Vietnam stock market capitalization surpasses $230 bln
Vietnam's stock market capitalization was estimated at VND5,416 trillion ($230.4 billion) at the end of April, equivalent to 60.89% of the country’s 2022 GDP, according to the State Securities Commission (SSC).
Vietnam has three bourses: the Ho Chi Minh Stock Exchange (HoSE), the Hanoi Stock Exchange (HNX), and the unlisted public company market UPCoM. The stock market has become an important medium and long-term capital mobilization channel for the economy.
According to the market watchdog, enterprises mobilized VND731,349 billion ($31.14 billion) through the issuance of shares and corporate bonds in 2021, including nearly VND95,698 billion ($4.07 billion) in shares, VND29,766 billion in corporate bonds via public offerings, and VND605,934 billion in corporate bonds via private placements.
In 2022, the value of capital raised through share issuances and corporate bond public offerings was estimated at VND116,684 billion ($4.97 billion).
The market has 758 stocks and fund certificates listed on the two stock exchanges and 857 stocks registered on the UPCoM with a total value of VND1,992 trillion ($84.8 billion), equivalent to 20.9% of last year’s estimated GDP.
There are 449 listed bond codes with a value of over VND1,834 trillion ($78.1 billion), or 19.3% of the estimated 2022 GDP.
The increasing number of investors has contributed to boosting market liquidity. The number of investor accounts at the end of April 2023 was over 7 million, up over 1.5 times from the end of 2020 and exceeding the target of 5% of the population set for 2025. They include more than 7 million domestic investor accounts and 43,465 foreign ones, up 156% and 24% from the end of 2020, respectively.
In addition, securities trading organizations have continued to be restructured with enhanced management and supervision, and strict control of their operations. At the same time, state management over securities and the stock market has been increasingly improved, according to the commission.
Besides these positive results, Vietnam's stock market has still revealed some limitations, it noted.
Firstly, individual investors still make up the majority on the stock market, while institutional investors account for a small proportion, leading to unstable transactions. Many individual investors are not fully aware of legal conditions and show limited understanding, so they often buy and sell shares following hearsay.
Secondly, supervision and inspection activities still face many difficulties as legal violations in the market have become increasingly sophisticated and complex while supervision and inspection resources remain limited.
Thirdly, there is a lack of diversity in the stock market, with commodities mainly being listed or registered stocks, while there are only few derivative securities packages.
Fourthly, the market is now in a development stage, so it is still influenced by psychological factors. The impact of false rumors, concerns about cash flow, inflationary pressure, global political-economic uncertainties, and the downward trend of the global stock market, caused a sharp decrease in the domestic market from April 2022 until the first months of 2023.
Expectations from solutions
The SSC believes that the Vietnamese economy and its stock market will still face many difficulties and challenges in 2013.
In order to ensure the continuous, smooth, stable and transparent operation of the stock market; promote its sustainable, safe and transparent development; and protect the legitimate rights and interests of investors, the commission is reviewing provisions in the Securities Law and guiding documents in order to fix shortcomings.
It will supplement regulations to better manage investors and increase sanctions against violations, thus ensuring the healthy, transparent and sustainable development of the stock market.
Regarding market organization, the commission will speed up the inauguration of a new stock trading system developed by the Korea Exchange (KRX) in order to facilitate the launch of new products and services on the stock market and ensure its smooth, continuous, safe and effective operation.
The SSC is directing related parties to prepare a trading platform for privately placed corporate bonds, helping enhance transparency in the secondary market, while accelerating the restructuring of the stock market.
It will also strengthen supervision of securities companies to promptly prevent and detect violations in the market; continue closely monitoring developments in the domestic and international stock markets; coordinate with relevant agencies and organizations to promote the supervision of trading on the stock market, and give early warnings to investors regarding risks.
Examination and inspection activities will be strengthened and violations in the stock market will be strictly punished to enhance discipline for the transparent and sustainable development of the stock market.
The commission will provide complete, accurate and timely information to investors, limiting the influence of rumors and fake news on their sentiment.
It will also actively coordinate with international organizations to implement solutions to upgrade the Vietnamese stock market in order to attract more engagement of foreign investors.
- Read More
Former Government Office chairman receives $7,900 bribe from property project
Mai Tien Dung, former Minister-Government Office Chairman, received a bribe worth VND200 million ($7,900) from Nguyen Cao Tri, owner of the Dai Ninh eco-resort and urban area project in Lam Dong province.
Society - Sat, November 2, 2024 | 9:13 pm GMT+7
Thai food giant CP enters public-private partnership to promote food system transformation
Thai-invested C.P. Vietnam Livestock JSC and the Partnership for Sustainable Agriculture Vietnam (PSAV) signed a memorandum of understanding Friday on working together to advance sustainable agriculture in the country.
Companies - Sat, November 2, 2024 | 7:16 pm GMT+7
Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year
Vietnam’s central province of Quang Ngai will work with the investor to have construction of VSIP II Quang Ngai, a facility based on the Vietnam-Singapore Industrial Park (VSIP) model, begin in August 2025.
