Stock market will develop but not make rapid leaps: expert

Mr Nghia started the interview with the press by saying that the stock market will see further increases. The P/E (price on equity) index is now 38, quite high if compared to the normal level (12-17 times higher). However, the stock market will still see further increases since Vietnam is an emerging market, while the international capital flow is moving towards Asia. A watchdog specializing in supervising the financial market will be set up in the near future, which will not directly interfere in the market, but will only support the market development. Vietnam’s stock market has not been so hot that it needs to be restrained. Do you mean that Vietnam will have a watchdog to supervise financial activities? The Government plans to set up a committee in charge of supervising the financial market operation (securities, banking and insurance). The committee will take remote supervision over the management agencies like the Ministry of Finance and the State Bank of Vietnam (SBV). SBV is also considering setting up a supervision and inspection agency, which will be the result of the reunification of the departments with the same functions. Is it true that the establishment of the financial supervision committee aims to receive the new capital flows and assist the development of the stock market? The international capital is now flowing into Asia. In Asia, China and Vietnam prove to be the two most attractive destinations. Vietnam’s stock market will develop quickly for two reasons. First, Vietnam plans to equitze 70 groups and big generations. If one third of the 70 units list on the bourse, it would be enough to make the total supplies in the market increase sharply. I think this will happen from July towards the years end. The profuse supplies will make the market less hot. Second, there will be several hundreds of foreign investors coming to Vietnam. Many famous financial consultancy groups and banks will be present on the market. Their clients are big investors, who will ask them to do research about Vietnam. There will be a big capital flow into Vietnam’s securities. The stock market will develop strongly, and it will need to be supervised in order to avoid sudden changes, that can cause shocks. You seem to be very optimistic. But why does SBV plan to control the commercial banks that make investment in securities if you believe that the stock market will develop? The Government has been aware of the need to keep the stock market in stable operation. Any troubles in the stock market will directly influence the monetary market. It is the SBV’s task to guarantee the capital raised from the public. Commercial banks have been advised to think carefully before making decisions on funding securities trading deals. For example, when the P/E is three times higher than the normal level, banks should give the loans valued at 1/3 of the securities’ market values. If banks keeps cautious with the loans mortgaged by securities, it would be safer for investors, the stock market and banks as well. Do you mean that SBV will not ask banks to tighten the funding of securities trading deals? No, not to tighten the loaning to securities traders, but to protect them, give advice in order to avoid risks. Foreign investors always are methodical when making investments, even if they just make short term investment. Meanwhile, domestic investors buy or sell securities just by feelings or follow the moves of someone else. It is very risky. Will the Government consider raising the maximum foreign ownership ratio in local banks from the current 30% limit? From April 2007, foreign bankers will have the right to set up 100% foreign owned bank entities in Vietnam. However, I think that many foreign banks will be set up in the first years after Vietnam joins the WTO as they still expect that the 30% foreign ownership ratio will be raised. You may see that the current laws allow local banks to get M&A (merge and acquisition), but aim to prevent foreign banks from swallowing domestic banks.

Source: Thời báo Kinh tế Sài Gòn

Vietnam stocks hit new high

Vietnam’s stock market index soared 3.51 percent to close at a new lifetime high on Friday as blue chips made all-around gains.
The VN-Index rose 28.57 points to 817.39, beating the record of 809 set on December 20, with 67 gainers and 20 losers.

Trading volume jumped by 2 million shares to 7.9 million shares. Total value rose to VND898 billion (US$55.5 million) from VND668 billion.

Hanoi-based infrastructure developer SJS became the first stock to cross the VND600,000 mark, hitting the 5 percent ceiling to close at VND604,000.

IT developer FPT also rose 5 percent to close at VND495,000.

Other heavyweights to gain 5 percent were REE which closed at VND326,290, GMD which closed at VND396,720, and VNM which closed at VND632,890.

Analysts attributed the sharp rise to positive news about the future of the market.

Nguyen Van Dung, director of the Hanoi Securities Trading Center, added that foreign portfolio inflows into the market had jumped because of optimistic forecasts on the country’s economy and stock exchange by international financers like Merrill Lynch and Credit Suisse.

But he warned that a steady market needed experienced investors who were not driven by the “herd instinct”.

Compiled by Dong Ha

BBC: Listing and trading additionally issued stocks

Name of Listed Company: BIEN HOA CONFECTIONERY CORPORATION (BIBICA)

Add: Bien Hoa 1 Industrial Zone, Dong Nai Province.

