Vietnam not an easy market for foreign-invested securities companies
VietNamNet Bridge - Despite advantages in capital and experience, foreign-invested securities companies still are finding it difficult to cement their positions in the fledgling stock market.


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74 securities companies are operating in Vietnam




Unlike the banking sector, the deals of foreign investors taking over Vietnamese securities companies haven't attracted public attention, partly because of the modest number of takeover deals and their small scale.

According to the State Securities Commission (SSC), 74 securities companies are operating in Vietnam, a decrease of 5 companies compared with the end of 2016. Of this, the number of companies in which foreign investors hold 100 percent of capital or a controlling stake is very modest. 

South Korean Shinhan Vietnam, Worri CBV, KIS Vietnam, Mirae Asset and Malaysian Maybank Kim Eng are the best-known foreign invested securities companies.

To date, most foreign securities companies still cannot cement their positions in the market and they meet difficulties when competing with domestic rivals.

To date, most foreign securities companies still cannot cement their positions in the market and they meet difficulties when competing with domestic rivals.

Shinhan Vietnam (SSV) with charter capital of VND146 billion, got an operation license in February 2016. Its predecessor was Nam An Securities Company (NASC). Shinhan Investment Corporation in 2015 successfully took over NASC after acquiring 14 million shares from NASC’s shareholders.

The company reported modest revenue of VND5 billion in 2016 and post-tax profit of minus (-) VND7 billion.

Woori CBV, where South Korean investors hold a 49 percent stake, reported modest profit in 2016, which it made thanks to increases in financial asset prices, not from major services such as brokerage and consultancy. In 2015, Woori CBV took a loss of VND1 billion and in 2014, it made a profit of VND97 million.

KIS Vietnam, with charter capital of VND1.117 trillion, and a South Korean investor holding a 98 percent stake, is the most profitable foreign invested securities company. 

KIS Vietnam was also established after the owners took over a Vietnamese company (Gia Quyen). Just after five years of operation in Vietnam, KIS Vietnam listed itself among 10 biggest brokers. The top 10 companies now hold 70 percent of the brokerage market share.

Most recently, Maritime Securities (MSI) received permission from SSC to sell a 99.4 percent stake to KB Securities, a subsidiary of South Korean KB Group. There has been no official statement about the value of the deal, but sources said the deal is worth VND756 billion, or $33 million.

By mid-2017, MSI had had total assets of VND672 billion. The company may be renamed as KB Securities Vietnam. In 2016, MSI held 3.5 percent of the market share at the Hanoi Stock Exchange and 1.7 percent at HCMC Stock Exchange.

Meanwhile, Mirae Asset has increased its charter capital to VND2 trillion, becoming the third largest company. 


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Kim Chi

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