Vietnam Stock Market MA2N0211 Nguyen Hu

Topics: Stock market, Stock, Ho Chi Minh Pages: 13 (509 words) Published: December 25, 2014
VIETNAM
STOCK MARKET
(EVALUATION RIGHTS
– OVERVIEW)
NGUYEN HUYEN TRANG
MA2N0211

FRAMEWORK
Introduction

and general

overview
 Listing rules
Difference and weakness
Conclusion

DEVELOPMENT PERIODS
7/1988, Vietnamese government issued
resolution No 48/CP of establishing stock
market.
 7/2000, Vietnam stock market started
operating with the born of HOSTC (Ho Chi Minh
City Securities Trading Center) and upgraded to
HOSE ( Ho Chi Minh City Stock Exchange) in
2007
 2005, HASTC (Ha Noi Securities Trading Center)
operated officially and changed to HNX( Ha Noi
Stock Exchange) in June 2009
 2006 – 2007, the explosion of Vietnam Stock
Market


VIETNAM STOCK MARKET
STRUCTURE


In Vietnam, the State Securities Commission ("SSC") is
the State Body which manages and controls all
operations of the Vietnamese capital markets.
Vietnam
Stock
Market

Secondary
Market

Primary
Market
HOSE
Stock
exchange

OTC
Trading
Market

HNX

UPCoM

GENERAL OVERVIEW
Year

Mcap (billion
VND

Accounts

%GDP

Listed Co.

2001

1,570

8,780

0.34

10

2002

2,436

13,607

0.48

20

2003

2,370

16,484

0.39

22

2004

4,516

21,600

0.63

26

2005

9,598

29,065

1.21

41

2006

237,276

110,652

22.7

195

2007

492,900

312,139

40

253

2008

225,935

531,428

19.76

342

2009

920,551

822,914

37.71

457

2010

695,186

925,955

42.25

557

2011

616,226

1,188,000

33.6

705

Index point

Stock market in
October , 2014

Viet Nam

600.84

US

17390.52

UK

6363.46

Euro Area

3113.31

Japan

15329.91

LISTING RULES
HOSE:
The applicant company must have a minimum book value of 120
billion VND (approximately 5.7 million USD) in paid-up charter capital.
The applicant company must have been profitable for the last two consecutive years and there must not be any accumulated losses up to the year of listing.
 HNX:
The applicant company must have a minimum book value of 30
billion VND (approximately 1.4 million USD) in paid-up charter capital.
The applicant company must have been profitable for the year proceeding the listing application.


LISTING RULES
The HOSE and HNX trade only ordinary shares, bonds
and fund certificates.
 Par value per share:

10.000 VND (0.47 USD)
 Prior to LO order in matching progress


ATO
Time

At opening

Order matching 8h30 – 9h
period


ATC
At closing
10 – 10h30

Settlement : T+3 if continue matching, T+1,
T+2, T+3 if put through

DIFFERENCES


The difference between Vietnam and international
market is most of listed companies are SOEs which
has IPO capitalization rates are high, but the rate
freely transferable shares (free float) are very small,
accounting for 10-30%. Meanwhile, the majority of
70-80% is held by State capital corporations, or
managing agency of that sector. This has limited to
the depth of the market and its impact on liquidity.

LACK AND WEAKNESS
 Lack

of professional labors : the stock
staffs still lack of management skills and
experiences, security training systems
don’t still satisfy the market demand and
only 1/3 graduate students satisfy the
requirement, the rest needs to be retrain

 Most

of investors still lack knowledge and
experience, plus lack of information,
usually invest according to feeling and
crowd

LACK AND WEAKNESS
Many listing companies publishing
information isn’t timely, even still existing
the phenomenon of masked information
 Difficult for investors in making investment
decisions
 Bad influences to the investor’ belief in the
management of the state and future of the
stock market
 High/ unstable inflation rate and weak
economic reduced the attractiveness of
Vietnam stock market to foreign investors


CONCLUSION
Compared with many large and long –
standing stock markets,...
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