Vietnam financial market is dependent on the Stock Trading Center of Vietnam, as well as the Hanoi Securities Trading Center. The Vietnam financial market can be broadly categorized into Vietnam stock market and Vietnam bond market.
There are two principal financial institutions that are operating in the Vietnam financial market. They are:
Stock Trading Center of Vietnam or STC
Hanoi Securities Trading Center or HanoiSTC
The Stock Trading Center of Vietnam or STC was incorporated in the year 2000. It is also known as the Ho Chi Minh City Securities Trading Center and it is located in Ho Chi Minh City. It functions as an authorized body of Vietnam State Securities Commission. The principal responsibility of the STC is to supervise the stock trading operations in Vietnam.
The Hanoi Securities Trading Center or HanoiSTC is based in Hanoi. It was incorporated in the year 2005 and it deals with the buying and selling and auctions of shares and bonds. It was established 5 years after the Stock Trading Center of Vietnam was founded.
Vietnam financial market deals with the following types of securities:
The STC functions as the prescribed device for issue of government bonds and it also serves as the secondary market for the bonds that have been already issued. The denomination of every security, which is purchased or sold on the STC is done in the national currency of Vietnam, Dong.
The standard face values of the equities and bonds are the following:
- VND 10,000 for equities
- VND 100,000 for bonds
The State Securities Commission (SSC) of Vietnam was incorporated in the year 1996. The duties and responsibilities of the SSC include the following:
- Development of capital markets in Vietnam
- Issuing licenses to the participating companies
- Drafting and implementing rules and regulations
For blueprinting regulations, it gets assistances from the International Finance Corporation.
The stock trading operations of the STC are carried out with the help of an electronic order-matching arrangement. The clearing and closure of transactions is done with the help of the Bank of Investment and Development of Vietnam (BIDV), which is a commercial bank owned by the state.