Tel: 84.61. 836576; Fax: 84.61.836950

BIBICA will list and trade the additionally issued stocks according to Decision No. 523/QD-UBCK dated October 25^th, 2006 issued by the Chairman of the State Securities Commission in HOSTC.

Stock symbol: BBC

Stock type: Common Stock

Par value: VND10,000

Registered volume to issue: 1,447,426 shares

Total of the mobilized capital: VND14,474,260,000

Additional listing date: October 25^th, 2006

Trading date: October30^th, 2006

Bonds worth $15 million sold in closed bidding

The Government and HCM City yesterday sold nearly US$15 million worth of bonds through a closed bidding process.

Of VND300 billion ($18.8 million) worth of State Treasury bonds offered for tender, only 63 per cent, worth VND190 billion ($11.88 million), were sold.

This Government bond issue marked the 26th issue of State Treasury bonds this year.

The HCM City Urban Development Fund sold out all of VND50 billion ($3.1 million) worth of bonds it offered for bid.

Both types of bonds have a face value of VND100,000 ($6.25) each, carry terms of five years, and pay interest annually of 8.2 per cent per year for the State Treasury bonds and 8.8 per cent per year for the municipal bonds. Both types of bonds will be listed for subsequent trading on both the Ha Noi and HCM City markets.

Government bonds sold earlier this year successfully mobilised trillions of dong to meet economic development and budgetary needs, a trend the State Treasury expected would continue, the Ministry of Finance announced.

The Ministry of Finance hoped to develop a deeper and more liquid bond market over the next few years.

Source: Vietnam News

Nation's stock market cools after record highs

The VN Index suffered decreases on the two final trading days this week, 31 points on Dec. 21 and another 34.73 points on Dec. 22, closing the week at 744.15, after reaching a six-year record high of 809.66.

"The index jumped from 633.05 at the end of November to the record high of over 809 on Dec. 20, which shows a hot market," said the centre's director Tran Dac Sinh.

"I'm afraid that a set-back like the one in April will occur again. The average P/E (price/earnings ratio) of listed companies is around 38 compared to 10 to 17 of other markets," said Sinh.

"That ratio means share prices are now too high over their fundamental value so the market may adjust at any time."

He said the positive performance of listed companies, the country's WTO membership and the approved PNTR by the US Congress and increased financial investment, were among the factors that pushed up the price.

The first IT blue-chip FPT made its debut on December 13 at 400,000 VND and rose every trading day to 510,000 VND on Dec. 20 and then declined to 461,000 VND on Dec. 22.

Sixty five companies suffered losses, three remained unchanged and seven enjoyed increases on Dec. 22.

Overview of informal stock market

The World Bank report on the realisation of rules and principles of corporate management in Vietnam was uploaded on the website of the State Securities Commission (SSC), providing an interesting picture about Vietnam’s informal stock market.

The WB specialists drew a rather comprehensive picture of the informal stock market, which is now beyond the management of Vietnam’s securities managers. They held that the non-regulated informal market has not been affected by the establishment of the Ho Chi Minh City Securities Transaction Centre (STC) in 2000.

More active than formal market

Primarily, transacted shares on the market are of equitised SOEs and stock companies of private businesses and investment organisations. They have not been regulated by any securities management bodies, namely the State Securities Commission and Ho Chi Minh City STC.

By December 22, 131 out of nearly 6,700 stock companies were listed on STCs in Ho Chi Minh City and Hanoi. But shares of not-yet-listed companies have been traded on the informal market, which is estimated to be three to six times higher than that on STCs. The daily transacted value is three times higher than that of the official market.

Non-licenced brokers

The unofficial market is an informal network of licenced and non-licenced intermediaries dealing with securities transactions which have not been listed at the Ho Chi Minh City STC. There are two groups of intermediaries on the informal market. One group includes independent and non-licenced go-betweens, about 60 to 80 in Ho Chi Minh City. The majority of the group is financial institutions consisting of licenced securities companies. The other group comprises licenced securities companies which work illegally with non-listed securities and are allowed to trade only listed securities on the official market.

The transactions are conducted with some kinds of documents. The payments in cash are done within a few days of transactions.

High risk

Informal transactions are not protected by law or any legal organisations but depend largely on the prestige of non-licenced intermediaries.

