TOPIC 8: EXAMPLE OF STOCKS MARKET IN VIETNAM

DO THI TUYET MAI- 11216444

In Vietnam, stocks are issued and sold through a process that involves several key entities and steps.
1. Regulatory Framework: The issuance and sale of stocks in Vietnam are regulated by the State
Securities Commission (SSC) and the Ministry of Finance (MOF). These regulatory bodies
oversee the stock market and ensure compliance with relevant laws and regulations.
2. Initial Public Offering (IPO): When a company decides to go public and issue stocks for the
first time, it typically conducts an Initial Public Offering (IPO). During an IPO, the company
offers a portion of its shares to the public for sale on the stock exchange.
3. Underwriting: Before an IPO, the company may engage the services of underwriters, typically
investment banks or securities firms. Underwriters help the company determine the offering price
of the shares, facilitate the sale of shares to investors, and provide financial advice.
4. Listing on Stock Exchange: Once the shares are issued through the IPO, they are listed on one
of Vietnam's stock exchanges, such as the Ho Chi Minh City Stock Exchange (HOSE) or the
Hanoi Stock Exchange (HNX). Listing requirements vary depending on the exchange but
generally involve meeting certain financial and governance standards.
5. Trading: After the shares are listed on the stock exchange, they can be traded among investors.
Investors buy and sell shares through licensed brokerage firms that are registered with the SSC.
Trades are executed electronically through the stock exchange's trading system.
6. Market Participants: In addition to individual investors, institutional investors such as mutual
funds, pension funds, and foreign investors also participate in the stock market in Vietnam.
7. Regulatory Compliance: Companies that have issued stocks are required to comply with
ongoing reporting and disclosure requirements set by the SSC and the stock exchange. This
includes regularly disclosing financial information and other material developments that may
affect the company's stock price.
8. Investor Protection: The regulatory framework in Vietnam aims to protect investors by ensuring
transparency, fairness, and integrity in the stock market. This includes measures to prevent insider
trading, market manipulation, and other forms of misconduct.
Overall, the process of issuing and selling stocks in Vietnam follows similar principles to those in other
countries, but specific regulations and market practices may vary. It's important for investors to conduct
thorough research and seek advice from financial professionals before investing in the stock market.
One prominent example of the stock market in Vietnam is the Ho Chi Minh City Stock Exchange
(HOSE), also known as the Hochiminh Stock Exchange. HOSE is the largest stock exchange in
Vietnam in terms of market capitalization and trading volume. It plays a significant role in the
country's financial market and economic development. Here are some key features of the HOSE:

 Establishment: HOSE was established on July 20, 2000, following the merger of the Ho
Chi Minh City Securities Trading Center and the Ho Chi Minh City Securities Exchange
Center. It operates under the supervision of the State Securities Commission (SSC) and
the Ministry of Finance (MOF).
  Listed Companies: HOSE lists a wide range of companies from various sectors,
including finance, manufacturing, real estate, telecommunications, and consumer goods.
These companies issue shares to raise capital for business expansion and investment
projects.
 Market Indices: HOSE tracks the performance of listed companies through several
market indices, including the VN Index (VNINDEX) and the VN30 Index (VN30). These
indices serve as benchmarks for investors to gauge the overall performance of the stock
market and specific sectors.
 Trading Mechanism: HOSE operates a computerized trading system that facilitates the
buying and selling of stocks electronically. Trading hours typically run from Monday to
Friday, with a pre-opening session, regular trading session, and closing session.
 Market Regulations: HOSE imposes listing requirements and regulations to ensure the
quality and transparency of listed companies. These requirements include financial
reporting standards, corporate governance practices, and compliance with securities laws.
 Investor Participation: HOSE attracts participation from various types of investors,
including domestic retail investors, institutional investors, and foreign investors. Foreign
ownership limits may apply to certain industries, and foreign investors must comply with
regulatory requirements when investing in Vietnamese stocks.
 Market Development: HOSE is actively involved in initiatives to develop Vietnam's
capital market, including the introduction of new financial products, improving market
infrastructure, and enhancing investor education and awareness.
Overall, the Ho Chi Minh City Stock Exchange serves as a vital platform for companies to raise capital
and for investors to participate in Vietnam's growing economy. It plays a crucial role in the country's
economic development and integration into the global financial system.