The stock market in Vietnam witnessed a strong recovery this year withthe benchmark indices, market capitalisation and the involvement offoreign capital soaring over last year, according to the StateSecurities Commission.
Also, the forecasts ofeconomic indicators for next year were also pointing to a continuingrecovery of the stock market. In a review of the stock market in 2013,the 10 most significant events were selected out of 15 nominations bythe Club of Stock Journalists.
1. Vietnam stock market strongly recovers
According to statistics of the State Securities Commission, theVN-Index increased by 22 per cent, while the HNX-Index was 13 percenthigher than at the end of 2012, helping Vietnam to be among thosecountries recording the fastest pace of recovery.
The market capitalisation reached 964 trillion VND (45.9 billion USD), arise of 199 trillion VND (9.4 billion USD) over the end of 2012,equivalent to 31 percent of the country' gross domestic product (GDP).
Also, investors' accounts reached 1.27 million.Individual foreign investors' accounts soared 55 percent this year,although capital outflow was previously forecast.
2. Landmark merger of two securities firms
On December 12, the State Securities Commission recognised the mergerof MB Securities and VIT Securities to form MB Securities.
This was the first-ever merger of securities firms in the Vietnamstock market – a landmark in the effort of restructuring securitiescompanies.
The restructuring was enhanced during2013 with a series of securities companies and fund management companiesclosing their operations, having their licences revoked or being placedunder special control.
3. Punishment for slow listing
Decree 108/2013/ND-CP, which came into force on November 15, increasedpunishments for violations of the law while working in the securitiessector.
Notably, the decree regulated that joint stockcompanies must be listed on stock exchanges within one year afterbeginning to sell shares to the public.
This regulation aimed to prevent joint stock companies from delaying their being listed.
4. Extension of trading hours on both national stock exchanges
The trading hours on both national stock exchanges were extended by 45minutes to 3pm. The extension aimed to improve market liquidity, aswell as luring investors.
Additionally, manytechnical market-support solutions were successfully applied in 2013,such as improvements in transaction mechanisms and reductions in stockdeposit fees.
5. Sourcing foundation of open-ended funds
The foundation of open-ended funds rapidly boomed in 2013. Many fundswere shifted from close-ended to open-ended and many funds were newlyfounded to specialise in investing in bonds and stocks.
As of the end of 2013, the State Securities Commission granted foundation licences for 10 open-ended funds.
6. Sets of benchmark indices completed
In 2013, sets of benchmark indices, tracking the top 30, 70 and 100largest shares, were completed, along with indices for specific sectors.
The Hanoi Stock Exchange officially applied thesectorial benchmark indices in December for financial, construction andindustrial sectors.
The sectorial benchmark indices also laid the groundwork for the development of derivatives products.
7. Record growth of the bond market
The bond market in Vietnam witnessed record growth in 2013, increasing90 percent over 2012, with average trading value reaching 1.257trillion VND (59.85 million USD) per session.
Thebond market set itself an effective capital raising and allocatingchannel for the economy amid narrow credit growth in the banking system.
8. Record number of stocks delisted
A record 37 stocks were delisted from exchanges this year, compared to22 delisted stocks in 2012, after merging and restructuring, orreporting losses or violating regulations about publishing information.
Meanwhile, the number of companies which were listedon exchanges in 2013 was only 13, lower than the 25 new listings in2012.
9. Transparency marked
TheHanoi Stock Exchange this year began marking the transparency ofcompanies annually, based on criteria consistent with internationalstandards.
The marking was expected to help listed companies improve the quality of their management.
10. Guides on criminally handling of violations raised for the first time
A circular on handling violations in tax, financial, accounting andsecurities sectors, which came into force on August 15, increasedcriminal punishments for the first time for three violations in thesecurities sectors.
Those violations includedpurposely distorting information in stock operations, using internalinformation for stock transactions, and manipulating stock prices.
