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Vietnam Securities Industry: Overview 2024

The Vietnam securities industry is the financial market system in Vietnam that facilitates the trading of securities such as stocks, bonds, and derivatives. It is regulated by the State Securities Commission (SSC), a government body responsible for overseeing market activities, ensuring transparency, and protecting investor interests. 

Of note, the industry includes two major stock exchanges: the Ho Chi Minh Stock Exchange (HOSE) for large-cap stocks and the Hanoi Stock Exchange (HNX) for smaller-cap stocks and bonds. The overarching body managing these two key exchanges, alongside Vietnam’s Unlisted Public Companies market, is the Vietnam Stock Exchange.

Securities companies, such as brokers and investment firms, play a crucial role by enabling investors to buy and sell financial instruments. The industry also involves asset management firms, investment funds, and custodians.

Vietnam’s securities market has seen rapid growth in recent years, with increasing retail and foreign investor participation. It is a vital component of the country’s financial system, supporting capital formation, corporate growth, and economic development by providing a platform for companies to raise funds and for investors to gain returns on investments.

Vietnam’s securities industry in numbers

The total capitalization of ordinary shares in Vietnam fell to VND 6,915 trillion or US$272.8 billion in October down from VND 7,019.70 trillion or US$280.79 billion in September. The total market value is now equivalent to around 67.7percent of Vietnam’s 2023 GDP, as of October 25, 2024. Vietnam’s stock exchanges now host 725 stocks and fund certificates, with an additional 885 stocks registered for trading on the Unlisted Public Companies platform or UPCom.

That said, overall, trading activity was slightly heightened in October, with an average trading value of VND 18.042 trillion per session in October, a 7.1 percent increase from the previous month. The year-to-date average trading value has now risen by 25.9 percent to VND 22.13 trillion compared to 2023’s figures.

Revenue of key listed securities firms, US$millions, quarterly

Q4 2023Q1 2024Q2 2024Q3 2024
Total436.01417.93484.10444.47
VPS Securities62.6161.8667.2764.78
Saigon Securities80.6477.7290.8879.90
Techcom Securities60.6166.7287.9972.67
VNDirect Securities Corporation76.1354.5557.4450.01
Ho Chi Minh City Securities Corporation33.9434.0043.0944.82
Vietcap Securities31.7431.7636.0838.38
MB Securities21.2726.5434.8031.73
Mirae Asset Securities (Vietnam)24.7425.2624.9324.71
Vietcombank Securities Company14.1015.7615.8914.21
KIS Vietnam Securities Corporation30.2423.7625.7323.26

Trading revenue of key listed securities firms, US$millions, yearly

2020202120222023
Total8521,7881,6731,529
VPS Securities151375333251
Saigon Securities172293250282
Techcom Securities128205206207
VNDirect Securities Corporation84238269258
Ho Chi Minh City Securities Corporation89176154114
Vietcap Securities6814612497
MB Securities44877772
Mirae Asset Securities (Vietnam)549710498
Vietcombank Securities Company27534053
KIS Vietnam Securities Corporation3511911795

Securities trading accounts in Vietnam

Vietnam’s securities market has seen steady growth in the number of trading accounts this year, primarily fueled by individual domestic investors. Data shows that the total number of securities accounts in the country rose from 7.42 million in January to almost 9.1 million in November.

An important caveat in this data, however, is that Vietnamese investors are allowed to open multiple accounts with various securities firms, meaning the actual number of unique, active accounts is likely much lower.

Securities trading accounts in Vietnam, foreign and domestic, 2024

Domestic investorsForeign investorsTotal
IndividualOrg.IndividualOrg.
November9,091,91217,59942,9764,6229,157,109
October8,956,72417,49242,8284,6089,021,652
September8,800,15617,37142,6264,5808,864,733
August8,641,94417,28142,4464,5588,706,229
July8,311,12517,15042,1844,5658,375,024
June7,981,28917,00441,9804,5528,044,825
May7,874,87216,84141,8124,5357,938,060
April7,743,03316,67041,5954,5427,805,840
March7,632,41116,53141,3434,5527,694,837
February7,468,88716,43441,1314,5467,530,998
January7,355,79016,35641,0144,5577,417,717

Source: Vietnam Securities Depository and Clearing Corporation

Foreign direct investment in finance in Vietnam

In November 2024, Vietnam’s financial, banking, and insurance activities sector registered no new projects and US$658,000 in newly registered capital, according to Vietnam’s Ministry of Planning and Investment. This represents a significant decline compared to October, which recorded 1 new project and US$8.9 million in newly registered capital, marking a 92.63 percent decrease.

