VN100 futures will better ensure investors' hedging needs

VN100 index futures contracts will be officially traded from October 10.

Mr. Nguyen Quang Thuong, Deputy General Director of the Vietnam Stock Exchange (VNX).

Besides offering more investment products, VN100 futures contracts are expected to better support investors' portfolio risk hedging needs, thanks to their more representative nature and closer market tracking.

Mr. Nguyen Quang Thuong, Deputy General Director of the Vietnam Stock Exchange (VNX), spoke with the press about the new VN100 futures contract product.

It is known that the Vietnam Stock Exchange (VNX) is about to launch VN100 index futures contracts. Could you provide specific details on the official operation plan for this product? Why did VNX decide to launch this new product at this stage?

The VN100 futures contract has been fully tested on the new information technology system (KRX) through the coordinated efforts of the Stock Exchanges, the Vietnam Securities Depository and Clearing Corporation (VSDC), market participants, and other stakeholders. Following a request from the Vietnam Stock Exchange, the VN100 futures contract has also been approved by the State Securities Commission for launch and officially began trading on the Hanoi Stock Exchange on October 10th.

The official launch of the VN100 futures contract aims to diversify products in the derivatives market in particular and the stock market in general, in accordance with the Stock Market Development Strategy to 2030 approved by the Government . This product diversification is expected to serve both investment and risk hedging purposes for investors in the market. The new futures contract, with the VN100 index as its underlying index, is highly representative and is expected to contribute to the market's development in both scale and depth.

The VN100 futures contract is a model of the VN100 index with better representation, or in other words, better coverage and a more balanced structure. Could you share more details about the technical characteristics of this product?

Yes, the VN100 index is indeed more representative. According to statistics from September 2025, the VN100 index represents approximately 88% of the market capitalization of the VN-Index; and the trading value of stocks in the VN100 index basket compared to the VN-Index is approximately 89%.

Due to the better representation of the VN100 index in the market, the weighting of the top 10 stocks in the VN100 is significantly lower (the top 10 only represent about 51% of the market capitalization of the VN100 index basket, while the VN30 basket represents 64%). This will contribute to the greater stability of the VN100 index, making it more closely aligned with the overall market trends; at the same time, it will be less affected by strong fluctuations in some large-cap stocks.

Furthermore, the VN100 index, launched in 2014, has demonstrated stability and currently has several ETFs that track it (such as VinaCapital VN100 ETF, IPAAM VN100 ETF, etc.). These are some of the technical advantages of the underlying index of the VN100 futures contract, which was officially launched on October 10th.

As you just shared, besides increasing options for investors, VN100 index futures contracts also provide an additional tool to help investors hedge against risks. What is the basis for VN100 futures contracts to better facilitate portfolio risk hedging and support greater stability in the underlying market, sir?

In addition to providing more investment product options for the market, futures contracts on the VN100 index are also considered a good risk hedging tool for investors.

In fact, the correlation coefficient of VN100 with the VN-Index is as high as 98.6%. The VN100 index has a stronger statistical link with the market, tracking the VN-Index more closely, thereby enhancing the effectiveness of VN100 futures contracts in hedging portfolio risks, especially for large-scale portfolios heavily dependent on overall market fluctuations such as public equity funds, thus supporting a more stable and secure market operation.

Although the derivatives market has shown strong growth, it still lacks product diversification. Could you briefly outline your plans for researching and developing additional products and services for this market in the future?

The derivatives market has experienced relatively strong growth recently. The diversification of products, including derivatives, is receiving significant attention from both regulatory authorities and the market, and is being actively implemented in accordance with the approved Securities Market Development Strategy.

Regarding the derivatives market, we are focusing our research to report and propose to the regulatory authorities the implementation of products in accordance with international practices, covering a comprehensive range of essential products serving investment and risk hedging purposes, and leveraging the strengths of the newly implemented stock market information technology system.

Among these, options contracts on stock indices and on individual stocks are some of the products currently being studied by stock exchanges for feasibility before reporting to competent authorities for approval to implement them when all the necessary conditions are met.

Thank you!

Source: https://baotintuc.vn/kinh-te/hop-dong-tuong-lai-vn100-se-dam-bao-tot-hon-nhu-cau-phong-ve-cho-nha-dau-tu-20251008130958169.htm