A different perspective on Vietnam’s economy and doing business in Vietnam. Make sure to  subscribe.

how to guides

cheat sheets

snapshots

Vietnam’s Stock Market, November 2023: Snapshot

Vietnam’s stock market started off November on an uncomfortable footing. Allegations of stock market manipulation had led to the authorities announcing a crackdown on the practice though details of exactly how this ‘crackdown’ would play out on a practical level were scant. That said, it was not unexpected. The head of FLC, the man at the centre of these allegations, had been arrested at the end of last year and a flurry of similar cases of nefarious stock market trading have been revealed over the last twelve months.

On that note, adding to the flurry in November, a Danang man was fined for using 76 accounts belonging to 21 investors to manipulate the price of a real estate firm listed on the Ho Chi Minh Stock Exchange (HoSE). He was subsequently banned from trading for two years and fined US$61,000.

This provides some interesting context for news that more trading accounts had been closed in October than new accounts had been opened. The bulk of the closed accounts, 543,753 out of 545,000, had been the result of MB Securities closing out accounts that had never been used. Harmless housekeeping sure, but it also brings into question the status of the other seven million or so trading accounts registered with the Vietnam Securities Depository and Clearing Corporation.

But stock market manipulation wasn’t the only challenge the local bourse was facing. One of Vietnam’s biggest food processing firms, Kido, was also fined in November for breaching a number of listing rules and regulations. These included disclosing information late, failing to report on how the funds raised through corporate bonds had been spent, and a lack of clarity around the remuneration packages of board members. All up the firm was fined US$9,660.

It wasn’t just local disclosure breaches that were causing problems for stocks in Vietnam either. On November 17, local press reported that a drop in the VN-Index had been caused by news that a possible lawsuit was in the works in the US against Vietnam’s homegrown electric car maker VinFast for delayed disclosures. As part of the country’s biggest conglomerate, VinGroup, the potential for a lawsuit against the auto-manufacturer, VN Express suggested, had spooked investors in the company’s ecosystem broadly. 

Finally, it was also reported in November that Vietnam had just eight IPOs last year compared to 42 in Thailand and 59 in Indonesia. State media suggested this was because there was a lack of diversity in the stock market which was a turn-off for foreign traders, which in turn meant that it was difficult for local companies to raise capital through IPOs making IPOs a less attractive option for raising capital–a cycle that may be difficult to break.

Although, it’s also worth noting that Thailand and Indonesia are both considered ‘emerging’ markets whereas Vietnam is still considered a ‘frontier’ market by key index analysts FTSE Ruseel and MSCI (See: The Vietnam Stock Exchange: Quick Guide 2023: Market Status). This may, in fact, be the bigger problem, or to look at it another way, resolving this problem may be the solution the local market is looking for.

All of that said, the HoSE finished the month on a high with the VN-Index up nearly 60 points on November 30 compared to November 1. This was, however, after a somewhat choppy month. It’s also worth noting that foreign traders continued to pull funds from the market to the tune of US$158.5 million  (data below).

🡇 Get snapshots sent straight to your inbox 🡇

VN-Index, historic data, November 2023

DateCloseOpenHighLowChange
1-Nov1,039.661,0281,0401,0201.12%
2-Nov1,075.471,0401,0751,0403.44%
3-Nov1,076.781,0751,0821,0710.12%
6-Nov1,089.661,0771,0901,0771.20%
7-Nov1,080.291,0901,0901,079-0.86%
8-Nov1,113.431,0801,1131,0763.07%
9-Nov1,113.891,1131,1251,1120.04%
10-Nov1,101.681,1141,1161,101-1.10%
13-Nov1,100.071,1041,1081,093-0.15%
14-Nov1,109.731,1001,1161,1000.88%
15-Nov1,122.501,1101,1331,1101.15%
16-Nov1,125.531,1231,1261,1150.27%
17-Nov1,101.191,1261,1301,096-2.16%
20-Nov1,103.661,1011,1111,0850.22%
21-Nov1,110.461,1041,1131,1040.62%
22-Nov1,113.821,1101,1151,1030.30%
23-Nov1,088.491,1141,1191,088-2.27%
24-Nov1,095.611,0881,0961,0730.65%
27-Nov1,088.061,0961,0971,086-0.69%
28-Nov1,095.431,0881,0951,0760.68%
29-Nov1,102.801,0951,1051,0950.67%
30-Nov1,094.131,1021,1071,094-0.79%