The informal market is unable to protect investors due to its ineffective, unfair, and obscure market mechanism, not like that of STCs. Regulations of stock markets are not applied to non-organised STCs. So the SSC is powerless in informal market management.

The prices of shares are doubtful due to the shortage of report systems and transparent transaction information. The financial and professional capabilities of brokers are not under control and the information on published shares is not identified. Hence, informal transactions are rather ineffective and small scale; however, they still make up the larger part of all transactions throughout the country.

According to the report, another factor preventing companies from listing on STCs are requests to provide transparent listing information. Maintaining vague capital to avoid tax is a desire of numerous companies. It is difficult to motivate them to join the official market unless corporate standards are clear. Moreover, higher listing criteria are necessary to attract investors.

Management, how?

A currently being deliberated measure is raising and applying corporate transparency criteria to all companies, rather than to only listed companies at the moment. This is to create a fair playground for both non-listed and listed companies. This will also help to improve attraction to listing on STCs which will not be seen as a large burden on enterprises. The 2006 Securities Law also regulates all public companies.
Another practical tool in the management of off-STCs transactions is the setting up systems of concentrated registration and private securities brokerage registration.

Ten new companies list shares on Ha Noi bourse

More than 109.3 million shares from 10 companies were newly listed on the Ha Noi stock exchange on Dec. 27, increasing the exchange's overall value up to 10.8 trillion VND (677 million USD).

Seventy-seven companies and one commercial bank are now listed on the exchange.

The newest additions are Petrolimex Petrochemical (PLC), HCM City Book and School Equipment (STC), Song Da Investment and Development (SIC), Phu Thinh-Nha Be Garment (NPS), Song Da 5 (SD5), Song Da 7 (SD7), H.A.I. Agricultural Pharmaceutical (HAI), Nui Beo Coal (NBC), Minh Phu Seafood (MPC) and Ha Noi Milk (HNM).

Four additional companies also got on board the HCM City Securities Trading Centre on Dec. 27, bringing the total number of listed firms to 94.

The four companies are Hoa Binh Construction and Real Estate (HBC), Khanh Hoa Power (KHP), Lu gia Mechanical and Engineering (LGC) and Viettronic Tan Binh (VTB).

The HCM City centre will receive on Dec. 28 six new arrivals, the Saigon Fishing Net (SFN), My Chau Packaging (MCP), the food company Safoco (SAF), Petrolimex Transport (PJT), Binh Dinh Mining (BMC) and the investment and trading DIC companies.

Vietnam stock exchange halts trade after "a small technical error

Trade was halted after the first order matching as the error emerged in data transmitted from the centre to securities companies.

"It is a small technical error in the system but we have to stop," Ho Chi Minh City Securities Trading Center director Tran Dac Sinh said.

Trade should be resumed on Monday.

Source: Reuters

Exchange expands to 3x daily

Vietnam’s burgeoning stock market plans to raise order matching from twice a day to thrice daily to meet increasing demand from investors, the exchange’s watchdog body has said. The Vietnam Stock Exchange is changing with the times. “Investors have now placed so many orders that brokers can hardly handle them in two sessions, so an increase in order matching is inevitable,” Tran Dac Sinh, director of the Ho Chi Minh City Securities Trading Centre (HSTC), said when he unveiled the plan last week. “The change will possibly start from mid-June this year,” he told Vietnam Investment Review, but declined to give an exact date for the change. He said other share trading rules will remained unchanged. The change is also a preparatory step to develop the trading centre, which was launched in July 2000 and now has 35 listed companies with a market capitalisation of more than $1.5 billion, into a national stock exchange by early 2007, the director said. Under the project, which is to be sent to the Ministry of Finance for consideration by June, the exchange will adopt an automatic order matching approach, which will enable investors to place both market and limit orders. The exchange will operate under the form of a limited liability company in the first three years and then sell shares to the public to transform itself into a shareholding concern. The exchange will be subject to both the Unified Enterprise Law, which will come into force in July, and the Law on Securities, which is expected to be passed next month. It can issue listing conditions and licences as well as supervise stock transactions and the activities of its members. It will also allow investors to trade not only bonds, fund units and corporate shares but also their derivatives like forwards, futures and options, he said. The trading centre now acts both as a regulator and a service provider, which Sinh said was no longer suitable. “The State Securities Commission should serve as a regulatory body while the exchange will be tasked with creating more commodities and supporting transactions to go smoothly,” he said. He said to develop the centre into an exchange was inevitable as many more investors and companies had been joining the market. In preparation for the development, in the first quarter of this year, the trading floor was moved to a larger hall at 45-47 Ben Chuong Duong Street, District 1, which also has better technical facilities. Sinh said a project, in cooperation with domestic and foreign partners, to provide a new, modern trading system is under development. “The new project will enable securities companies to send in more trading orders and the centre to carry out automatic order matching,” said the director. Vietnam’s stock market has seen strong development in recent months, with the benchmark VN-Index rising more than 100 per cent over last year-end period. It broke the old all-time high of 571.04 point set five years ago to close at 591.39 last Friday and experts predict it will breach the 600 level soon. Market capitalisation has increased from a level of $144 million two years ago to more than $1.5bn and is expected to rise by nearly 30 per cent to $2.3bn in June with the expected listing of the Ho Chi Minh City-based Sacombank. No. 758/April 24-30, 2006 By Duong Nguyen - Vietnam Investment Review

