Vietnam's stock market has become attractive for foreign finance groups

As the status is upgrading from frontier to emerging, Vietnam’s stock market has become attractive for foreign finance groups, who have increased their presence by pouring trillions of dong into securities.

Mirae Asset, Maybank Kim Eng, KIS Vietnam, KB Vietnam and Yuanta are the best known foreign invested securities companies. With powerful financial capability and  clients from holding companies, they have geared up for the race in the market.

Mirae Asset, one of the first 100 percent foreign owned securities companies in Vietnam, is listed among Q2’s 10 companies with the biggest market share on the HCMC Stock Exchange.

Mirae Asset has increased charter capital in the last three years. Its capital has increased by 14 times with the support of the holding company Mirae Asset Wealth Management, from VND300 billion to VND700 billion in 2016, to VND2 trillion in 2017 and VND4.3 trillion in mid-2018.

Other foreign owned securities companies have also increased their capital. 

KIS Vietnam completed the increase of capital to VND1.9 trillion late last year, while Maybank Kim Eng was to VND1.056 trillion. 

The remaining two companies, KB Vietnam and Yuanta, which had charter capital of VND300 billion as of late 2017, have approval to raise capital to VND1.68 and VND1 trillion, respectively.

The capital increase still has not shown an impact on business results. Instead, it allows companies to be eligible to provide other kinds of services.

KIS Vietnam and Mirae Asset, after the capital increase, have officially become two of 12 members of the derivative market on HNX bourse. Mirae Asset has for the first time found its name in top 10 companies in terms of brokerage market share after raising its capital to VND4.3 trillion.

SSI, the securities company with the highest charter capital in the market, over VND5 trillion, has been recognized as holding the biggest brokerage market share for the 19th consecutive time. A representative of the company admitted that Vietnamese owned securities companies are now feeling pressure from the expansion of foreign owned companies.

SSI’s Nguyen Duy Linh commented that an attractive market like Vietnam will undoubtedly lure foreign institutions. However, domestic companies will bear pressure from the competition.

In the list of top 10 securities companies with biggest brokerage market share in the third quarter, there are three familiar names – SSI, HCMC Securities (HSC) and Ban Viet (VCSC). The 10 top companies alone hold 67.3 percent of market share.

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