Small investors oppose expanding trading lot Ho Chi Minh City Stock Exchange (HOSE)’s proposal to raise the minimum trading lot to 1,000 shares is receiving mixed opinions from market experts and investors. The proposal was initiated by newly-appointed General Director of HOSE Le Hai Tra as a solution to reduce system overloads which have troubled traders recently. A 1,000 minimum trading lot will limit the participation of small investors, while the stock market is moving towards fairness and equality, said a budding investor. “My friends and I, when joining the stock market, only have a few tens to several hundreds of millions of dong, raising the minimum trading lot to 1,000 shares will directly affect our investment capacity,” said individual investor Diep. “With expensive stocks, we may have to spend hundreds of millions of dong to buy the minimum 1,000 shares,” she said. According to Diep, the stock market has never had such a chance for growth. New cash flow into the market pushed liquidity to a record high level. However, the new proposal may not only prevent new investors from entering the market but also discourage existing investors. “The plan to raise the minimum trading lot to 1,000 shares could quickly reduce the number of orders delivered daily on HOSE. However, it will cause frustration among small investors who are directly affected by the plan as they think they are not protected,” said Do Bao Ngoc, Deputy General Director of Kien Thiet Securities Vietnam (CSI). “This plan, if in place, will affect the rapid development of the stock market under the current favourable conditions, one of which is great interest from global investors,” he said. “Under the new plan, the most affected are the investors whose trading accounts have VND1 billion or less,” said Nguyen Hoang Hai, Vice Chairman of Viet Nam Association of Financial Investors (VAFI) According to VAFI statistics, investors whose trading accounts have VND500 million or less …
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Initiative’s success helped by quick response to pandemic
As 2020 is coming to end, how do you evaluate the development of businesses that received recognition during the Vietnam Value Programme? Vu Ba Phu, director general of the Trade Promotion Agency under the Ministry of Industry and Trade After 17 years of running the programme with seven times choosing national brands, we have witnessed the continuous growth of many domestic enterprises. At the first selection in 2008, we saw only 30 chosen companies with their products. By 2018, this number had grown to 97, and this year we have recorded 124 enterprises and their brands. However, the growth of the business community has not only happened in the number of participating businesses, but also export turnover, sales, and their contribution to the state budget, as well as their efforts in social responsibility and job creation. For example, firms recognised as national brands in 2018 reached a revenue of about VND907 trillion ($39.4 billion), with their export turnover amounting to VND130 trillion ($5.6 billion), contributing VND85 trillion ($3.7 billion) to the state budget and creating 340,000 jobs. Meanwhile, in this year, these numbers have climbed to VND975 trillion ($42.4 billion) and VND123 trillion ($5.34 billion) in 2020, respectively, with contributions to the state budget amounting to VND197 trillion ($8.5 billion) and 350,000 new jobs created – all this despite the pandemic. What are the main differences between the 2020 programme and previous years’ iterations? This year has been a special one as most of the businesses were affected by the health crisis, even making it difficult for the organisers of the Vietnam Value Programme to obtain applications, organise conferences, and disseminate information. Facing these circumstances, the Ministry of Industry and Trade (MoIT) responded quickly and directed our Trade Promotion Agency (VIETRADE) to coordinate with relevant ministries and localities to implement online procedures for the …
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Swiss investors perk up at prospects
Market Focus Vietnam webinar Le Linh Lan, Ambassador of Vietnam to Switzerland and Liechtenstein, said at a Market Focus Vietnam webinar last week that Swiss investors with comparative advantages and strengths in tech, innovation, capital, and expertise in finance, pharmaceuticals, and food manufacturing will look more to Vietnam as a safe and attractive destination for doing business in a post-pandemic world. “In addition, there is still potential in areas of trade and investment given the complementary nature of the two economies,” Lan added. Switzerland, as a member of the European Free Trade Area, has been in negotiation with Vietnam for a far-reaching free trade agreement (FTA) since 2012. “Negotiations between Vietnam and the European Free Trade Association (EFTA) have completed their 16th round,” Lan said. “We are hopeful about the possibility of the conclusion of the trade deal especially this year, when we celebrate the 50th anniversary of the establishment of diplomatic relations between the two economies. An early conclusion of the FTA between Vietnam and the EFTA will give a big boost to economic and trade relations.” With forthcoming conclusion of the FTA, Swiss companies can enjoy similar benefits as their EU peers under the provisions of the EU-Vietnam agreements, which entered into force last year. Indeed, more Swiss businesses are exploring investments in Vietnam. Last November, a group of Swiss and German investors paid a working visit to Vietnam. Former German Vice Chancellor Philipp Rösler led the delegation, meeting with Prime Minister Nguyen Xuan Phuc and leaders of a number of ministries. Business leaders decided to invest $350 million in the healthcare sector, tech start-ups, and notably a tourist resort in the southern island of Phu Quoc. Last week, the non-profit Swiss Vietnamese Business Gateway (SVBG) also made its official debut to promote investment and trade cooperation between Swiss and Vietnamese companies. The SVBG, …