Hanoi Securities Trading Center

Hanoi Securities Trading Center (Hanoi STC) located in Hanoi, Vietnam was launched in March 2005 and handles auctions and trading of stocks and bonds. It was the second securities trading center to open in Vietnam after to Ho Chi Minh City Securities Trading Center.

Ho Chi Minh City Securities Trading Center

Ho Chi Minh City Securities Trading Center (HSTC) in Ho Chi Minh City, Vietnam was established in July 2000. It is an administrative agency of the Vietnam State Securities Commission, and manages Vietnam's securities trading systems.

The Stock Trading Center of Vietnam (‘STC’), located in Ho Chi Minh City, was officially inaugurated on July 20, 2000, and trading commenced on July 28, 2000. Initially, two equity issues were listed, Refrigeration Electrical Engineering Joint Stock Corporation (‘REE’) and Saigon Cable and Telecommunication Material Joint Stock Company (‘SACOM’). As of this date, an additional 20 issues are also listed with a current market capitalization of US$239m.

The Stock Trading Center of Vietnam is also the official mechanism through which new government bonds are issued, and it functions as the secondary market for a number of existing bond issues. As of this date there are 120 listed bonds with a total market capitalization of US$866m. All securities traded on the Stock Trading Center of Vietnam are denominated in Vietnamese Dong. Par valued is standardized at VND10,000 for equities and VND100,000 for bonds. Trading is conducted daily with two matchings in a morning session, from 9A.M. to 11A.M.

The State Securities Commission (‘SSC’), a body established formally in 1996, is responsible for capital markets development, licensing of participants, and the issue and enforcement of regulations. A wide range of regulations, with significant input from multilateral bodies such as the International Finance Corporation, have been promulgated, including those dealing with such issues as insider trading, take-over trigger points and margin lending. In order to be listed, a company must have been profitable for at least 2 years, have a minimum capitalization of VND5b (approximately US$318,000), and have at least 50 shareholders who are not employees of the company, holding at least 20% of stake. Foreign invested joint venture companies are technically qualified to list, but in order to do so, they must be reorganized into joint stock company status. Companies intending to list must also submit to audit by an approved, independent auditing company.

In the beginning, an overall foreign ownership limit of 20% for equities and 40% for bonds were implemented. In July 2003, in a bid to improve liquidity, the government raised the foreign ownership limit for equities to 30% and totally removed foreign ownership limit of a particular issuer’s bonds. Foreign participants on the Stock Trading Center of Vietnam must register through a custodian licensed to hold securities on behalf of foreigners. Once registered, a securities transaction code is issued to the foreign investor that will permit securities trading.

The mechanism of trading on the Stock Trading Center of Vietnam is via an automated order-matching system. The capacity of the system is 300,000 orders per day. Currently, trading limits of 5% (for bonds and equities) either side of the previous close apply. No price restrictions have been set for newly listed securities but price caps were applied in the case of the very first day of the market’s operations.

Settlement is centralized through the Stock Trading Center of Vietnam using the Bank of Investment and Development of Vietnam (BIDV), a state-owned commercial bank. Several other domestic banks and securities companies have been authorized to accept custody of securities, with HSBC’s and Deutsche bank’s Ho Chi Minh City branches currently the only banks providing custody services for foreign investors. Custody is based on a central depository, central registry book entry system.

Presently, there are thirteen licensed securities companies. Of these, nine have been licensed to conduct a full range of securities services including underwriting, brokerage, custody, research, portfolio management and trading. The minimum capital required to operate effectively as an investment bank is VND43b (c. US$2.7m).

