According to the latest data from the Vietnam Securities Depository and Clearing Corporation (VSDC), August 2024 saw the highest number of new securities accounts opened in over two years, exceeding 330,000. This figure matches the peak last seen in May 2022, reflecting investors’ continued confidence in the Vietnamese stock market.

The vast majority of new accounts in August were opened by individual investors, with institutional investors opening only 131 new accounts. This indicates that the Vietnamese stock market is attracting an increasing number of retail investors. Since the beginning of 2024, the total number of securities accounts held by domestic investors has grown by over 1.4 million. By the end of August, the number of securities accounts held by individual investors surpassed 8.6 million, representing approximately 8.6% of Vietnam’s total population.

This figure is approaching the Vietnamese government’s target of 9 million securities accounts by 2025 and is steadily progressing towards the long-term goal of 11 million accounts by 2030. However, it’s worth noting that this number may not accurately reflect the actual proportion of the population participating in the stock market, as investors may open accounts with multiple securities companies.

Despite a sharp decline in early August, the Vietnamese stock market subsequently stabilized and showed signs of expansion. In the first eight months of 2024, the VN Index cumulatively rose by 13.63%, demonstrating strong resilience and growth potential. The banking sector continued to lead the market, contributing over 13 percentage points to the overall rise of the VN Index. It was closely followed by real estate, financial services, and food and beverage sectors, whose strong performance significantly supported the overall market trend.

Compared to the sluggish trading in July, August saw a slight 3% decrease in trading volume. This may reflect investors’ cautious sentiment after the previous rapid rise and the normal market consolidation at high levels.

In terms of investor behavior, August showed different investment strategies. Domestic institutional investors maintained net buying, amounting to 7.24 trillion Vietnamese dong. Individual investors had net sales of 3.63 trillion dong. Foreign investors also showed net sales, amounting to 3.61 trillion dong.

Despite overall net sales by foreign investors, Vietnam’s market continues to enhance its attractiveness to foreign investors. In August, the number of securities accounts held by foreign investors increased by 255, with individual accounts increasing by 262 and institutional accounts slightly decreasing by 7. By the end of August, the total number of foreign investor accounts in the Vietnamese market reached 47,004.

Mirae Asset Securities, in its latest market analysis report, points out that the Vietnamese stock market may continue to be affected by the mixed growth prospects of major regional economies, particularly Vietnam itself. The report suggests that due to the lack of clear growth drivers for major blue-chip stocks and a less optimistic overall economic outlook, the market may experience more frequent fluctuations in the future. The VN Index is expected to oscillate between 1,200 and 1,280 points.

In recent years, the Vietnamese government has been committed to promoting capital market development, including measures such as simplifying account opening processes, improving market transparency, and enhancing investor education. These policies have created favorable conditions for new investors to enter the market and laid the foundation for the market’s long-term healthy development.

Key points:

• In August 2024, over 330,000 new securities accounts were opened in Vietnam, reaching a two-year high.
• Since the beginning of the year, more than 1.4 million new securities accounts have been added, with the total number of individual investor accounts exceeding 8.6 million.
• In the first 8 months of this year, the VN Index rose by 13.63%, with strong performance in sectors such as banking and real estate.
• Domestic institutional investors maintained net buying, while individual and foreign investors showed net selling.
• The number of foreign investor accounts continues to increase, reflecting the international attractiveness of the Vietnamese market.
• Market expectations suggest continued volatility, with the VN Index potentially oscillating between 1,200-1,280 points.