Year-to-date (YTD), the sector has attracted a total of 6 new projects with US$122.1 million in newly registered capital.

Foreign trader activity

Vietnam’s financial markets have witnessed a steady outflow of foreign funds throughout the year, according to recent data on foreign trader activity. The report reveals that from January to November, foreign investors’ sell volumes have consistently outpaced their buy volumes, resulting in a net capital outflow from the market.

Foreign trader activity, HoSE, 2024, VND/US$ billions

BuySellChange
DateVNDUS$VNDUS$VNDUS$
January28,3351.1228,1571.111780.01
February28,8421.1431,6081.25-2,766-0.11
March50,9032.0162,1832.45-11,280-0.44
April44,5861.7650,6932-6,107-0.24
May35,5041.451,1102.01-15,606-0.61
June37,3181.4753,9152.12-16,597-0.65
July42,8481.6951,2272.02-8,379-0.33
August38,9301.5342,5421.68-3,612-0.14
September35,0201.3837,1291.46-2,109-0.08
October36,1941.4346,0311.81-9,837-0.39
November29,6701.1741,6731.64-12,003-0.47
Total408,15016.10496,26819.55-88,118-3.45

Source: Ho Chi Minh City Stock Exchange

Foreign investment in securities firms

The ownership limit of foreign investors in securities trading firms in Vietnam depends on whether the investor is an organisation or an individual. An individual and their immediate family can own no more than a collective 49 percent of a securities firm, whereas an organisation can own 100 percent of a trading firm if it meets the following criteria:

  • It has been operating in the field of banking, securities, and/or insurance for at least two years;
  • The licensing authority in the organisation’s home country and the State Securities Commision in Vietnam have a mutual or multilateral agreement on information exchanges, management, inspection, and supervision of their respective securities markets and activity carried out on those markets;
  • The organisation has recorded a profit for the last two years; and 
  • The organisation’s latest annual financial statement has been audited and has received unqualified opinions.

Organisations that do not meet these criteria can still invest in securities trading firms but, like individual investors, cannot own more than 49 percent.

This is outlined in Article 77 of the Law on Securities.

Vietnam securities industry management

The structure of Vietnam’s securities industry is relatively straightforward with several key organisations.

Regulatory Body

The State Securities Commission (SSC) is the main regulatory authority overseeing Vietnam’s securities industry. It sets the rules and regulations for market participants, ensuring compliance and market stability.

Stock Exchanges

The Ho Chi Minh Stock Exchange (HoSE) is the largest stock exchange in Vietnam, managing the majority of trading in large-cap companies. It plays a central role in the country’s equities and derivatives markets. The Hanoi Stock Exchange (HNX) is the second major exchange, focusing on smaller-cap stocks, bonds, and government securities. It also facilitates trading in corporate bonds and derivatives.

Box 1: Getting started trading on Vietnam’s stock exchanges

As of August 31, 2024 there were 42,446 registered trading accounts belonging to individual foreign investors and a further 4,558 account belonging to foreign institutions. That said, opening a trading account to buy and sell shares in Vietnam has a number of steps and can be somewhat tedious. 

See: How to Open a Trading Account in Vietnam: Technical Guide 2024 

Brokerage firms in Vietnam’s Securities industry

Brokerage firms in Vietnam’s securities industry are financial intermediaries that facilitate the buying and selling of securities, such as stocks, bonds, and derivatives, on behalf of investors. These firms play a crucial role by providing access to the stock exchanges, such as the Ho Chi Minh Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX), enabling both retail and institutional investors to trade.

Viet Capital Securities (VCSC)

VCSC is one of the leading brokerage firms in Vietnam, providing services such as stock trading, investment banking, and research. It is known for its strong institutional client base and expertise in mergers and acquisitions.

Saigon Securities Inc. (SSI)

SSI is among the largest and most established brokerage firms in Vietnam. It offers a wide range of services including asset management, securities brokerage, and financial advisory services for both domestic and foreign investors.

VNDirect Securities

VNDirect has a strong presence in retail trading, providing financial products such as stocks, bonds, and investment funds. It is known for its user-friendly trading platforms and investment consulting services.

Mirae Asset Vietnam

A subsidiary of South Korea’s Mirae Asset Financial Group, this firm offers comprehensive brokerage services, investment advisory, and wealth management. It is well-regarded for catering to both institutional and retail investors in Vietnam.

HSC (Ho Chi Minh City Securities Corporation)

HSC is one of the top brokerage firms with a solid reputation for providing investment research, brokerage, and capital market advisory services. It serves a diverse clientele, including individuals, corporations, and institutional investors.

