25 years of developing goods, improving the quality of organizations listed on the Ho Chi Minh City Stock Exchange

On July 28, 2000, the Ho Chi Minh City Securities Trading Center (the predecessor of the Ho Chi Minh City Stock Exchange) officially came into operation with the first two stock codes REE and SAM.

After 25 years of formation and development, Ho Chi Minh City Stock Exchange (HOSE) has become a prestigious listing floor, where many of the highest quality listed enterprises in the Vietnamese stock market are concentrated.

Listing on HOSE helps businesses affirm their reputation, brand, transparency in operations, improve competitiveness and expand access to domestic and foreign capital sources.

HOSE - A gathering place for large-scale listed enterprises with diverse industries

From two stock codes on the floor on the first day, by the end of April 2025, HOSE had 391 stock codes, 21 fund certificate codes (including 17 ETF fund certificate codes) and 201 covered warrant codes, with 178.4 billion securities, equivalent to a stock capitalization value of VND 5.12 million billion, accounting for nearly 94% of the total capitalization value of listed stocks in the whole market, equivalent to 44.5% of Vietnam's GDP in 2024.

Enterprises listed on HOSE are very diverse in terms of industry and scale, concentrating on large, leading enterprises with stable business operations.

Currently, HOSE is classified according to GICS standards with 11 industry groups. As of the end of April 2025, the 4 industries with the highest proportion are Finance, Real Estate, Essential Consumer Goods and Industry, accounting for more than 75% of the total market capitalization value.

The Finance sector accounts for the largest proportion with nearly VND2.28 trillion (accounting for 44.5% of the total capitalization). There are 18 large banks listed on HOSE with a capitalization value of VND2.04 trillion (accounting for 40% of the total capitalization value). There are more than 40 enterprises listed on HOSE with a capitalization value of more than USD1 billion.

On HOSE, nearly 50% of listed enterprises are equitized state-owned enterprises. Notably, 45/100 largest private enterprises in Vietnam in 2024 (according to VNR statistics) and 24/30 largest private enterprises in Vietnam in 2024 (according to Tax Department statistics) are currently listed on HOSE.

After 25 years, HOSE has affirmed its position as the first centralized stock exchange, the largest trading market in the country. Listing on HOSE is a testament to the quality of operations, meeting the highest listing conditions of the market; a declaration of information transparency, governance standards to build the image and value of enterprises in the stock market.

Dynamic and effective capital mobilization and allocation channel for the economy and promotion of equitization and restructuring

For businesses, listing on HOSE is not only a milestone to affirm their position and brand, but also opens the door to access medium and long-term capital flows. Therefore, HOSE has become the first choice of listed businesses in their capital mobilization strategy. By the end of 2024, the average total charter capital of listed businesses reached more than 4.2 trillion VND, an increase of more than 3 times compared to 2015. Within 25 years, the total value of capital mobilized through additional share issuance has exceeded 520 trillion VND, with more than 1,000 issuances with proceeds, the financial sector alone has brought in more than 230 trillion VND.

Each development period marked an explosion: from 2010-2015, when the economy restructured, the amount of mobilized capital increased more than 5 times compared to the period 2004-2009; the period 2016-2020 witnessed a series of large enterprises such as VHM, PLX, VJC, VRE and private banks (VPB, TCB, ACB) simultaneously listed on the stock exchange, creating a strong attraction for domestic and foreign capital flows. The charter capital of many companies grew significantly compared to the time of listing, typically enterprises such as VCB (74 times); HPG (48 times), VIC (47 times), CTG (44 times); REE (31 times); FPT (24 times); GMD (24 times); VNM (13.1 times).

Besides its role as a capital mobilization channel, HOSE also plays an important role in the equitization process of state-owned enterprises through auctions, initial public offerings, or private offerings to increase capital.

More than 50% of enterprises listed on HOSE are equitized state-owned enterprises, a clear demonstration of HOSE's role in equitization associated with listing, increasing the efficiency of the state capital divestment process and making information transparent according to market mechanisms.

From 2005 to present, HOSE has conducted 584 share auctions, selling more than 4,800 million shares and more than 130 million share purchase rights, thereby collecting more than VND240 trillion for owners; of which, there were 352 initial public offerings for equitized state-owned enterprises, collecting more than VND74.8 trillion for the state.

