Personal securities accounts equate to 7% of Vietnam's population

The number of Vietnamese individuals' securities accounts had exceeded 7.1 million by the end of May, equivalent to over 7% of the population.

Vietnamese investors opened 104,745 new securities accounts in May, up four times compared to the previous month and a record high since August 2022.

Of this, individuals opened 104,624 new accounts, while the figure for institutions was 121, Vietnam Securities Depository (VSD) data shows.

In May, foreign investors opened 221 new accounts, up from 186 the previous month. Of this, individuals opened 208 accounts and institutions 13. By the end of May, foreign investors had a total of 43,686 accounts.

These new accounts have helped market liquidity improve significantly. At the end of May, the VN-Index reached 1,075 points, up 2.5% compared to the beginning of the month. The average trading value on the three exchanges in May reached about VND14 trillion ($596 million) per session, up 5% compared to the previous month.

According to leading broker VNDirect, cash flow from domestic investors has begun to return to the stock market as confidence improves thanks to a series of support policies issued by the government recently as well as cooling interest rates that have helped reduce capital costs for securities investments.

The broker expects these positive signs to continue and the VN-Index could break through the strong resistance area of 1,080-1,100 points to move higher in June.

Investors should take advantage of correction sessions to increase their portfolios, and prioritize stocks with growth stories or those that benefit from interest rate reduction trends like securities, banking, public investment, and energy infrastructure, it added.