Previously, all violations in the stock sectors were handled byadministrative measures. With the circular, the boundary betweenadministrative and criminal punishments became more transparent.-VNA
Also, the forecasts ofeconomic indicators for next year were also pointing to a continuingrecovery of the stock market. In a review of the stock market in 2013,the 10 most significant events were selected out of 15 nominations bythe Club of Stock Journalists.
1. Vietnam stock market strongly recovers
According to statistics of the State Securities Commission, theVN-Index increased by 22 per cent, while the HNX-Index was 13 percenthigher than at the end of 2012, helping Vietnam to be among thosecountries recording the fastest pace of recovery.
The market capitalisation reached 964 trillion VND (45.9 billion USD), arise of 199 trillion VND (9.4 billion USD) over the end of 2012,equivalent to 31 percent of the country' gross domestic product (GDP).
Also, investors' accounts reached 1.27 million.Individual foreign investors' accounts soared 55 percent this year,although capital outflow was previously forecast.
2. Landmark merger of two securities firms
On December 12, the State Securities Commission recognised the mergerof MB Securities and VIT Securities to form MB Securities.
This was the first-ever merger of securities firms in the Vietnamstock market – a landmark in the effort of restructuring securitiescompanies.
The restructuring was enhanced during2013 with a series of securities companies and fund management companiesclosing their operations, having their licences revoked or being placedunder special control.
3. Punishment for slow listing
Decree 108/2013/ND-CP, which came into force on November 15, increasedpunishments for violations of the law while working in the securitiessector.
Notably, the decree regulated that joint stockcompanies must be listed on stock exchanges within one year afterbeginning to sell shares to the public.
This regulation aimed to prevent joint stock companies from delaying their being listed.
4. Extension of trading hours on both national stock exchanges
The trading hours on both national stock exchanges were extended by 45minutes to 3pm. The extension aimed to improve market liquidity, aswell as luring investors.
Additionally, manytechnical market-support solutions were successfully applied in 2013,such as improvements in transaction mechanisms and reductions in stockdeposit fees.
5. Sourcing foundation of open-ended funds
The foundation of open-ended funds rapidly boomed in 2013. Many fundswere shifted from close-ended to open-ended and many funds were newlyfounded to specialise in investing in bonds and stocks.
As of the end of 2013, the State Securities Commission granted foundation licences for 10 open-ended funds.
6. Sets of benchmark indices completed
In 2013, sets of benchmark indices, tracking the top 30, 70 and 100largest shares, were completed, along with indices for specific sectors.
The Hanoi Stock Exchange officially applied thesectorial benchmark indices in December for financial, construction andindustrial sectors.
The sectorial benchmark indices also laid the groundwork for the development of derivatives products.
7. Record growth of the bond market
The bond market in Vietnam witnessed record growth in 2013, increasing90 percent over 2012, with average trading value reaching 1.257trillion VND (59.85 million USD) per session.
Thebond market set itself an effective capital raising and allocatingchannel for the economy amid narrow credit growth in the banking system.
8. Record number of stocks delisted
A record 37 stocks were delisted from exchanges this year, compared to22 delisted stocks in 2012, after merging and restructuring, orreporting losses or violating regulations about publishing information.
Meanwhile, the number of companies which were listedon exchanges in 2013 was only 13, lower than the 25 new listings in2012.
9. Transparency marked
TheHanoi Stock Exchange this year began marking the transparency ofcompanies annually, based on criteria consistent with internationalstandards.
The marking was expected to help listed companies improve the quality of their management.
10. Guides on criminally handling of violations raised for the first time
A circular on handling violations in tax, financial, accounting andsecurities sectors, which came into force on August 15, increasedcriminal punishments for the first time for three violations in thesecurities sectors.
Those violations includedpurposely distorting information in stock operations, using internalinformation for stock transactions, and manipulating stock prices.
Previously, all violations in the stock sectors were handled byadministrative measures. With the circular, the boundary betweenadministrative and criminal punishments became more transparent.-VNA
