How2invest in the Vietnam stock market? The Vietnam stock market, while still emerging, has been grabbing the attention of many international investors. The main reasons for this are the country’s consistent economic growth, more integration into the global economy, and the young population. Here’s an overview of the stock market in Vietnam:
If we go a little back into history, Vietnam opened its first national stock exchange in the year 2000. The name of the stock exchange is Ho Chi Minh City Stock Exchange (HOSE). Then in 2005, Hanoi Stock Exchange (HNX) was started.
How to Invest in Vietnam Stock Market?
Investing in the stock market of Vietnam can be a very exciting opportunity due to its rapid economic growth. If you are thinking about investing, then here is a step-by-step guide tutorial on where can I buy the stocks, how to create an investment account on the stock exchange, and key points to consider to invest.
Investors can buy shares or stocks from authorized exchanges. There are two exchanges in Vietnam:
- Ho Chi Minh City Stock Exchange (HOSE)
- Hanoi Stock Exchange (HNX)
HOSE is popular for large-cap companies. And, HNX is good for small and medium-cap companies. HNX allows bond trading as well.
Every country’s stock market has an index. In Vietnam, VN-Index is the trademark index of the HOSE. This index tracks the performance of large-cap companies.
Vietnam also has a regulatory body like every other country. It is named State Securities Commission (SSC).
How to purchase stocks in Vietnam?
If you are a resident of Vietnam, you can purchase stocks by creating an investment account with any brokerage firm. There are many firms that offer securities. But here are the 4 reputable brokerage firms in Vietnam:
- SSI (Saigon Securities Incorporated)
- VNDirect Securities Corporation
- HSC (Ho Chi Minh City Securities Corporation)
- VCSC (Viet Capital Securities Company)
You must create an investment account in any of the above firms to start purchasing stocks or shares. Let’s see how to create an account.
How to open a trading account with a brokerage firm?
Creating an investment is a straightforward process. However, you need a bank account to create an investment account. If you don’t have one, you must go to your local bank and create one now. Your bank account and investment account will be linked to the transfer of the funds. Now we will see the steps to open a trading account.
You must prepare all the necessary documents before visiting securities firms. You need the following documents:
- A copy of your identification card or passport
- Proof of your address such as a utility bill.
- Some firms may ask you to submit additional documents like bank statements.
Once you have all these documents with you, you can try to open the trading account:
- Go to any brokerage firm office and get the application form.
- Fill out the application form given to you.
- You have to fill in your personal and financial details in this form.
- Once you submitted all the necessary information and the required documents, the brokerage firm will start the verification. The application processing can take a few days to a couple of weeks.
- If they need any additional details for verification, you will have to provide them to complete verification.
They will inform you once the application is processed and your trading account is opened. Now, you can add funds to your trading account to start trading.
Keep in mind that you must be up to date with any kind of changes in regulations or procedures related to trading accounts in Vietnam. These things can change over time. f you’re unfamiliar with the Vietnamese stock market, consider consulting with financial professionals or attending investment seminars to gain more knowledge.