These firms play a pivotal role in facilitating the growth and development of Vietnam’s securities industry, providing essential services for both retail and institutional investors.

Vietnam securities firms by market share, third quarter 2024

CompanyCodeQ3Q2Change
VPS SecuritiesVPS17.63%18.16%-0.53%
Saigon SecuritiesSSI8.84%9.31%-0.47%
Techcom SecuritiesTCB7.09%7.45%-0.36%
VNDirect Securities CorporationVND5.70%6.46%-0.76%
Ho Chi Minh City Securities CorporationHSC6.65%6.41%0.24%
Vietcap SecuritiesVCI6.78%5.32%1.46%
MB SecuritiesMBS4.69%4.76%-0.07%
Mirae Asset Securities (Vietnam)MAS4.50%4.40%0.10%
FPT Securities Joint Stock CompanyFPTS2.97%
KIS Vietnam Securities CorporationKIS2.96%2.87%0.09%
Total67.81%65.14%2.67%

Investor behaviour in Vietnam’s securities industry

Investor behaviour in Vietnam’s securities industry reflects the dynamic and evolving nature of the market, shaped by economic conditions, technological advancements, and cultural factors. Key aspects of investor behaviour include:

Rising retail investor participation

In recent years, there has been a surge in retail investors entering the stock market, driven by the rise of mobile trading apps and easier access to information. Many young and tech-savvy individuals are now exploring stock investments as a way to build wealth.

Preference for digital platforms

Vietnamese investors increasingly prefer online platforms for trading, using apps and websites to manage portfolios and execute trades. This shift to digital is largely due to convenience, real-time access to market data, and lower transaction costs.

Box 2: Tracking the performance of Vietnam’s stock exchanges

The Vietnam stock market index most commonly used is the VN-Index. This is made up of a basket of stocks listed on the Ho Chi Minh City Stock Exchange–or HoSE for short–and is published and analysed in most major news publications in Vietnam daily. It can be tracked via the Vietnam Stock Market Tracker too.

That said, there are several other indexes, both domestic and foreign, that track different aspects of Vietnam’s key stock exchanges. These include the VN-Index, the VN30, the HNX, the HNX30, the MSCI Vietnam Small Cap Index, MSCI Vietnam Index (USD), FTSE Vietnam All-Share Index, and the FTSE Vietnam Index among several others.

See: Vietnam Stock Market Indexes: Ultimate Guide 2024 

Focus on short-term gains

Many retail investors in Vietnam tend to prioritise short-term profits over long-term investments. They often engage in speculative trading, especially in volatile sectors, to capitalise on market fluctuations.

Influence of social media and online communities

Social media platforms and online investment communities have become important sources of information for Vietnamese investors. Many rely on forums, Facebook groups, and influencers to gather insights, share experiences, and make investment decisions.

Growing interest in new financial products

Vietnamese consumers are becoming more open to new investment products such as ETFs (Exchange-Traded Funds), bonds, and derivatives. As the market matures, more investors are diversifying their portfolios beyond traditional stocks.

Cautious foreign investment

While many Vietnamese investors are aware of foreign market opportunities, they remain cautious due to the perceived risks and complexities involved. However, interest in global markets is gradually increasing as financial literacy improves.

Risk awareness and caution

Despite the growing enthusiasm for stock market participation, many Vietnamese investors remain cautious, especially following market downturns or economic instability. This has led to a preference for blue-chip stocks and safe investment options among more conservative investors.

Box 3: Vietnam misses latest FTSE Russel stock market upgrade deadline

In recent years, Vietnam has been courting an upgrade for its stock market from frontier to emerging. In March of 2024, however, FTSE Russel released its latest country classification upgrade update with Vietnam holding its position on the firm’s watch list. The assessment is more or less the same as its September 2023 with no changes made that have significantly impacted the key criteria holding Vietnam back.

See: Vietnam’s Stock Market Upgrade Opportunity: Unpacked

What’s next?

The Vietnam Securities Industry is a rapidly growing sector that encompasses a wide range of entities and activities involved in the trading and exchange of securities. The industry has been supported by government policies, attracted foreign investment, and experienced significant growth. However, it also faces challenges such as market volatility and regulatory complexities. 

Overall, the Vietnam Securities Industry presents both opportunities and challenges for investors and businesses alike. That said, Vietnam’s economy and business environment is very dynamic and can change quickly. With this in mind, foreign investors looking to keep track of changes in Vietnam’s securities industry should make sure to subscribe to the-shiv.

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