Top 10 landmarks on the stock market in 2019

The following are the top 10 events on the Vietnamese stock market in 2019 as selected by the Securities Journalists Club
top 10 landmarks on the stock market in 2019

SK Group and Vingroup leaders at the signing of deal in May 2019 to allow the former to purchase 6.15 per cent in the latter for 1 billion USD. (Photo courtesy of Vingroup)

1. New Law on Securities approved

The 14th National Assembly on November 26 approved the amended Law on Securities during its eighth meeting. The new law will take effect from 2021.

The new law aims to improve the quality of companies trading shares on the stock market and better protect investors.

In addition, the law paves the way for the establishment of the Vietnam Stock Exchange and the Vietnam Securities Depository and Settlement Corporation, in which the State holds more than 50 percent of charter capital or total voting shares.

2. Overhaul plan for stock market passed

The Prime Minister on February 28 issued Decision 242 on restructuring the securities and insurance sectors until 2025.

The Government wants the value of the stock market to reach 100 percent of Vietnam’s total gross domestic product (GDP) in 2020 and 120 percent in 2025. Meanwhile, the value of the bond market is expected to reach 47 percent of total GDP in 2020 and 55 percent in 2025.

3. Booming bond market

The corporate bond market flourished in 2019 with a total of 237 trillion VND worth of bonds issued in January-November period, up 6 percent on-year, with 30 percent of the total coming from real estate companies. The value of the corporate bond market is now equal to 10.26 percent of the country’s total GDP. Property developers have the highest bond yield rates of 15 percent per annum, which has worried investors about potential risks.

4. Rise of domestic exchange-traded funds

The stock market has seen strong development in local exchange-traded funds E1VFMVN30, which raised nearly 2.2 trillion VND from investors in 2019. Foreign investors bought a net value of 2.4 trillion VND in E1VFMVN30 fund certificates, making it the second largest ETF in terms of value behind the US fund VanEck Vectors Vietnam.

5. Influx of foreign capital

Foreign investors rocked the market by buying into local large-cap firms. Firms of the Republic of Korea took the spotlight as SK Group purchased 6.15 percent in Vingroup capital for 1 billion USD, and KEB Hana Bank bought a 15 percent stake in the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) for 882 million USD. Other big deals include the 173 million USD buy-in of Japanese insurer Sumitomo Life for Bao Viet Group.

6. FTM fraud

Shares of the HoSE-listed firm Duc Quan Investment and Development JSC (FTM) lost nearly 91 percent in four and a half months since August 13 to end December 26 at 2,190 VND per share. The sharp decline raised concerns among investors about its directors who had taken advantage to manipulate the share price.

A dozen securities firms had accepted FTM shares as mortgages from investors for margin lending, and they had to force-sell the stock to cut losses.

7. Fine for real estate firm for not registering

On November 19, the State Securities Commission issued a 400 million VND fine to real estate company FLCHomes for having not registered its public share issuance with the market regulator, and the company was asked to revoke all eligible shares and refund all investors.

FLCHomes had an instant reply, claiming it had completed all requests from the SSC and the company declared no investors had asked for the refund.

8. Covered warrant market debuts after seven-year preparation

On June 28, the Ho Chi Minh Stock Exchange launched a new product called covered warrants. This was the second derivative product on the Vietnamese stock market after the VN30 futures.

By December, average trading volume of covered warrants reached 2.81 million contracts each day, worth 7.44 billion VND.

9. Lower-than-expected liquidity in 2019

Stock market liquidity had been widely expected to increase sharply in 2019 thanks to the influx of foreign capital. However, trading liquidity fell 29 percent year-on-year to 4.64 trillion VND in each session though the benchmark VN-Index had gained 6.8 percent year-to-date by December 19.

10. Floor brokerage fee removed

Circular 128 dated December 27, 2018 sets the maximum rate of brokerage fee at 0.5 percent of the value of a transaction but mentions nothing about the lowest rate. After the circular took effect on February 15, 2019, many securities firms zeroed their brokerage fees to attract investors. There are now 70 securities firms and the top 10 hold 65-70 percent of the brokerage market share.

Source: VOV

Related News

Promote  information transparency to increase large-scale investors in  stock market

Promote information transparency to increase large-scale investors in stock market

VCN - Deputy Minister of Finance Nguyen Duc Chi talked with Customs News about the goal of upgrading Vietnam's stock market and solutions to achieve this goal by 2025.
Building the Vietnamese brand associated with green and sustainable development

Building the Vietnamese brand associated with green and sustainable development

VCN - According to experts, in the current context, branding becomes even more urgent, helping to increase endogenous resources for businesses, helping businesses move towards strong development, gradually reaching further in the domestic and world markets.
Export of denim fabrics quickly recovers

Export of denim fabrics quickly recovers

VCN - The export market for Vietnam's denim products (the fabric used to make jeans) has experienced a swift recovery and positive growth potential. To anticipate this trend, businesses are actively investing in and expanding their factories to enhance production capacity and meet market demands.
Enhancing the ability to protect consumer rights

Enhancing the ability to protect consumer rights

VCN - To protect consumers, the Law on Consumer Rights Protection 2023, effective from July 1, 2024, has expanded the scope to foreign businesses providing products and services to consumers in Vietnam. At the same time, there are many new regulations related to the protection of consumer information, responsibility for providing information, product recall…

Latest News

Proposal to increase Special Consumption Tax on tobacco products

Proposal to increase Special Consumption Tax on tobacco products

VCN - At the workshop Special Consumption Tax on cigarettes held by Vietnam Tax Consulting Association and the Institute of Financial Strategy and Policy on July 16, experts and businesses clarified the goals and content of amended the special consumption tax policy on tobacco products. According to experts, there cannot be a solution that fully ensures the benefits of both consumers, the state and businesses, but it is necessary to choose the most optimal option to achieve the initially set goals.
Savings of individual customers at banks hit record high

