KRX new trading system operation to have moderate impact on Vietnam stock market: expert

The official operation of the new stock trading system KRX on May 5 will have a moderate impact on the Vietnamese stock market, said Nguyen Viet Duc, digital business director at VPBank Securities JSC (VPBankS).

The Ho Chi Minh Stock Exchange (HoSE) on Thursday issued an announcement on the official operation of the KRX system. It said under the consensus and approval of the Vietnam Stock Exchange and the State Securities Commission, the new trading system KRX will officially come online from May 5, 2025.

In its announcement, the bourse calls for the proactive and coordinated engagement of all market participants, listed companies, investors, and news agencies to facilitate a safe, transparent, and effective operation of the new trading system.

“The HoSE respectfully urges all market participants to dedicate adequate resources to the implementation of the new trading system in alignment with the plan; enhance supervision and disseminate information regarding the system’s new functionalities to investors, thereby ensuring the safety, continuity, and stability of market operations,” it noted.

The new platform is expected to enhance the trading and settlement capabilities of the market, introducing advanced features such as same-day trading (T+0), short selling, reduced settlement time, options contract, and the availability of a central counterparty clearing (CCP) system.

Therefore, investors are hopeful that the launch of the KRX system will have a positive impact on the stock market and benefit securities firms. However, Nguyen Viet Duc, digital business director at VPBank Securities JSC (VPBankS), said he believes the impact of KRX will be moderate, as macroeconomic factors remain the primary drivers.

If the U.S. administration continues to implement aggressive trade policies that affect corporate earnings, market liquidity will remain difficult to improve, he noted.

“The KRX system is certainly a positive development, but its true impact should be felt over the next one to two years. As for this year, it is unlikely to significantly affect market liquidity,” he concluded.

The KRX system is a comprehensive information technology platform designed to manage and oversee trading on Vietnam’s securities market. The HoSE is the primary developer, with the Korea Exchange (KRX) as the project’s partner.

The project, approved in 2012, aims to modernize Vietnam’s stock trading and settlement infrastructure. In addition to the HoSE, the Hanoi Stock Exchange (HNX) and the Vietnam Securities Depository and Clearing Corporation (VSDC) are also key beneficiaries of the KRX system.

The VN-Index, representing the HoSE, rose 12.35 points, or 1.02%, to 1,223.35 on Thursday, the highest since April 15.

The trading value on the major bourse decreased by 7% to VND17.66 trillion ($679 million) on the day.