Industrial real estate - Sat, November 2, 2024 | 3:47 pm GMT+7
Vietnam likely to grow 6.5% in 2024-2025: VinaCapital
VinaCapital, among the biggest foreign-run asset managers in Vietnam, has forecast the country’s economy to achieve 6.5% growth in both 2024 and 2025, with the composition of the expansion to change to more domestically driven factors next year.
Economy - Sat, November 2, 2024 | 2:00 pm GMT+7
Major Vietnamese developer Novaland appoints new CEO
Duong Van Bac, who joined Novaland as chief financial officer in August 2023, has been appointed general director, starting Friday.
Companies - Sat, November 2, 2024 | 10:24 am GMT+7
Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3
Ho Chi Minh City-based Bamboo Capital Group recorded an after-tax profit of VND331.2 billion ($13.1 million) in the third quarter of 2024, an astounding 36-fold expansion year-on-year.
Southeast Asia - Sat, November 2, 2024 | 9:41 am GMT+7
ThaiBev to bag $54 mln from Sabeco’s upcoming dividend payout
Vietnam Beverage, wholly owned by Thai Beverage (ThaiBev) will rake in VND1,374 billion ($54.26 million) worth of dividend from Ho Chi Minh City-based top brewer Sabeco.
Companies - Sat, November 2, 2024 | 9:13 am GMT+7
Steel heavyweight Hoa Phat pours over $2 bln into central Vietnam complex
Leading Vietnamese steelmaker Hoa Phat had invested more than VND52.5 trillion ($2.08 billion) in its Dung Quat Iron and Steel Integrated Complex (Dung Quat 2) in the central province of Quang Ngai as of Q3/2024.
Industries - Sat, November 2, 2024 | 8:00 am GMT+7
Vietnam becomes Australia’s fastest-growing inbound market
The number of Vietnamese tourists to Australia has grown significantly after the Covid-19 pandemic, with nearly 178,000 reported in the 12 months to August 2024, according to a Friday press release by the Australian Minister for Trade and Tourism’s Office.
Southeast Asia - Fri, November 1, 2024 | 10:02 pm GMT+7
Study finds shift in Thai consumers’ spending patterns
Consumers in Thailand are shifting their spending focus to experiences and investments, according to the latest ASEAN Consumer Sentiment Study (ACSS) by United Overseas Bank (UOB).
Southeast Asia - Fri, November 1, 2024 | 10:00 pm GMT+7
Energy security, digitalization key to Indonesia's economic growth
The Indonesian government is prioritizing long-term economic growth through energy security, digitalization, and natural resource industrialization, according to Deputy Minister of Finance Thomas Djiwandono.
Southeast Asia - Fri, November 1, 2024 | 9:58 pm GMT+7
Vietnam PM's Middle East tour creates breakthroughs in economic, trade, investment cooperation: FM
Prime Minister Pham Minh Chinh’s freshly ended six-day trip to the UAE, Saudi Arabia and Qatar has produced important outcomes, demonstrating the growing relations between Vietnam and the three Middle-East countries, Deputy Prime Minister and Foreign Minister Bui Thanh Son told the Vietnam News Agency.
Politics - Fri, November 1, 2024 | 9:25 pm GMT+7
Vietnam, Qatar look to tap potential for energy, oil & gas collaboration
Vietnam and Qatar have recognized the significant potential for further collaboration in multiple sectors such as energy, oil and gas, especially LNG, agriculture, Halal industry, and banking.
Politics - Fri, November 1, 2024 | 9:02 pm GMT+7
Thailand bans export of raw palm oil until December
Thailand's Department of Internal Trade has temporarily banned the export of raw palm oil due to reduced production caused by drought and plant diseases.
Southeast Asia - Fri, November 1, 2024 | 8:31 pm GMT+7
Envision Energy to build $420 mln wind power plant in Vietnam from June 2025
Envision Energy Singapore Pte Ltd, under China-based Envision Energy, aims to kick off construction of the 300-MW Envision Nam Po wind power plant in Vietnam’s northern mountainous province of Dien Bien in June 2025.
Energy - Fri, November 1, 2024 | 8:30 pm GMT+7
Indonesia to ban plastic waste imports from 2025
The Indonesian government will start imposing a ban on the import of plastic waste from the beginning of next year, according to Minister of Environment Hanif Faisol Nurrofiq.
Southeast Asia - Fri, November 1, 2024 | 8:29 pm GMT+7
- Consulting
-
Remove roadblocks to lure foreign investment into Vietnam: HSBC exec
-
Rethinking resilience: How typhoon Yagi redefines supply chain strategies in northern Vietnam
-
In trade and investment, ASEAN and China are better together
-
AI can be a game changer for Vietnam tourism
-
Investment opportunities in LNG-to-power projects in Vietnam
-
Pepper prices 2024: will the dream of 'black gold' repeat?