Brokerage Sector | Initiation Report, Solid Outlook

Vietnam Stock Market Overview

The Vietnamese stock market began operations in 2000 with the launch of the Ho Chi Minh Stock Exchange, with initially just two stocks listing. Since then, the Vietnamese stock market has grown steadily and emerged as one of the notable equity markets in Asia, in tandem with Vietnam’s rapid economic development over the past two decades.

Several key developments have been deployed in recent years, including revisions to securities laws, implementation of a modernized IT infrastructure with support from the Korea Exchange (KRX), the wave of prefunding requirements for foreign investors, and the introduction of derivative products. These advancements have significantly increased the market’s appeal among both domestic and international investors.

As of the end of April 2025, the total market capitalization of Vietnam’s equity market exceeded USD 263bn, reflecting a compound annual growth rate (CAGR) of 20.2% over the period from 2013 to 2024. The number of investors has surged in recent years, with average daily trading value ranging between USD 700mn and USD 900mn.

Sector Q1 2025 Performance

In Q1 2025, the top 20 securities companies that representing about 90% of the sector market capitalization witnessed revenue rose 8.8% YoY to VND 15,389bn. Margin lending and proprietary trading remain the key drivers of growth. Companies with high market share enjoyed better growth thanks to the ability to capture margin lending demand of retail investors.

By the end of Q1 2025, total margin lending had climbed to VND 280tn (~USD 11.2bn), with the top 20 securities firms accounting for VND 223tn, up 13.3% from year-end 2024 and 33.7% YoY. The loan-to-equity ratio increased to 118.1%, compared to 109.5% in Q1 2024. This sharp rise in margin lending book also led to greater borrowing by securities companies, with total borrowings among the top 20 firms increase swiftly 43.9% YoY, reaching VND 261tn. As a result, interest expenses in Q1 2025 also rose to VND 2,231bn, marking a 50.4% increase YoY and a 21.1% increase QoQ.

Sector Medium – term Outlook

o        Rising domestic retail investor base.

o       Growing professional domestic institutional investors.

o       New products driving liquidity.

o       Upcoming upgrade to emerging market status. 

o       Attractive valuations amid profit recovery.