Yuanta Vietnam’s Management Board on August 13 released a decision on the distribution of 34,468,182 shares that Yuanta Securities (Hong Kong) Co Ltd and Nguyen Thi Minh Duc did not buy when the company issued shares to existing shareholders. Yuanta Securities Asia Financial Services Ltd bought the shares.

If the plan gets approval from the State Securities Commission, Yuanta Vietnam would complete the charter capital increase campaign by VND700 billion to VND1 trillion.

There are 17 securities companies which have charter capital of VND1 trillion or more, including SBS which has large charter capital but low stockholder equity because of a loss.

Once the capital increase plan wraps up, Yuanta Vietnam will meet the requirements to provide securities derivatives services.

Raising the charter capital by three times, Yuanta Vietnam is still not the securities company with the fastest capital increase. The position belongs to Mirae Asset Vietnam (MASVN).

In 2017, MASVN successfully increased its capital from VND700 billion to VND2 trillion, becoming the fourth largest securities company in Vietnam, after the Saigon Securities Incorporated SSI (VND5 trillion), VN Direct (VND2.204 trillion) and Agriseco (VND2.12 trillion).

Most recently, Mirae Asset Securities Ltd (Hong Kong), the owner of MASVN, has approved the plan to continue increasing the charter capital by VND2.3 trillion to VND4.3 trillion.

Once fulfilling the plan, MASVN would be second to SSI in terms of charter capital.

KIS Vietnam has also successfully raised the charter capital by VND784 billion to VND1.897 trillion. 

In late 2017, Shinhan Vietnam raised its capital from VND666.6 billion to VND812 billion, while KB Vietnam, a newcomer among foreign securities companies, has shown its plan to raise capital to VND1 trillion in the time to come.

Meanwhile, Vietnamese securities companies have been moving slowly ahead with their capital increase plans. SHS, for example, in 2017 raised capital from VND1 trillion to VND1.053 trillion, while the second phase of the plan still has not been implemented.

Analysts say that foreign securities companies nurture ambitious plans when they raise their charter capital. 

Within a short time, Mirae Asset Vietnam increased the size of lending for margin trading to VND1.835 trillion by June 30, 2018.

To date, the brokerage market share is still controlled by Vietnamese, not foreign securities companies. The biggest advantage of Vietnamese securities companies is the deep understanding about the domestic market.

However, experts say that foreign companies with huge charter capital will be tough rivals in the market.

US$1=VND22,000

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Mai Nam