Savings of individual customers at banks hit record high

In spite of low interest rates, figures from the State Bank of Vietnam (SBV) released this week show deposits of individual customers increased by more than VNĐ39.7 trillion in April, to reach more than VNĐ6.7 quadrillion.
Managing fiscal policy has achieved many positive and comprehensive results

Managing fiscal policy has achieved many positive and comprehensive results

VCN - On July 15, the Ministry of Finance held an online conference to summarize state budget financial work in the first 6 months of the year, implementing tasks in the last 6 months of 2024. Minister of Finance Ho Duc Phoc attended and directed the conference. Also attending the Conference were Deputy Ministers of Finance, leaders of units under the Ministry of Finance.
Determine tools, policy for inflation control

Determine tools, policy for inflation control

VCN - According to economic expert Associate Professor, PhD. Ngo Tri Long (photo), former Director of the Price Market Research Institute (Ministry of Finance), inflation is an issue that needs special attention, especially related to the management of monetary policy, interest rates, increasing prices of goods and services...

More News

The impact of wage increases on inflation will not be too significant

The impact of wage increases on inflation will not be too significant

VCN - Addressing concerns related to wage and price increases, Dr. Nguyen Duc Do, Vice Director of the Institute of Economics - Finance (Finance Academy), believes there are not many factors causing sudden price surges in the last 6 months of 2024. Therefore, it can be expected that the rate of price increases in the last 6 months will be comparable to that in the first 6 months of 2024.
Imposing and raising special consumption tax contributing to change consumption behavior

Imposing and raising special consumption tax contributing to change consumption behavior

VCN - At the Workshop on Comments on Completing the Revised Law on Special Consumption Tax (SCT) organized by the Vietnam Confederation of Commerce and Industry (VCCI) on July 11, many experts and businesses contributed their opinions to clarify the importance and impact of the revised special consumption tax law, which emphasizes the addition of taxable areas or tax increases to change society's consumption behavior.
The local Finance sector is flexible and strict in managing budget revenues and expenditures

The local Finance sector is flexible and strict in managing budget revenues and expenditures

VCN - Although the forecast for the last 6 months of the year will still have many difficulties and challenges, the Finance sector in all localities expressed their determination to strive to achieve and exceed estimates, while strengthening the prevention of revenue loss and handling tax debt recovery, etc.
Finance industry excellently accomplishes financial and budget tasks in the first half of 2024: Minister Ho Duc Phoc

Finance industry excellently accomplishes financial and budget tasks in the first half of 2024: Minister Ho Duc Phoc

VCN - The Finance industry excellently accomplishes financial and budget tasks in the first half of 2024, said by Minister of Finance Ho Duc Phoc at the Online conference to review performance of financial and budget tasks in the first half of 2024 and set out tasks for the second half of the year.
Mobile Money users in Vietnam rise rapidly

Mobile Money users in Vietnam rise rapidly

The number of Mobile Money service users in Vietnam reached more than 8.8 million customers by the end of May, an increase of 3.3% over the same period last month.
Foreign service providers have paid VND4,039 billion of tax in the first half of 2024

Foreign service providers have paid VND4,039 billion of tax in the first half of 2024

VCN - In the first six months of 2024, there are 26 foreign service providers newly registered, declared and paid tax in Vietnam.
Continue to warn about forms of fraud against taxpayers

Continue to warn about forms of fraud against taxpayers

VCN - In response to the increasing prevalence of sophisticated scams targeting taxpayers, the General Department of Taxation (GDT) has issued directives to tax authorities nationwide to strengthen individual income tax management and provide warnings and preventive measures to help taxpayers remain vigilant and protect themselves from fraudulent activities.
Under amended law, it needs clarification on cooperation between commercial banks and insurance companies

Under amended law, it needs clarification on cooperation between commercial banks and insurance companies

VCN - Banks and insurance businesses have different understandings of the regulations in the Law on Credit Institutions 2024.
Corporate bond issuance soars in comparison to 2023

Corporate bond issuance soars in comparison to 2023

VCN - According to the Ministry of Finance, from the beginning of the year to June 21, 2024, 41 enterprises have issued private corporate bonds with a total value of VND 110.2 trillion.
Read More

Your care

Latest Most read
Proposal to increase Special Consumption Tax on tobacco products

Proposal to increase Special Consumption Tax on tobacco products

According to experts, there cannot be a solution that fully ensures the benefits of both consumers, the state and businesses, but it is necessary to choose the most optimal option to achieve the initially set goals.
Savings of individual customers at banks hit record high

Savings of individual customers at banks hit record high

In spite of low interest rates, figures from the State Bank of Vietnam (SBV) released this week show deposits of individual customers increased by more than VNĐ39.7 trillion in April, to reach more than VNĐ6.7 quadrillion.
Managing fiscal policy has achieved many positive and comprehensive results

Managing fiscal policy has achieved many positive and comprehensive results

Ministry of Finance held an online conference to summarize state budget financial work in the first 6 months of the year, implementing tasks in the last 6 months of 2024.
Determine tools, policy for inflation control

Determine tools, policy for inflation control

Inflation is an issue that needs special attention, especially related to the management of monetary policy, interest rates, increasing prices of goods and services...
The impact of wage increases on inflation will not be too significant

The impact of wage increases on inflation will not be too significant

VCN - Addressing concerns related to wage and price increases, Dr. Nguyen Duc Do, Vice Director of the Institute of Economics - Finance (Finance Academy), believes there are not many factors causing sudden price surges in the last 6 months of 2024. Theref
Mobile Version