How to invest in Vietnam’s stock market

In 2019, Vietnam’s economic freedom score is 55.3, making its economy the 128th freest in the 2019 Index. Its overall score has increased by 2.2 points, with a sharp increase in fiscal health and higher scores for investment freedom and judicial effectiveness outpacing a decline in monetary freedom. 

This article instructs step by step for foreign investors who want to invest in Vietnam’s stock market.

Step 1: Choose a brokerage securities firm for opening a trading securities account

• At the end of 2017, Vietnam’s stock market has 77 securities companies. So which company the investor should choose among a bunch of companies? The article below may help you make your decision easier.
  Which’s brokerage securities are the best for foreign investors.
• When you decide to invest, you have to choose a brokerage securities companies for opening a stock account. In general, foreign investors only need a valid passport when opening the account at HSC Inc.
  How to open trading securities account in Vietnam’s stock market.
• We recommend you understand some important points before signing up for service contracts with any securities companies.
  Things foreign investors need to know when opening a stock account.

We also recommend you should go to the securities company with someone who speaks your language. They can help you understand the contract and communicate with the staff. Contact us, we would like to support you.

Step 2: Understand the regulation of the market

Before you begin to play a game you have to learn the “house rule” first, and then you have to play better than anyone else.

• Vietnam currently has two stock exchanges, the Ho Chi Minh City Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX), though the government has expressed an intention to merge them in the near future.
  HSX trading regulation
  HNX trading regulation
  Trading guidances for the derivatives market in Vietnam
• After September 1st, 2015,  public companies were not allowed to raise its foreign ownership ratio to over 49%. But now foreign investors can own 100% stock of a public company if the public company doesn’t operate in businesses relating to restricted or conditional business lines for foreign investment.
  Legal Guide to Investment in Vietnam,

Step 3: Understand the features of the Vietnamese stock market.
You may have experience in investing in the stock markets in the US, HongKong, or Indian stock market. Each market, however, has some distinct features, and there is no better way to savvy the market than to experience it yourself. This is not only due to the different conditional economy and regulations but also because of the different business cultures. We will introduce to you some tips to help you get used to it easier:

• First, the investors should know the way how to approach the information in the stock market
• Some distinct features of the market Things you need to know about the Vietnamese stock market
• Reports overview, analysis of the market.
• Daily market watch: If the investor does not have enough time to follow the market during the trading hours. The investor can take a look at the daily market watch article for getting a summary of what happened and news about listed corporates.
• Using investment consulting services.

Tony Bui