LOGO

LOGO

VIETNAM STOCK MARKET

GROUP 2 1, DANG QUANG BIEN2, NGUYEN MANH TUAN 3, NGUYEN TUAN ANH4, TRAN HOANG MAI5, DUONG QUYNH TRANG

TUTOR : BUI THAI QUYEN

HANOI UNIVERSITYFACULTY OF MANAGEMENT AND TOURISM

Contents

OVERVIEW

PROBLEMS & SOLUTIONS

CONCLUSION

7/1998, Vietnamese government issued resolution No 48/CP of establishing stock market.

7/2000, Vietnam stock market started operating with the born of HOSTC and upgraded to HOSE in 2007.

2005, HASTC operated officially and changed to HNX in 2009.

2006 - 2007, the explosion of Vietnam stock market.

2008 to now, the adjustment period of Vietnam stock market.

( Source : http://www.ssc.gov.vn )

OVERVIEW

Development periods

OVERVIEW

509 companies listed on stock exchanges with total market capitalization of hundreds of thousand billion VNĐ

Hundreds of security companies, investment organizations and approximately 800,000 investors joining Vietnam stock market.

( Source : http://wwww.infotv.vn/chung-khoan/tin-tuc/42074-nam-2009-co-hon-800000-tai-khoan-chung-khoan-giao-dich

)

Present scale

OVERVIEW

Structure

Vietnam Stock

Market

Secondary Market

Primary Market

Stock Exchange

OTC Trading Market

HOSE

HNX UpCom

PROBLEMS & SOLUTIONS

The transparency of information in Vietnam stock market

Many listing companies publishing information isn’t timely, even still existing the phenomenon of masked information.

difficult for investors in making investment decisions.

bad influences to the investors’ belief in the management of the state and future of the stock market.

In 2009, HNX found and punished 38 companies and 155 major stockholders violating information announcement.

( source : http://en.infotv.vn/chung-khoan/tin-tuc/40652-17000-truong-hop-cung-mua-cung-ban-mot-ck-trong-phien-tren-hnx )

PROBLEMS & SOLUTIONS

Solutions : Propagandize benefits of information transparency

for listing companies. Strengthen the state management for listing

companies in publishing information (add articles into securities law).

Increase levels of Punishing for cases of violation.

PROBLEMS & SOLUTIONS

Labor in Vietnam stock market : lack and weakness “Labor thirst”, especially, professional labor : a big difficulty

for many security companies. The stock staffs still lack of management skills, professional

and experience Only 2744 staffs have certificate of stock business. ( Source : http://wwww.infotv.vn/chung-khoan/tin-tuc/42074-nam-2009-co-hon-800000-tai-

khoan-chung-khoan-giao-dich )

Security training systems don’t still satisfy the market demand Only 1/3 graduate students satisfy the requirement, the rest

needs to be retrained. ( source : http://www.vinasme.com.vn/nd5/detail/tin-kinh-te-tong-hop/tai-chinh-chung-

khoan/nhan-luc-chung-khoan-trong-con-thu-lua/1354.003016.html )

PROBLEMS & SOLUTIONS

Solutions : Specific strategies & plans to develop stock labor

source. Expand stock training scale, diversify training

channels & method. Control and enhance the training quality of centers,

universities...(improve facilities, update training programs …)

Encourage & attract financial experts coming to teach and work in Vietnam.

PROBLEMS & SOLUTIONS

Investment according to “mob psychology”

Most of Vietnamese investors still lack knowledge and experience, plus lack of information They….

Usually invest according to feeling and crowd

Are influenced easily by hearsays and reports of foreign financial organizations.

PROBLEMS & SOLUTIONS

VN Index & Report of Financial Organizations

Sources : http://www.fpts.com.vn

PROBLEMS & SOLUTIONS

HNX Index & Report of Financial Organizations

Sources : http://www.fpts.com.vn

PROBLEMS & SOLUTIONS

The effect of Investment following “low-quality crowd”

Make the development of stock market deviate from its laws.

Reduce the attractiveness of Vietnam stock market to foreign investors

PROBLEMS & SOLUTIONS

Solutions : Equip knowledge & experience for investors. Enhance the transparency of information in the

stock market Support information for investors.

Make independent research on Vietnam stock market orient for investors.

Encourage investors to join stock investment through professional funds.

Conclusion

Compared with many large and long–standing stock markets, Vietnam stock market is still young and problems above that it faces is inevitable.

However, in long-term, Vietnam stock market is a full-potential place to invest.

LOGO

LOGO

HANOI UNIVERSITYFACULTY OF MANAGEMENT AND TOURISM