Foreign investor trades on HoSE, November 2023

BuySellChange
DateVNDUS$VNDUS$VNDUS$
1-Nov1,77973,240,0071,88877,727,450-109-4,487,443
2-Nov1,33554,960,8821,48060,930,416-145-5,969,534
3-Nov1,78173,322,3451,51462,330,16926710,992,176
6-Nov1,47360,642,2321,12046,109,50435314,532,728
7-Nov97440,098,8011,23951,008,639-265-10,909,838
8-Nov1,43559,077,8021,70170,028,809-266-10,951,007
9-Nov1,54863,729,9222,35496,912,297-806-33,182,375
10-Nov1,55864,141,6141,79173,734,037-233-9,592,424
13-Nov1,11045,697,8121,48861,259,770-378-15,561,958
14-Nov1,02542,198,4301,35955,948,943-334-13,750,513
15-Nov1,69469,740,6251,44959,654,17124510,086,454
16-Nov1,03042,404,2761,16047,756,272-130-5,351,996
17-Nov85635,240,8351,60566,076,566-749-30,835,731
20-Nov1,34855,496,08288336,352,40446519,143,678
21-Nov83334,293,9441,41558,254,418-582-23,960,474
22-Nov83834,499,7901,58465,212,013-746-30,712,223
23-Nov92838,205,0181,37456,566,481-446-18,361,463
24-Nov1,28352,820,08488436,393,57339916,426,511
27-Nov63526,142,44259524,495,674401,646,768
28-Nov89736,928,77284834,911,482492,017,291
29-Nov97440,098,8011,07444,215,721-100-4,116,920
30-Nov1,18448,744,3331,56764,512,136-383-15,767,804
Total26,5181,091,724,84630,3721,250,390,942-3,854-158,666,097

 

share

get connected with an expert
contribute a guest post
send a letter to the editor
submit a press release

latest news

Hanoi university signs agreement with Australian mining firms

With reserves estimated to be the second biggest in the world after China, and rare earth minerals becoming increasingly necessary in a slew of electronics, miners from all over have been actively courting partnerships with Vietnamese mining firms. Needless to say, partnerships with local universities is one way for these firms to open doors…

Read More »

State Bank of Vietnam denies change of exchange rate policy

With Forex reserves being spent hand over fist trying to keep the dong from devaluing, there has been speculation that greater intervention may be needed, specifically an interest rate hike. On Thursday Bloomberg reported that Malayan Banking Berhad was expecting an interest rate hike possibly as early as this week…

Read More »

Korean credit card firms struggle to crack Vietnam market

Indeed, demand for credit has plummeted over the last year or two as thrifty Vietnamese have tightened their belts. By the end of March credit growth was at just 1.34 percent. That said, credit cards have not proven to be very popular in Vietnam in general, with consumers tending to spend only…

Read More »

UK Pork approved for export to Vietnam

Of note, back in March it was reported that the a submission had been made by Vietnamese meat producers to the Government of Vietnam requesting additional technical barriers on imported meats. This was necessary, they argued, to level the playing field with other meat producing countries.

Read More »

Vietnam News Roundup: May 17 to May 23

This week’s Vietnam news roundup covers the latest news on Vietnam’s foreign reserves, updates on VinFast’s mounting troubles in the US, conflicting claims over electricity conservation, the USDA trade mission to Vientam, bad debts, open market operations, and more.

Read More »

Unpaid taxes blamed on late payment from Electricity Vietnam

EVN was selling electricity at a loss for most of last year and 2022 and the start of this year too. This saw the state-owned enterprise accumulate losses of over US$1.5 billion. It has never been made clear how these losses have been covered but, in light of these claims, it could very well be that power producers may be footing the bill.

Read More »
Contents

advertising enquiry

submit a press release

Note that it will be marked as a press release/sponsored post.

guest post

We publish guest posts of 800 to 1000 words from experts who have something unique to say on topics relevant to our audience. 

get connected with an expert

letters to the editor

We review letters for quality and authority and generally only publish views that add to the discussion from experts in their field.