VIETNAM STOCK MARKET JACK – MA1N0214
General Information • Trading venue: • Trading floor: take place transactions of buying and selling stocks • 2 trading venues: - Ho Chi Minh Stock Exchange (HOSE), established in 2000 - Ha Noi Stock Exchange (HNX), established in 2005 • Trading Time:2 sessions • Morning session: 9am to 11.30am • Afternoon session: 1pm to 3pm • Market Indices: • Vn-Index, Hnx-Index, Upcom-Index • Vn30-Index, Hnx30-Index
General Information (cont.) • As of 2012, 714 companies is listed in HOSE and HNX while only 183 listed-companies in both markets in 2006. • The HOSE and HNX trade only ordinary shares, bonds and fund certificates. No complex securities that are traded on these exchanges such as futures, derivatives and so on. • Par value per share: • 10.000 VND (0.47 USD) • Important rules: • T+3 • Restriction on short-selling • 5% limit
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.
Vietnam stock market statistics • From 2000 to 2004, Vietnam Stock Market was in its infancy. Therefore, the market capitalization was only 154 mil USD in 2003 with 24 listed companies. • In the next period, more and more companies were listed and also people invested more in the stock exchange. As a result, the market capitalization reached 19,541 mil USD and VN-Index (HOSE) was traded in 900-1100 range in 2007. • However, the economic recession in 2008 brought the market capitalization of Vietnam to 9,589 mil USD. • Nowadays, Vietnam stock market capitalization reached 32, 933 mil USD with 714 listed companies
Historical Movement of The VN-INDEX Accumulation period Distribution period Public Participation Period Recovery/ New Cycle
Strengths and Weaknesses • Strengths: • Growing very fast because this market is new. • Emerging market • Government tried to take actions to keep a stable economy and stable stock market as well. • Weaknesses: • Lack of rules and regulations • Weak infrastructure (auditing services) • Some investors are lack of investment knowledge