You all now that Vietnam is a fast-developing country where GDP increased by more than 8% last year. But a strong GDP growth does not necessarily mean that all investments will be successful. So, in a fast-growing economy like Vietnam, should you really invest in the stock market? First we are going to see how the stock market works and how to invest in it as a foreign investor. We will cover the basics of Vietnam’s stock market such as types of stocks, trading platforms and regulations. Then, we will discuss Vietnam’s current market situation. And finally, we will give our opinion on whether it is even worth investing in stock market in Vietnam. So let’s get started!

Types Of Stocks You Can Find In Vietnam

There are two main stock exchanges in Vietnam

First, the Ho Chi Minh Stock Exchange (HOSE) and, second, the Hanoi Stock Exchange (HNX). The HOSE is the larger and more liquid exchange, with over 400 listed companies and a market capitalization of over 200 billion US dollars. The HNX is the smaller and less active exchange, with about 380 listed companies and a market capitalization of around 30 billion US dollars. Both exchanges trade stocks, bonds, derivatives, and other securities. But it is worth to note that Vietnam’s stock market is the smallest in South-East Asia.

The stocks in Vietnam are classified into three groups: blue-chip stocks, mid-cap stocks, and penny stocks.

Blue-chip stocks are the largest and most reputable companies in Vietnam, such as Vietcombank, Vinamilk, or Vietjet Air. These stocks have high liquidity, stable earnings, and low volatility. They are considered as suitable for long-term investors who seek steady returns and dividends.

Mid-cap stocks are the medium-sized companies that have good growth potential and profitability, such as FPT Corporation, Masan Group, or The Gioi Di Dong. These stocks have moderate liquidity, earnings, and volatility. They are suitable for medium-term investors who seek capital appreciation and moderate risk.

Penny stocks are the smallest and riskiest companies in Vietnam, such as Bamboo Airways, Hoang Anh Gia Lai, or Kinh Bac City Development. These stocks have low liquidity, earnings, and volatility. They are suitable for short-term investors who seek high returns and high risk.

How Do You Invest In The Stock Market In Vietnam As A Foreign Investor?

Check out this video as Attorney Ken Duong discusses in detail what kind of documents you need to prepare in order to buy and sell stocks in Vietnam. Also he will discuss the Vietnam stock market’s current situation so you can consider if you want to invest in it or not.

Lear more about Business in Vietnam

We made many videos about doing Business in Vietnam, from retail market to real estate and even how to invest in Vietnam! Check out our YouTube channel for more Vietnam news. But if you want to apply for your investor visa, feel free to contact us.