plentiful this year, in part due to Decree 108/2013/ND-CP which came into effect on November 11, 2013.

The decree stipulates that joint stock companies must be listed on the stock exchange within one year after they start selling shares to the public.

Vice Director of the Ho Chi Minh City Stock Exchange (HOSE) Tran Thi Anh Dao told Dau Tu Chung Khoan that the exchange estimates the total volume of listed shares to rise significantly in 2014 from the previous year.

According to the Hanoi Exchange, the equity market is expected to thrive this year, which should attract more companies to list on the stock exchange. The exchange said up to 15 companies could list their shares this year if the equity market showed positive developments.-VNA