The current market capitalization is now US$239m for equities and US$866m for government bonds.

Official Website

http://www.vse.org.vn

See also

• Hanoi Securities Trading Center
  

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Promulgated by the Governor of the State Bank of the Socialist

DECISION OF THE GOVERNOR OF THE STATE BANK Of VIETNAM ON THE PROMULGATION OF THE REGULATION ON SHORT TERM CREDITS FOR ECONOMIC ORGANIZATIONS No. 198/QD-NH.1

(Promulgated by the Governor of the State Bank of the Socialist Republic of Vietnam on September 16, 1994)

SUBJECT: BANKING AND FINANCE

ISSUING-DEPT: GOVERNOR OF THE STATE BANK OF VIETNAM

ISSUE-DATE: 09/16/1994

IMPLEMENT-DATE: 09/16/1994

LENGTH: 428 words

TEXT:

The Governor of the State Bank of Vietnam

Pursuant to the Ordinance on State Bank of Vietnam issued in connection
with Order No.37/HDNN8, the ordinance on Banks, Credit Cooperatives
and financial Corporations issued in connection with the Order No.38/HDNN8
dated May 24th, 1990 of the President of the State Council of the Socialist Republic of Vietnam.

Pursuant to the Decree No. 15/CP dated March 2nd, 1993 of the Government stipulating the task, powers and responsibilities for the State management of the Ministries and Ministerial-ranking bodies.

On the proposal of the Director of the Credit Department for conomic studies.

DECIDED

Article 1 :

To promulgate in connection with this Decision The Regulation on
Short - term credits for economic organizations.

Article 2 :

The Regulation on short - term credits issued in connection with
this Decision are generally applied to State Commercial Banks, Investment
and Development Banks. Commercial Stock Banks, Joint - venture Banks.
Branches of foreign Banks in Vietnam, Credit Cooperatives, financial
Corporations operating in accordance with the ordinance on banks,
credit cooperatives and financial corporations.

Article 3 :

This Decision shall come into effect from the signing date and replace:
the Regulation on short term credit for economic organizations issued
in connection with Decision No.04/QD-NH dated January 8th, 1991 and
other documents relating to this Regulation.

Article 4 :

The Chief of Governor's Office, the General Inspector of the State
Bank, Heads of the sections belonging to the Central State Bank, the
Directors of the provincial and city State Banks, the General Directors
(Directors) of State Commercial Banks, Investm ent and Development
Banks, Commercial Stocks Banks, financial Corporations, joint venture
Banks, the branches of foreign banks in Vietnam and managers of credit
cooperatives shall be responsible for the implementation of this decision.

for The State Bank of Vietnam Governor CAO SY KIEM (Signed)

Vietnam Stock Exchange

The Stock Trading Center of Vietnam (‘STC’), located in Ho Chi Minh City, was officially inaugurated on July 20, 2000, and trading commenced on July 28, 2000. Initially, two equity issues were listed, Refrigeration Electrical Engineering Joint Stock Corporation (‘REE’) and Saigon Cable and Telecommunication Material Joint Stock Company (‘SACOM’). As of this date, an additional 20 issues are also listed with a current market capitalization of US$239m.

The Stock Trading Center of Vietnam is also the official mechanism through which new government bonds are issued, and it functions as the secondary market for a number of existing bond issues. As of this date there are 120 listed bonds with a total market capitalization of US$866m. All securities traded on the Stock Trading Center of Vietnam are denominated in Vietnamese Dong. Par valued is standardized at VND10,000 for equities and VND100,000 for bonds. Trading is conducted daily with two matchings in a morning session, from 9A.M. to 11A.M.

The State Securities Commission (‘SSC’), a body established formally in 1996, is responsible for capital markets development, licensing of participants, and the issue and enforcement of regulations. A wide range of regulations, with significant input from multilateral bodies such as the International Finance Corporation, have been promulgated, including those dealing with such issues as insider trading, take-over trigger points and margin lending. In order to be listed, a company must have been profitable for at least 2 years, have a minimum capitalization of VND5b (approximately US$318,000), and have at least 50 shareholders who are not employees of the company, holding at least 20% of stake. Foreign invested joint venture companies are technically qualified to list, but in order to do so, they must be reorganized into joint stock company status. Companies intending to list must also submit to audit by an approved, independent auditing company.

