VietNamNet Bridge - The technical breakdown at HOSE (HCMC Stock Exchange) on January 22 causing a 2-day interruption is estimated to have caused a loss of hundreds of billions of dong. 

The crash was confirmed by HOSE late that day and it closed the next day. It reopened on January 25.

An expert estimated that the loss caused by the incident may be up to VND100 billion. With the trading volume of VND10 billion a day and the average transaction fee of 0.2 percent, securities companies incurred a loss of VND20 billion a day. The tax amount was up to VND10 billion a day.

An expert estimated that the loss caused by the incident may be up to VND100 billion. With the trading volume of VND10 billion a day and the average transaction fee of 0.2 percent, securities companies incurred a loss of VND20 billion a day. The tax amount was up to VND10 billion a day.

As for securities investors, the biggest loss was the interest they had to pay for margin loans. With the total value of tens of trillions of dong, the amount of money investors had to pay was around VND15 billion a day.

The crash also caused a loss of confidence as well as investment opportunities.

In May 2008 problems led to closure for three days.

Do Tat Thanh, an investor on FPTS trading floor, said many investors lost the opportunity in the last order matching session at ATC (at the closing) period on January 22 because all orders were canceled. 

The value of the transactions has not been revealed. However, Thanh said in general, the session usually makes up 10-15 percent, sometimes 40 percent of total value of the trading session, or VND1-4 trillion.

“The market is scorching hot with big transactions. Many investors even borrow money to surf for investment and they surely incurred big loss because of the 2-day interruption,” he commented.

A securities expert in HCMC commented that the stock exchange closure will affect all the members of the market. In principle, investors have the right to sue the institution which runs the stock exchange.


Lawyer Nguyen The Truyen, director of Thien Thanh Law Firm and Lawyer Truong Thanh Duc from Basico, agree that investors have the right to sue HOSE if they can prove that losses incurred because of the crash.

To date, no securities company or investor has shown the intention to sue HOSE. A representative of a securities company said the loss is huge if counting the opportunity cost. 

“Anyway, securities companies witnessed the shutdown several times already and it is not too surprising,” he said.

He believes that foreign investment funds have also been affected. “However, they have experience in making investment in Vietnam. What worries them more is policy,” he added.

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