Securities Marketin Viet Nam

Visiting Fellow: Tran Phuong QuynhState Securities Commission of Vietnam

Tokyo, February 2020

Outline

1. Introduction of SSC

2. Overview of Securities Market in Viet Nam

01 02 03

1. Introduction of SSC: FUNCTIONS

MINISTRY OF FINANCE

STATE SECURITIES COMMISSION

ADVISE AND ASSIST THE MINISTER IN THE STATE MANAGEMENT OF SECURITIES AND SECURITIES MARKET

01MANAGE AND SUPERVISE SECURITIES ACTIVITIES AND SECURITIES MARKET

02MANAGE SERVICE ACTIVITIES IN THE FIELD OF SECURITIES AND SECURITIES MARKET

03

Introduction of SSC: Organization StructureChairman

Vice Chairmen

Legal Affairs Department Securities Market Development Department

Securities Public Offering Management Department Public Company Surveillance Department

Securities Business Management Department Fund Managers and Securities Investment Funds Management Department

Securities Market Surveillance Department International Cooperation Department

Human Resources Department Accounting and Administration Department

SSC’s Office Inspectorate

Information Technology Department Securities Research and Training Center

Securities Review

2. OVERVIEW OF SECURITIES MARKET IN

VIET NAM

Establish: 1998 Market segments: Equity, Bond, Derivatives

Number of listed stocks & fund certificates: 749Number of registered stocks: 856Number of listed bonds: 519Derivatives: 02 (VN30 Index Futures, 5-year Gov. Bond Futures)

Number of securities firms: 83 Fund management companies: 45

0%

23%

45%

68%

90%

113%

'-

50.0

100.0

150.0

200.0

250.0

300.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

USD

bill

ion

Market capitalization and %GDP

Market capitalization %GDP

2019: Market capitalization is about 240 billion USD, 90% GDP of Vietnam.

0

75

150

225

300

0.

250.

500.

750.

1000.

1250.

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

USD

mill

ion

Poin

t

Stock Index and Average trading value from 2000 to 31/12/2019

Average trading value VN-INDEX

HNX_INDEX

31/12/2019:

- VN-Index: 960.99 points

- HNX-Index: 102.51 points

2019:

Average trading: 264 million USD

Corporate Bond Market

2019:

- Market size: 12 billion

USD, 11,3% GDP

1133.62266.8 2309.8

1842.4

4196.34971.9

9668.2

11343.8

1.95%2.65% 2.50%

3.40%

5.27%

6.19%

8.57%

11.30%

0.00%

2.50%

5.00%

7.50%

10.00%

12.50%

'-

20,000

2012 2013 2014 2015 2016 2017 2018 2019

Mill

ion

USD

Market size and issuance volume

Private placement inssuance Public offering issuance Market size (% GDP)

• G-Bonds Futures• Covered Warrant

• Launching the Corporate GovernanceCodes

• New Securities Law (12/2019)

• 2 Schemes:- Restructuring the securities market to 2020 & orientation to 2025 - Establishment of Vietnam Stock Exchange Market

structureLegal

Framework

New Products

Corporate Governance

The Agreements:

EU-Vietnam Free Trade Agreement

Investment Protection Agreement (EU-VN)

Unpredictable fluctuations of the world economy and politics:

US – China trade war

The global economy slowdown

Geo-political tensions

The possibility of a no-deal Brexit

1. Developing the guiding documents of Securities Law 2019

2. Promoting the process of equitization and divestment of SOEs (State-owned enterprises) associated with the listing and registration for trading

3. Establishing Vietnam Stock Exchange

4. Upgrading to emerging market

5. Developing the corporate bond market

6. Restructuring securities business organizations

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