Pandemic, new tech drive growth in stock market investors

Social distancing due to COVID-19 has created more local stock investors in Việt Nam, especially among internet-savvy young people.

Being locked at home due to COVID-19, more young people are investing in the local stock market. A 58 per cent increase in new accounts in the first half of 2021 has been recorded. — Photo cafef.vn

Social distancing due to COVID-19 has created more local stock investors in Việt Nam, especially among internet-savvy young people.

According to data, there were 619,911 new accounts opened in the first six months of the year, an increase of 58 per cent compared to the first six months of 2020, which also registered a record number of new accounts.

As a freelance photographer, Nguyễn Quang Anh, 24, in Liễu Giai Street, Hà Nội did not have a lot of work even before the social distancing orders were put in place.

Anh said the boredom of having to stay at home because of the social distancing order and fewer working opportunities led him to invest in the stock market with some investment-friendly and user-friendly applications.

Anh told Việt Nam News: "Being hit by the fourth wave of COVID-19 and with everything digitised, it is a good time to focus on investing. It is one of the few activities we can do when we must stay at home.”

With more money, Lê Tuấn Phong, 28, in Láng Hạ Street chooses to invest in stocks and ETFs listed on the HCM City Stock Exchange (HoSE) via a prestige open fund.

Phong said a good fund would help him make bigger profits, however, he also wanted to invest by himself.

Phong told Việt Nam News: "It is not difficult to find information on social networks through financial investment groups and securities and digital currencies," adding the majority of investors were his age.

There are groups with hundreds of thousands of people, who update content and operate live streaming investment channels, sharing financial knowledge, and attracting a lot of followers.

Since last year, the number of investors on mobile apps has increased sharply. Local investment apps specializing in investments and stocks like Finhay and Infina are attractive to young investors.

Recently, Infina, announced an oversubscribed US$2 million seed round from Saison Capital, Venturra Discovery, 1982 Ventures, 500 Startups, Nextrans, and angel investors like executives at Google and Netflix.

Launched in January 2021, the app serves the investment demands of users between the ages of 25 and 40 with a minimum contribution of $25. Those investors can choose from assets including savings accounts, term deposits, fractionalized real estate and mutual funds.

At the launch of the app, the firm said only about 3.2 per cent of people in Vietnam had invested in stocks. That rate had increased thanks to a high internet penetration rate of more than 70 per cent.

Experts in the market said that the growth was largely contributed to the technology which allows investors to open an account online.

According to Dragon Capital Vietnam, a number of open-ended fund investors under the age of 35 on digital channels account for approximately 60 per cent of the total number of investors in Viet Nam.

The fund calculated that their average investment amount was surprisingly high compared to the average income in Việt Nam, at VNĐ18 million ($782) per month.

They said the trend of investing through mobile technology will play a more dominant role in the market moving forward.

As a long-standing fund management company in Việt Nam with more than $5 billion in assets under its management, Dragon Capital Vietnam sees the future for investors in technology platforms.

On July 26 it introduced the DragonX investment application to the market, which is seen as a breakthrough for investment fund management in Vietnam. Together with the launch of DragonX, the fund also adjusted the minimum investment required to only VNĐ100,000 while completely waiving the purchase fee to attract more investors.

DragonX provides users with investment knowledge in an easy to understand way through posts, daily newsletters and investment videos from the firm’s team of experts.

Trần Thanh Tân, vice Chairman of the Board of Directors of Dragon Capital Vietnam told local media: "I believe that a country's financial market can only develop strongly if there are a large number of local investors. DragonX is our way to bring people closer to good investment opportunities in the Vietnamese financial market.

Beware of tricks

Nguyễn Thế Truyền, director of Thiên Thanh Law Partnership, the City Bar Association, Hà Nôị said with the internet environment, people can transact easily and some of them were too eager to pour their money into apps with the dream of "becoming a billionaire".

In April more than 1,800 people in HCM City were cheated of millions of US dollars by an investment platform app called Coolcat, which announced itself as an insurance investment firm with more than five years of experience headquartered in the UK. It then vanished taking with it all of the money of the app users in the city.

Truyền said being at home for long periods of time, people often find new things to try however investment is not easy. A 'quick money' mindset could lead them to be drawn into using fraudulent apps.