Some typical state capital divestments and share auctions such as SAB (over 115 trillion VND), VCB (over 10 trillion VND), VNM (over 9.5 trillion VND) not only demonstrate financial efficiency but are also a turning point in improving governance capacity and information transparency.

HOSE has gradually built trust in the market, reflecting the market's trust in reputable and effective enterprises. Equitization combined with listing has created opportunities for many state-owned enterprises to restructure their operations, transform strongly, attract strategic investors, apply international governance practices and move towards a more modern and effective operating model.

Improving the quality of listed goods towards developing a fair, transparent and sustainable stock market

On the 25-year journey of development, HOSE has created a foundation for listed enterprises to develop significantly in both scale and quality, maintaining sustainable growth momentum. Data from 2015-2024 shows that the revenue and profit of listed enterprises tend to improve significantly over time. The rate of enterprises reporting profits remains stable, reflecting the efficiency of capital use after listing as well as positive changes in governance and development strategy.

Becoming a listed company not only opens up growth opportunities, but also comes with stricter requirements on transparency and governance. From information disclosure, internal management to shareholder responsibility, businesses are forced to upgrade comprehensively to meet the increasingly high standards of supervision from management agencies.

As the frontline in supervision, HOSE continuously improves its mechanism towards being proactive, transparent and consistent. Violations in information disclosure are handled seriously and promptly, contributing to improving market discipline.

Over the past 10 years, the number of enterprises violating information disclosure has decreased by nearly 80%; from 2022 to now, 13 enterprises have been delisted due to serious violations of information disclosure, a number that shows that the compliance level is clearly improving, contributing to improving the quality of listed goods.

Along with supervision, HOSE also promotes activities to support enterprises in fully and effectively disclosing information. The implementation of the electronic document management system (ECM) helps eliminate paperwork, save time and improve the efficiency of managing disclosure records.

Training programs, legal seminars and specialized consulting are organized regularly to support businesses in understanding regulations and flexibly handling practical situations. HOSE also encourages businesses to strengthen Investor Relations (IR) activities, improving their ability to connect with the investing public.

A notable step forward from 2025 is that 100% of enterprises on HOSE have made periodic information disclosure in English, of which more than 98% have complied with the deadlines for financial reports and shareholder meeting documents. This is an important foundation to help increase foreign investors' access and improve market position.

Associated with the goal of improving governance quality, the Vietnam Listed Company Awards is one of the highlights throughout the development journey.

Not only stopping at evaluating annual reports, the Listed Enterprise Awards also act as an objective measure of governance quality from board structure, financial transparency, to sustainable development strategy.

Over the years, participating businesses have continuously improved the quality of their sustainability reporting, with many adopting the GRI guidelines with well-structured and highly reliable reports.

Although the average corporate governance score of the whole market is currently only around 50%, the corporate governance scoring criteria in the past 2 years of the Listed Enterprise Awards have been built closer to international practices, the proportion of good practice scores in corporate governance has reached 40%, the proportion of compliance scores has decreased to 60%.

The results of the poll show that large-cap companies often achieve outstanding scores and are contributing to shaping new standards for the market. This is a signal that the process of raising corporate governance standards is spreading in the listed business community. Corporate governance is therefore no longer just a formal compliance requirement, but is gradually becoming the core foundation in the sustainable development journey of each listed company.

Through 25 years of formation and development, accompanying the ups and downs of the market, HOSE has continuously improved and developed strongly, becoming an important place to connect capital supply and demand for the economy. Entering the "New Era", "The Era of the Vietnamese people's rise", the journey ahead will be full of challenges.

With the motto "Increasing value - Strengthening trust" , with the youthfulness of 25 years old and the achievements in recent years, HOSE needs to transform itself for a new journey, be more proactive, more professional, always receptive and accompany market members to build a transparent and sustainable Vietnamese stock market.

BAO MINH

Source: https://nhandan.vn/25-years-of-development-of-goods-increasing-quality-improvement-to-chuc-niem-yet-tren-so-giao-dich-chung-khoan-tp-ho-chi-minh-post885736.html