Stock Trading on Vietnamese Stock Exchange: A Comprehensive Guide for Investors

The Vietnamese stock market is developing rapidly with hundreds of thousands of investors participating each year. Choosing the right trading platform is an important first step to start your investment journey. Currently, the Vietnamese stock exchanges include main platforms such as HOSE, HNX, Upcom, along with OTC trading platforms and SSI, each with its own characteristics serving investors with different goals.

Two Main Methods of Stock Investment in Vietnam

1. Stock and Securities Trading

Stock investment is the most popular method on the Vietnamese stock exchanges. Currently, on the HOSE and HNX, there are over 750 stock and fund certificate codes from listed companies, while Upcom provides an additional more than 870 registered trading codes. Investors can buy and sell over 1,600 domestic securities and profit from price differences using the formula:

Profit/Loss = Selling Price − Purchase Price − (Tax + Fees)

You can use cash to buy stocks or use purchased stocks as collateral with a securities company to borrow money and trade on margin (margin). According to the regulations of the State Securities Commission, the maximum margin ratio for domestic stocks is 50% (leverage 1:2), with interest rates ranging from 10% to 18% annually.

Important notes:

• Settlement time: T+2 (2 business days after the transaction)
• Transaction fee: 0.15% − 0.5% of transaction value depending on the exchange
• Example: Buying 1,000 FPT shares at 53,500 VND, with a fee of 0.3%, will be 160,500 VND

2. Derivative and Futures Trading

Derivative trading in Vietnam focuses on the VN30 index — an index comprising 30 stocks with the largest market capitalization and liquidity. This method allows investors to exploit short-selling strategies to profit when the market declines. You can use up to 1:10 leverage when trading derivatives domestically.

Derivative features:

• Settlement time: T+0 (trades occur immediately)
• Requires technical analysis knowledge
• Suitable for short-term trading strategies
• High growth potential but also high risk

Reputable Vietnamese Stock Exchanges

HOSE − Ho Chi Minh City Stock Exchange

HOSE is Vietnam’s main stock exchange, under the authority of the State Securities Commission. It lists stocks, bonds, and warrants of large companies. Currently, HOSE has more than 500 securities being traded.

Trading information:

• Trading hours: 9:00 − 15:00, Monday to Friday
• Order matching methods: Periodic, continuous, negotiated
• Order types: ATO, LO, MP
• Trading units: Lot multiples (10, 20, 30…)

HNX − Hanoi Stock Exchange

Established in 2005, HNX plays an important role in Vietnam’s securities trading system. According to recent adjustments, HNX mainly focuses on derivatives and bonds, while stock trading is gradually shifting to HOSE.

Upcom − Unlisted Stock Market

Upcom is the platform for trading stocks that do not meet the listing requirements on HOSE and HNX. This exchange hosts over 800 stocks, futures contracts, warrants, and ETFs. Price fluctuation limits at Upcom are higher than (over 15% per day, twice that of HOSE), but information transparency is lower compared to the main exchanges.

OTC − Over-the-Counter Trading

OTC is a platform for trading Upcom stocks and unregistered stocks based on a “buyer-seller agreement” principle. Although regulated by securities laws, OTC products carry high risks due to limited information and liquidity.

SSI − Large Online Securities Trading Platform

SSI is one of the oldest and largest online securities trading platforms in Vietnam. It offers a full range of products including stocks, covered warrants, ETFs, bonds, derivatives, open-end funds, and investment advisory services. SSI is a popular choice among individual investors seeking domestic securities trading.

Trading Hours in Vietnam Stock Exchanges

Domestic exchanges operate under a unified schedule:

Trading occurs from Monday to Friday each week.

Effective Stock Investment Strategies

1. Long-term Investment in Bluechip Stocks

Long-term investors should focus on indices and stocks of large corporations with stable growth. This approach involves less risk and offers sustainable profits over time.

2. Focus on High-Growth Stocks

Despite economic fluctuations, some sectors such as healthcare, medical, and information technology continue to grow strongly. Investors can allocate part of their capital to these high-growth stocks.

3. Leverage Derivative Trading

The derivatives market allows profits in both directions. You can use short-selling strategies to profit when the market declines, expanding profit opportunities.

Getting Started with Trading on Vietnamese Stock Exchanges

Step 1: Choose the Right Exchange

Determine your investment goals (long-term or short-term) and select the appropriate Vietnamese stock exchange. If you want to trade domestic stocks, HOSE, HNX, and Upcom are primary options. If interested in derivatives, carefully study the trading rules at each exchange.

Step 2: Open an Account

Complete the registration process at a licensed securities company operating on the Vietnamese stock market. You will receive an account code and access to the trading platform.

Step 3: Deposit Funds and Start Trading

Deposit money into your account following the securities company’s instructions. Then, you can buy and sell securities according to your planned strategy.

Step 4: Risk Management

Always set stop-loss and take-profit orders to protect your capital from unexpected market fluctuations.

Effective Stock Trading Tips in Vietnam

• Start small: When beginning, trade with the smallest amounts and lowest leverage.
• Record and analyze: Track each transaction, note reasons for profit/loss to learn from experience.
• Manage risks: Never risk your entire capital on a single position.
• Continuous learning: Master technical and fundamental analysis before making large investments.
• Patience: Successful trading requires patience, discipline, and good psychological resilience.

Conclusion

The Vietnamese stock market offers many opportunities for investors at all levels. The key is to choose a stock exchange that aligns with your goals, understand the investment products, and develop a solid trading strategy. Whether you opt for traditional stocks or derivatives, always prioritize risk management and continuous learning to improve your investment skills in this dynamic market.