At the beginning, an overall foreign ownership limit of 20% for equities and 40% for bonds were implemented. In July 2003, in a bid to improve liquidity, the government raised the foreign ownership limit for equities to 30% and totally removed foreign ownership limit of a particular issuer’s bonds. Foreign participants on the Stock Trading Center of Vietnam must register through a custodian licensed to hold securities on behalf of foreigners. Once registered, a securities transaction code is issued to the foreign investor that will permit securities trading.

The mechanism of trading on the Stock Trading Center of Vietnam is via an automated order-matching system. The capacity of the system is 300,000 orders per day. Currently, trading limits of 5% (for bonds and equities) either side of the previous close apply. No price restrictions have been set for newly listed securities but price caps were applied in the case of the very first day of the market’s operations.

Settlement is centralized through the Stock Trading Center of Vietnam using the Bank of Investment and Development of Vietnam (BIDV), a state-owned commercial bank. Several other domestic banks and securities companies have been authorized to accept custody of securities, with HSBC’s and Deutsche bank’s Ho Chi Minh City branches currently the only banks providing custody services for foreign investors. Custody is based on a central depository, central registry book entry system.

Presently, there are thirteen licensed securities companies. Of these, nine have been licensed to conduct a full range of securities services including underwriting, brokerage, custody, research, portfolio management and trading. The minimum capital required to operate effectively as an investment bank is VND43b (c. US$2.7m).

The current market capitalization is now US$239m for equities and US$866m for government bonds.

With the World Bank estimating domestic savings of some US$5b outside the official economy, considerable liquidity could flow into the securities markets in time. The SSC in conjunction with the Asian Development bank have formulated a development plan for Vietnam’s Capital markets which if successfully implemented would result in 100 listed companies on the Ho Chi Minh Exchange and a similar number on the Hanoi exchange by the end of 2005 with an associated total market capitalization of between 2 and 3 percent of GDP.

see details: Vietnam Stock Exchange

Vietnamese Stocks - Equities in Vietnam

Vietnam Stock Exchange - The Stock Exchange for Vietnamese Stock Market

The Stock Trading Center of Vietnam (‘STC’), located in Ho Chi Minh City, was officially inaugurated on July 20, 2000, and trading commenced on July 28, 2000. Initially, two equity issues were listed, Refrigeration Electrical Engineering Joint Stock Corporation (‘REE’) and Saigon Cable and Telecommunication Material Joint Stock Company (‘SACOM’). It is the smallest stock exchange in Southeast Asia. The Vietnam stock exchange is both operated and regulated by the State Securities Commission.

More information about Vietnam Stock Exchange

Vietnamese Securities Companies

As of February 2004, thirteen companies have been licensed by both the State Securities Commission and Ho Chi Minh City Stock Trading Center. Of these, nine have capital of VND43bn (US$2.73m) or more and have been licensed to conduct a full range of securities business including brokerage, advisory, fund management, proprietary trading and underwriting. Saigon Securities Incorporation, Hai Phong Securities Joint Stock Company and EAB Securities Company have chartered capital ranging from VND20-22bn (US$1.27m-US$1.4m) while Mekong Securities Joint Stock Company are capitalized at VND6bn (US$0.38m). Neither company is licensed to conduct proprietary trading or underwriting.

More information about Vietnamese Stock Brokers

Foreign Participation

Foreign ownership of shares in companies listed on the Ho Chi Minh City Stock Trading Center is limited to 49% of the company’s issued share capital. For bonds, foreign investors can hold 100% ownership of a particular issuer’s bonds.

Foreign investors who wish to purchase shares through the Ho Chi Minh City Stock Trading Center are required to register through a custodian licensed to hold securities on behalf of foreigners – of which there are currently three; The Hongkong and Shanghai Banking Corporation, Deutsche Bank AG and Standard Chartered Bank. Beside these three, securities companies can play role of custodian unit to hold stocks for foreigners as well. Once registered, a Securities Transaction Code is issued to the foreign investor who may then open a Trading Account with one or more of the twelve licensed Securities Companies.

How to Buy Vietnam Stocks

For private investors, it is necessary to fly to Ho Chi Minh City (Saigon) to open a securities account and a bank account. Foreigners are able to transfer funds out of Vietnam after fulfill tax obligations. There is no time constrain.

You may wish to contact Vietnamese stock brokerage firms on this list for more information.

Thanks for Minh Quan for the updates of the rules of Vietnam stock exchange.

see details Vietnamese Stocks - Equities in Vietnam