There was VND 78 trillion (US$3.17 billion) sitting in cash accounts with securities firms in Vietnam at the end of 2023, according to Tuoi Tre. The article notes that this is an increase of VND 20 trillion (US$812.8 million) over the end of 2023 and also that liquidity on the Ho Chi Minh City stock exchange has been low in recent months. This was also noted by Vietnam News back in December which went so far as to posit that low-liquidity was turning-off would-be investors.
But what’s of particular interest here is that this adds some much-needed context to an announcement late last year that from June 30 2024, trading firms would be prohibited from paying interest on funds in cash accounts. In this context, it looks like this step may have been taken to liberate this hefty sum of funds. That said, it’s not clear that those funds will necessarily return to the stock market and for foreign firms they may even be repatriated adding an additional investment barrier.
Learn more about trading stocks in Vietnam see: The Vietnam Stock Exchange: Quick Guide 2024