Vietnam's capital market, which includes stocks, bonds, and insurance, has shown encouraging trends in the initial months of 2024, as outlined in a report by the Ministry of Finance (MoF).

An investor at a securities company in Hanoi. Photo: Viet Dung/The Hanoi Times

In February, the stock market experienced volatile sessions with alternating gains and losses, but still on an upward trend, stated the MoF.

As of February 27, the benchmark VN-Index reached 1,237.46 points, a 6.3% increase compared to the end of the previous month and a 9.5% increase compared to the end of 2023. The market capitalization of listed stocks reached VND6,360 trillion (US$258 billion), up 7.1% from the end of 2023, equivalent to 62.2% of the estimated GDP in 2023.

Currently, 739 stocks and fund certificates are listed on the two stock exchanges, 868 stocks registered for trading on the UPCoM, and nearly 7.4 million securities investment accounts.

The average trading value in February was VND22.4 trillion ($909 million) per session, a 19.6% increase compared to the previous month. The two-month average was VND20 trillion ($812 million), a 14% increase compared to the 2023 average.

In February 2024, the MoF, in coordination with the Government Office, organized a conference to outline the tasks for developing the stock market in 2024.

To upgrade the stock market, the Ministry has been actively working with market rating organizations such as FTSE Russell and MSCI to understand their market classification criteria and exchange information on Vietnam's regulatory efforts.

“The Ministry is continuing its efforts to perfect major projects related to stock market development strategies, restructuring the stock market, and establishing a capital trading platform for innovative start-ups,” it noted. In addition, emphasis is being placed on strengthening the management, supervision, inspection, and auditing of public companies and securities business entities to ensure the healthy development of the market. Some 102 penalty decisions have been issued, with total fines of VND19 billion ($771,025).

Concerning the bond market, there have been 465 listed bonds; the average trading volume in the two-month period reached VND9.2 trillion ($373 million), up 40.9% from 2023.

As of February 23, 2024,  eleven companies issued bonds with a volume of VND7.25 trillion ($294.2 million or 8.2 times higher than the same period in 2023), with real estate companies accounting for 52% (VND3.75 trillion or $152 million) and construction companies 24% (VND1.7 trillion or $69 million).

The average yield was 10.26% per annum, and the average maturity was 5.5 years. 52.4% of the bonds issued were secured.

The pre-maturity repurchase volume was VND9.1 trillion or $370 million (down 41.2% from the same period in 2023). Institutional investors were the main buyers of bonds (80.6% domestic, 6.2% foreign), while individual investors accounted for 13%.

In the insurance market, the total premium revenue for the first two months of 2024 is estimated to reach VND34 trillion ($1.37 billion), a 1.6% increase compared to the same period last year. As of the end of February 2024, the total assets are estimated at VND935 trillion ($38 billion), an 11% increase, and the investment back into the economy is estimated at VND781 trillion ($31.6 billion), up 12.7%.