The prime minister has approved a plan to establish the Vietnam Stock Exchange, which will be formed under the merger of the Hochiminh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX), in a move to upgrade the stock market to the international standard.
The Hanoi-based Vietnam Stock Exchange will have a charter capital of VND3 trillion and be operated by the Ministry of Finance.
The merger is expected to help improve the efficiency, trust and transparency of the Vietnam stock market and the Vietnam Stock Exchange will be equitized after 2023.
The value of the stock market hit VND3,900 trillion ($167.8 billion) at the end of 2018, up 12.7% on year and equal to 71.6% of the country’s total gross domestic product (GDP). The figure even beat the target set at 70% of the country’s total GDP for 2020.
Average trading value in each session of 2018 was estimated at VND6.5 trillion ($279.6 million), up 29% year on year.
Total value of the bond market was VND1,120 trillion, up 10.5% on year and equal to 20.3% of 2018 GDP, and daily average trading value of the bond market reached VND8.83 trillion.
The derivative market also saw strong liquidity growth after its first year of operation, with more than 21,600 contracts traded.
At the end of 2018, total corporate earnings rose 20.5% in revenue and 24.9% in profit year on year. Securities companies saw their post-tax profits rise 40% year on year.
Analysts and securities firms are hoping Vietnamese shares will perform better in 2019.
The average estimate of nine analysts, investors and strategists compiled by Bloomberg News showed that the Vn Index could rise to 1,049 by the end of December, implying an 18% advance for 2019.