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| Vietnam's stock market is an important medium- and long-term capital channel for the economy and businesses. Photo: Le Toan |
KRX: Opening the era of more modern and efficient trading
July 28, 2025 officially marks the 25th anniversary of the development of the Ho Chi Minh City Stock Exchange (HoSE) - formerly the Ho Chi Minh City Securities Trading Center. The opening of the first trading session is a historic moment in the opening of the Vietnamese stock market, creating an important piece in the socialist-oriented market economy and officially joining the country's innovation and development.
The important milestone that the market has recently paid attention to is the launch of the new KRX information technology system and the process of upgrading the market is getting closer. In particular, the new information technology system invested by HoSE will officially operate on May 5, 2025, expected to bring about a strong transformation for the Vietnamese stock market.
KRX can help increase transaction speed and settlement time, pave the way for new trading products, increase transparency and system security, thereby helping to enhance investor confidence, especially foreign investors, creating a foundation for the Vietnamese stock market to be included in the list of market upgrades.
After 25 years, the stock market has contributed to mobilizing millions of billions of VND for development investment, affirming its role as the "bloodline" of the modern economy and being one of the important pillars of the national financial system, alongside the banking and insurance systems.
Minister of Finance Nguyen Van Thang said that a quarter of a century, although not too long, is a journey of building and developing the Vietnamese stock market with courage and perseverance, from the beginning to the standards of a high-level market in the economy. The Vietnamese stock market has shown its role and effective contribution in each stage of the country's economic development, affirming itself as an important medium- and long-term capital channel for the economy and businesses.
“In the coming time, the role of the stock market needs to be strongly promoted, affirming more clearly in mobilizing key medium- and long-term capital resources for the economy in the context of the country entering a new development stage,” Minister Nguyen Van Thang shared.
Aiming to upgrade the market
Ms. Mai Thanh, Chairwoman of the Board of Directors of REE (one of the first two companies listed on the stock exchange) said that REE has successfully issued shares on the stock market many times and this capital has been effectively invested in energy projects, including wind and solar power plants, helping REE to rapidly expand into the renewable energy sector.
“Looking back on the 25-year journey since listing, we are proud that REE has achieved its initial goals and more - building a governance system according to international standards, maintaining its reputation with investors, partners, customers and employees. The initial concerns when listing have become advantages today,” said Ms. Mai Thanh.
Vietnam's stock market is aiming for an upgrade. This is an opportunity for the business community and investors.
Last week, REE submitted to the Prime Minister the 10 GW REE Southern Offshore Wind Power Project, with the expectation of implementation from now until 2040. The project consists of 3 phases, with a total expected output of about 34,000 GWh/year, a total investment of 35 to 40 billion USD, of which REE commits to holding 51% of counterpart capital, the remaining 49% will invite partners to participate.
REE is a pioneer in major policies such as equitization, international bond issuance, and listing on the stock market, and now continues to want to pioneer in the field of renewable energy. “Once again, REE would like to take the lead in taking on this great task. We hope that the Government will trust us with this task as before and commit to focusing all our resources - finance, people, technology - to successfully carry out the glorious responsibility assigned by the Government,” said the Chairman of the Board of Directors of REE at the event.
Milestone in building the foundation for national financial autonomy
In recent times, the Government has proposed many breakthrough policies to promote economic growth and the stock market. Of which, the two major policies are Resolution 86/NQ-CP of the Government on capital market development and Decision 1726/QD-TTg of the Prime Minister on the Strategy for Stock Market Development to 2030. In addition, two key resolutions for economic development have also been issued: Resolution 57-NQ/TW on breakthroughs in science, technology, innovation and national digital transformation and Resolution 68-NQ/TW on private economic development.
Mr. Don Lam, CEO and Founding Shareholder of VinaCapital Group, said that this is a strategic shift - from attracting foreign investment to promoting domestic resources, creating conditions for domestic enterprises to develop. Resolution 68-NQ/TW is an important milestone affirming the great potential of the private economy in leading the country's growth.