In early July, the leader of the State Securities Commission of Vietnam (SSC) announced despite COVID-19's complicated development, the local indexes continued to set new records, helping the stock market enjoy the second fastest growth rate in the world. — VNS

Source: VNA
vietnamnews.vn

Related News

Numerous growth drivers, opening opportunities for enterprises

Numerous growth drivers, opening opportunities for enterprises

VCN - That is the appraisal given by experts at the seminar "HUBA Entrepreneurs' Coffee" under the theme: "Vietnam and HCMC's Economy in 2024 - Issues of interest to entrepreneurs," which took place on March 9, organized by the Ho Chi Minh City Business Association (HUBA).
The Minister of Finance chaired the Vietnam - Korea Financial Investment Promotion Conference

The Minister of Finance chaired the Vietnam - Korea Financial Investment Promotion Conference

VCN - On March 7, in Seoul Capital, South Korea, the State Securities Commission (SSC) organized a financial investment promotion conference with the theme "Vietnam - Investment destination". Minister of Finance Ho Duc Phoc attended and chaired the Conference.
Vietnam’s stock market meets 7 of 9 criteria for upgrading the stock market

Vietnam’s stock market meets 7 of 9 criteria for upgrading the stock market

VCN – “Vietnam’s stock market meets 7 of 9 criteria in upgrading the stock market, and may be upgraded by 2025, thanks to great efforts of state management agencies and market members” said by experts at the talk show held on March 5.
Determine to soon upgrade Vietnam’s stock market

Determine to soon upgrade Vietnam’s stock market

VCN- Despite fluctuation over the past time, Vietnam's stock markets recognized to have positive growth compared to other countries in the region and the world. In 2024, the stock market is forecast to be more positive due to many supporting factors. At the recent conference to deploy the task of developing the stock market in 2024, experts and businesses proposed many important solutions to boost the market in both quality and scale.

Latest News

Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially during the peak month of tax settlement.
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

VCN - To complete the task from now until the end of 2024 and successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - With advantages such as being cheaper than domestic capital, and accompanied by many factors such as technology, skills, management, market... foreign capital is a popular trend among businesses. Domestic enterprises seek through M&A activities to ensure sustainable development for the future.

More News

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

VCN - Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

VCN - The Ministry of Finance aims to continue to strongly improve the business environment, create a healthy competitive environment, rapidly increase the number of newly established businesses, and reduce the rate of businesses temporarily suspending operations; reduce input costs and legal compliance costs in investment and business activities, reduce policy risks, strengthen trust, create a fulcrum for recovery and improve business resilience.
Vietnam tackles obstacles to stock market upgrade

Vietnam tackles obstacles to stock market upgrade

Vietnam's ambition to elevate its stock market from "frontier" to "emerging" status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.
Looking forward clear instructions in tax finalization in 2023

Looking forward clear instructions in tax finalization in 2023

VCN - Mr. Hoang Quang Phong (photo), Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) discussed supporting taxpayers in tax finalization in 2023.
Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Tax sector accompanies and supports tax finalization

Tax sector accompanies and supports tax finalization

VCN - In the first months of 2024, the Tax sector has deployed peak months to support tax finalization in many different forms, thereby solving many problems in settlement of corporate income tax and personal income tax for taxpayers.
Minister of Finance: Fairness and transparency for the insurance market

Minister of Finance: Fairness and transparency for the insurance market

VCN - According to Minister of Finance Ho Duc Phoc, the Ministry has strengthened inspections to correct violations in the insurance sector, demonstrating fairness and transparency in the market.
Vietnamese securities companies race to boost capital amid high market demand

Vietnamese securities companies race to boost capital amid high market demand

These companies understand the importance of boosting their capital to remain competitive and avoid falling behind their peers.
Central bank required to take urgent measures to stabilise gold market

Central bank required to take urgent measures to stabilise gold market

The Government has directed the State Bank of Vietnam (SBV) to urgently inspect and supervise to stabilise the gold market.
Read More

Your care

Latest Most read
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially dur
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

To successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - Sharing at the conference "Consumer goods and distribution industry: M&A trends and investment strategies to raise capital for Vietnamese enterprises", organized by the Business Association of High Quality Vietnamese Goods and the Leading Business C
Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
Mobile Version