Group 1 - Topic 3:

Using the Game theory

and pricing propose a new
competitive strategy for
your firm?
T
 Game theory for
vndirect in the stock
market industry
 Table of content
1. OVERVIEW OF THE STOCK
MARKET INDUSTRY

2. VNDIRECT COMPANY
OVERVIEW

3. COMPETITIVE landscape
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4. Competitive strategy and game
 overview of the stock market
industry
The total value of capital mobilization through the stock market in 2020 reached VND 413,700 billion, an
increase of 30% compared to the end of 2019. The capitalization of the stock market reached 84.1% of GDP
in 2020, exceeding the set target ( by 2020 to reach 70% of GDP). Total outstanding loans in the entire bond
market as of the end of December 2020 reached about 45% of GDP, an increase of 17.6% compared to the
end of 2019, of which outstanding debt of government bonds was 27.7% of GDP, outstanding outstanding
of bonds enterprises (Corporate bonds) is 15.1% of GDP.
 OVERVIEW OF

VNDIRECT
Company name: VNDIRECT Securities Joint Stock Company

 Industry: Brokerage, securities depository, corporate financial advisory,

proprietary trading, underwriting and portfolio management

 Category: Finance - Securities

 Established: November 7, 2006

 Website: www.vndirect.com.vn

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 Main products and services
of the company

Investment banking activities

Securities brokerage activities Trading securities activities

Operations of capital & financial business Fund management activities

6
 SWOT
Analysis
STRENGTHS WEAKNESSES
• A member of IPA group Employees still do not have enough
capacity to take advantage of
• High charter capital technology strengths, leading to
• waste of technology resources.

• Products and services are

diverse
• Young, professional, enthusiastic
staff

• The opportunity for the stock • Too many securities companies

market to develop is huge
• The goal of our state is to
equitize state-owned enterprises,
issue stock bonds to attract
capital
OPPORTUNITIES
operating in the market
• The competition from new
competitors and competitors from
abroad
• Investors in Vietnam's stock
market are still not professional
7 THREATS
 3.Competitve landscape
 The brokerage market share fluctuated
insignificantly concentrated in the TOP 5 securities
companies including VPS, HSC, VNDirect, SSI,
and MBS.
 The total trading volume of the whole market
reached more than 12.6 million contracts, the
trading volume reached more than 12.6 million
contracts.
 The average transaction volume reached 203,721
contracts/session, an increase of 17.7% compared
to the first quarter of 2021.
 COMPETITIVE
landsacape
 Foreign companies are losing the  Companies compete by
advantage of cheap capital consulting quality
Domestic securities companies have Securites companies have knowledge
deployed preferential interest rate training programs, from the very
packages beginning for investors, along with
• SSI: a fee package for new customers programs. seminar
• MBS: low fee package
• VPS: 6-month free derivatives trading
program

 Competition in the securities industry today is more difficult because investors have
more tools to access information and knowledge.
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 Direct
competitor:
- VPS is currently at the top of the stock brokerage market in 2021.
- Various and regular discount and promotion policies:

 Policy of free trading for the first month for investors who open new accounts

 VPS applies the lowest lending interest rate for margin from only 6.8%/year.

 The commission rate divided by the broker to 68%, instead of 30-40% like other

companies.

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Limitation of
VPS:
- VPS's stock tracking application
is not as appreciated as SSI
iBoard.
- VNDirect: Stock Trading.

<
4.Competitive strategy and
gametheory application
1. Developing Technology

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 VPS: eKYC

VPS:
 eKYC: Online transaction identifier
 Integrated with modern technology,
open a single account that can register
and use full services available 100%
online.

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 VNDirect:
DBROAD
 DBROAD: Multi-asset, multi-ultility
online trading platform for trading in
stocks, bonds, fund certificates and
various types of financial asset.
 The first to run both platform
IOS/ANDROID.

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 Fee

VPS VNDirect
- 0.15 % - 0.5 %
- VND 5,000 per contract.
- 0 % for a limited time.
- One-way transaction fees open
- Zinvest Club: 6.8 % first 30 days and or closing positions of VND
9.8 % from the 31st to the end of the 12,000 per contract.
year.

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3. The margin Pool

 Total outstanding loans, mostly

margin reached 146,000 billion
VND by the end of Q2 2021, an
increase by 35,000 billion VND
compared to Q1 2021
 The figure is expected to increase
aggressively due to the stock
fever

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  VND: outstanding margin pool
increases by 42% compared to
Q1 2021, reached 9,300 billion
VND

 VPS: outstanding margin pool

increases by 16.4%, reached
7,380 billion VND

 Both firm has been continuously

finding new funds to raise their
margin pool
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4. Reduce interest rate
 Both firms regularly reduce the
interest rate on margin loan. 

 Mid 2020, both lowered to 9% in

spirit of Circular 14/2020 from
the government. 

 VPS even drop it to 7.5 for

special cases. 

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  STOCK FEVER 

 New investors and traders enter

the market (F0)

 F0 often seek investment advice

from brokers, often has FOMO
mentality, little financial
knowledge

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  VPS brokers are flooded on
popular stocks forums and
communities on social media,
completely contradict to VND
brokers
 VND doesn’t focus on brokerage
services 
 Didn’t recruit any new brokers in
the last 3 months (according to
VND recruitment webpage)
 Tend to focus more on
technology, better UI and
customer services (reports,
applications)

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 4. Business result
 Total account under management: 550,000
 Q1 2021: 144% growth rate compared to the same period (141,000
accounts)
 Q2 2021: 120% growth rate compared to same period (76,000
accounts)
 Q2 Revenue from brokerage services triples compared to the same
period

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PAYoff
Matrix

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PAYoff
Matrix

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4.REcommendation:
Developing Technology

 Maintain software development

as the priority in their
competitive strategy

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 Transaction fee and
margin loan
 Reduce according to VSP but promotion + increase knowledge training seminars for investors.

 Loan interest should be reduced

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 Brokerage services

 Broker: do not necessary increase the number

of brokers like VPS but increase intensive
training on the quality of consulting for brokers

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THANKS for listening!

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 Group 1:
Nguyễn Lâm Anh
Nguyễn Mạnh Linh
Nguyễn Đình Đình
Nguyễn Đức Lâm
Đào Thị Khánh
Linh
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