Vietnam Stock Exchange, including HOSE, HNX, and UPCOM, play an important role in Vietnam's economy. The role of the stock exchange is not only limited to being a place where securities transactions are carried out but also extends to many other aspects of the financial system.
1. Introduction: Vietnam Stock Exchange - A reputable and potential investment platform
Vietnam Stock Exchange is an organization that manages and operates the domestic stock market. In Vietnam, there are three stock exchanges: Ho Chi Minh City Stock Exchange (HOSE), Hanoi Stock Exchange (HNX), and UPCOM Stock Exchange. New investors, or F0 investors, can open accounts directly at securities companies through the support of staff or open accounts through financial applications integrated on smart electronic devices.
Vietnam stock exchanges including:
Ho Chi Minh City Stock Exchange (HOSE):
- Location: Located in Ho Chi Minh City.
- Date of establishment: HOSE started operating on July 20, 2000, replacing the Ho Chi Minh City Stock Exchange.
- Scale: The largest stock exchange in Vietnam, managing transactions of many large enterprises with high market capitalization.
Hanoi Stock Exchange (HNX):
- Location: Located in Hanoi city.
- Date of establishment: HNX started operating on March 3, 2005, replacing the Hanoi Stock Exchange.
- Size: One of the two largest stock exchanges in Vietnam, focusing on trading of a number of large enterprises and mainly characterized by small and medium-sized enterprises.
Upcom exchange is an abbreviation for Unlisted Public Company Market:
- Established in 2009 by Hanoi Stock Exchange.
- Size: Initially there were only 10 businesses but now there are hundreds of companies from large to small. It is a market for unlisted public companies.
- Upcom is a place where joint stock companies or limited liability companies that issue securities to the public but are not listed.
Ho Chi Minh City Stock Exchange (HOSE) is one of three stock exchanges in Vietnam.
The Vietnam stock exchange are all under the management of the Vietnam Stock Exchange. Because the stock market is where companies connect with investors. Players should learn about the structure and scale of the stock exchanges.
The stock exchange can be viewed as an “online marketplace,” where buyers and sellers meet to conduct exchange transactions. In addition, the stock exchange supports various services such as issuing and redeeming securities, performing debt operations, and paying dividends, interest, and capital to investors.
The Vietnamese stock market currently has a variety of trading products including stocks, bonds, fund certificates, derivative products, and investment cooperation products. Choosing the HoSE, HNX, or UPCOM floor to conduct transactions requires basic knowledge and affects the level of risk, as well as the level of transparency of the stocks traded on each floor.
2. The importance of the Vietnamese stock market to the economy
Vietnam Stock Exchange plays an important role in economic development through several important aspects:
- Stock market development: Vietnam's stock exchanges play a key role in the development of the domestic stock market. The modernization and development of exchanges such as HOSE, HNX, and UPCOM not only create a transparent and flexible trading environment but also promote development and competition in the financial system.
- Corporate Finance Support: Businesses can raise capital by issuing shares or bonds on the stock market. This helps businesses diversify their capital sources, reduce pressure from bank loans, and facilitate business expansion and investment in new projects.
- Attracting investment capital: Having a developed stock exchange helps attract investment capital from many sources, including domestic and international investors. The transparency and good liquidity of the stock market increases the confidence of investors, thereby bringing capital into the national financial system.
- Safe investment channel: The stock exchange provides a safe investment channel for investors, helping them diversify their investment portfolio and reduce risks. For those who want to participate in the financial market without taking high risks, investing in stocks can be a safe and effective choice.
In 2023, the Prime Minister rang the bell at the NASDAQ Stock Exchange.
3. Types of transactions and products on the Vietnam Stock Exchange
Vietnam Stock Exchange Diversifying your investment portfolio can be a daunting task for new investors to start learning and understanding. However, the investment products of the stock market can be grouped into three main categories: Basic securities, derivative securities and ETF certificates.
Compare the features of investment products:
| Name investment products | Share | Bonds | Futures Contract | Warrant | ETF fund certificate |
| Nature product | Investment – Holding assets as equity of the enterprise. | Investment – lending to businesses. | Speculation – Reference to VN30 index. | Speculation – Greed based on the underlying stock price. | Investment – Stock Reference base |
| Issuer | Listed company | Listed company | Stock exchange | Securities company | Fund management company |
| Level of leverage | Medium | Are not | High | Very high | Medium |
| Liquidity (popularity) | High | Short | High | Short | Short |
| Number of listed securities | According to the capital size of the enterprise | According to the capital size of the enterprise | Unlimited trading volume depends on supply and demand | The quantity issued is specified for a specific period of time. | The quantity issued is specified for a specific period of time. |
| Time of ownership | Unlimited | Maximum ownership until maturity | Maximum ownership until maturity | Maximum ownership until maturity | Unlimited |
| Payment time | After 2 working days (T+2) | After 1 working day (T+1) | Immediately (T+0) | Immediately (T+0) | After 2 working days (T+2) |
| Price volatility | Medium | Are not | Strong | Very strong | Short |
| Potential Return | Medium | Short | Big | Very large | Medium |
| 2-way trading (Both Long and Short) | Are not | Are not | Have | Are not | Are not |
| Payment risk | Bankruptcy | Bankruptcy | Bankruptcy | Issuer insolvency | Bankruptcy |
4. Conclusion: Take advantage of market opportunities with Vietnam Stock Exchange
Taking advantage of market opportunities through the Vietnam Stock Exchange is a smart strategy to increase your assets. The stock exchange is not only a place to trade but also a powerful tool to help shape and develop investors' assets.
Vietnam Stock Exchange is where the real value of a business is assessed through its stock price. This helps investors make decisions based on transparent data and information, enhancing the ability to invest effectively.
The Vietnamese stock exchange has been increasingly improving its transparency and liquidity, creating favorable conditions for investors. Trading on the exchange makes it easy for you to buy and sell securities and actively manage your investment portfolio.
The stock market is a place with high profit opportunities, especially when you have knowledge and effective investment strategies. Monitoring and analyzing the market will help you take advantage of special opportunities and favorable times. Taking advantage of investment opportunities on the Vietnam Stock Exchange is a strategy to increase and protect your assets in an increasingly complex investment environment.
Source: Onstocks