The capital market - especially the stock market - plays an extremely important role in realizing the above goal. Therefore, creating favorable conditions for the development of domestic investment funds is a key factor in effectively mobilizing domestic financial resources, gradually reducing dependence on foreign capital and moving towards the goal of sustainable national financial autonomy.
The upgrade is an important milestone, but not the final destination. According to Mr. Don Lam, the market development is aimed at the larger goal of building a foundation for the country's financial autonomy.
However, Vina Capital also believes that the market still has some limitations that need to be overcome. Since 2019, there has not been an outstanding initial public offering (IPO) deal that is enough to create a breakthrough for the market.
In the market structure, the two sectors of finance and real estate account for about 60% of capitalization. To keep up with the world development trend, the stock market needs more representative sectors that reflect the diversity of the economy such as high technology and manufacturing.
Vietnam’s stock market is at its prime for transformation, with all the same factors as neighboring countries such as South Korea, Malaysia, Thailand and Singapore, as they have broken through from a market that accounts for about 60% of GDP to 100% of GDP. “I believe Vietnam will soon approach this figure,” said Mr. Don Lam.
Although each country has different priorities and turning points, the common point that Vietnam can learn is to promote IPOs and equitization, diversify investment products. In Vietnam, individual investors account for 85% of daily transactions, while in developed countries, institutional investors play a key role. Promoting domestic institutional investors is an important factor for the sustainable development of the market, because they will be the leading force in building and deploying new financial products.
Infrastructure is also a field that the stock market can provide great support. With capital needs of up to billions of USD for road, railway, seaport, aviation, and energy projects, it is impossible to rely solely on the state budget or foreign investment. REITs - real estate investment funds that are very popular abroad - should also be considered for development in Vietnam.
- Mr. Trinh Hoai Giang, General Director of Ho Chi Minh City Securities Corporation (HSC)
Over the past 25 years, Vietnam has made a significant transformation, from a country that was almost unknown on the world map of stocks and securities, to now being considered an important market in the Southeast Asian region. In my opinion, the most important step forward is that we have formed a culture and a corporate governance mechanism, helping businesses become increasingly strong and capable of participating in regional and global markets.
HSC has always been a company that puts market development first. We focus on 4 main groups of efforts.
The first is to increase the number of goods, that is, to increase the number of listed companies on the market, in order to expand the breadth of the market.
The second is the effort to increase market depth, that is, increase the value of transactions. We participate in the development of indices, products such as derivatives, warrants - these products themselves have an impact on the underlying market. In recent years, we have also participated in the ETF market - a passive investment trend that is growing strongly. Initially, the capital flow into ETFs was small, but recently it has become a big trend in the investment market.
Third is about law. We participate in developing legal regulations. Recently, HSC has contributed to the IPO and listing process to promote Vietnam to have more new enterprises, contributing to the Securities Law...
Fourth is to promote market information. We participate in the development of international accounting standards and transparent governance.
All of these efforts are aimed at upgrading Vietnam to a market where international investors can easily enter and exit, have the ability to profit from the market, while not causing difficulties for domestic investors. This brings positive impacts to the entire market.
Shifting mindset to sustainable development
- Ms. Ha Thu Thanh, Chairwoman of the Board of Directors of Vietnam Institute of Directors (VIOD)
The benefit of entering the market is the shift in mindset from numerical growth to sustainable development that takes into account non-financial factors. Businesses have no choice but to comply, thereby stepping up to the next level, moving beyond compliance to good practices.
We expect that after being upgraded to emerging market status, the Vietnamese stock market will develop further. We have just attended the ASEAN Financial Forum, which included an assessment of corporate governance. This year, Vietnam has made a lot of progress to increase its score according to the roadmap approved by the Prime Minister, aiming at the average score in ASEAN.
Our expectation is that listed companies will use corporate governance as a measure to enhance the value of their assets in the ASEAN asset class. It is important to understand that the ranking of an enterprise in the ASEAN asset class does not come from the growth in numbers, but from the level of corporate governance ranking. Therefore, corporate governance will become a new target for enterprises to move forward in tandem with the market's upgrading process.
Source: https://baodautu.vn/thi-truong-chung-khoan-viet-nam-buoc-chuyen-de-vuon-minh-d343815.html
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