VIETNAM STOCK

MARKET

JACK – MA1N0214

Vietnam Stock Market Structure

Vietnam

Stock Market

Primary

Market

Over The Counter Market

(OTC)

UPCOM (unlisted public

company market)

Secondary Market

Official Market

Ho Chi Minh Stock Exchange

(HOSE)

Ha Noi

Stock Exchange

(HNX)

General Information

Trading venue:• Trading floor: take place transactions of buying and selling stocks• 2 trading venues:

- Ho Chi Minh Stock Exchange (HOSE), established in 2000

- Ha Noi Stock Exchange (HNX), established in 2005

Trading Time: 2 sessions• Morning session: 9am to 11.30am• Afternoon session: 1pm to 3pm

Market Indices:• Vn-Index, Hnx-Index, Upcom-Index• Vn30-Index, Hnx30-Index

General Information (cont.) As of 2012, 714 companies is listed in HOSE and HNX while only 183

listed-companies in both markets in 2006.

The HOSE and HNX trade only ordinary shares, bonds and fund certificates. No complex securities that are traded on these exchanges such as futures, derivatives and so on.

Par value per share:• 10.000 VND (0.47 USD)

Important rules:• T+3 • Restriction on short-selling• 5% limit

Listing rules

HOSE:The applicant company must have a minimum book value of 120 billion VND (approximately 5.7 million USD) in paid-up charter capital.The applicant company must have been profitable for the last two consecutive years and there must not be any accumulated losses up to the year of listing.

HNX:The applicant company must have a minimum book value of 30 billion VND (approximately 1.4 million USD) in paid-up charter capital.The applicant company must have been profitable for the year proceeding the listing application.

Vietnam stock market statistics

Market Capitalization (mil USD)

% of GDP Inflation

2003 154 0.39 3.2

2007 19,541 27.52 8.3

2008 9,589 10.53 23.1

2012 32,933 26 6.8

• From 2000 to 2004, Vietnam Stock Market was in its infancy. Therefore, the market capitalization was only 154 mil USD in 2003 with 24 listed companies.

• In the next period, more and more companies were listed and also people invested more in the stock exchange. As a result, the market capitalization reached 19,541 mil USD and VN-Index (HOSE) was traded in 900-1100 range in 2007.

• However, the economic recession in 2008 brought the market capitalization of Vietnam to 9,589 mil USD.

• Nowadays, Vietnam stock market capitalization reached 32, 933 mil USD with 714 listed companies

Historical Movement of The VN-INDEX

Accumulation period

Public Participation Period

Distribution period

Recovery/ New Cycle

How to trade?

Strengths and Weaknesses

Strengths:• Growing very fast because this market is

new.• Emerging market• Government tried to take actions to keep a

stable economy and stable stock market as well.

Weaknesses:• Lack of rules and regulations• Weak infrastructure (auditing services)• Some investors are lack of investment

knowledge