Vietnam Stock marker officially transact for the first time in July 28, 2000. Ho Chi Minh City Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) are the stock trading center in Vietnam.
As of 31 December 2017, there were 344 companies and 384 companies listed on HOSE and HNX respectively.
The year 2017 saw the Vietnam Securities Market demonstrating remarkable development, with the market remained one of the fastest growing financial markets in the world. The combined market capitalization of Ho Chi Minh Stock Exchange and the Hanoi Stock Exchange (with UpCom included) totaled VND 3,515 trillion, equivalent to 74.6% of GDP. This figure surpassed the target (market cap to GDP ratio) set for 2020 by the Government. The stock market has strongly developed and become a long-term and important capital mobilization channel for the economy.
The Government has planned to merge HOSE and HNX to form a single entity called the Vietnam Stock Exchange, which will be headquartered in Hanoi. After the merger, stocks and corporate bonds would be listed on HOSE while Hanoi exchange would handle derivatives and Government bond markets. This restructuration would take 2-5 years to be completed.
According to MSCI, Vietnam’s stock market is a frontier market in 2018 and could be potentially reclassified as an emerging market in 2019. The progress of Vietnamese stock market would largely depend on the improvement of eight indicators: foreign ownership limits, foreign room levels, equal rights for foreign investors, foreign exchange market liberalisation levels, information and market regulation English disclosure, clearing and settlement, and transferability.
These days, foreign investors are allowed owning up to 100 % of a listed enterprise if that firm does not operate in the sectors involved in national security and safety such as banking, property and transportation. In such cases, foreign investors can have a maximum of 49 % ownership. For commercial banks, the foreign ownership is limited at 30 %.