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Apr 07, 2022 / 17:51

Nearly 5% of Vietnam's population has securities accounts

Vietnam has achieved the milestone three years earlier than the Government’s target for 2025.

The number of new securities accounts opened in March was 271,619, lifting the total to nearly 5 million to date, according to the Vietnam Securities Depository (VSD).

 Investors at a securities company in Hanoi. Photo: Viet Dung

With the country’s population estimated at 98.7 million as of April 4, the number of securities accounts per head has officially reached the 5%-mark, three years earlier than the target set by the Government for 2025.

“Given this current pace, the goal of having 10% of the population owning securities accounts by 2030 is feasible,” stated the VSD.

Upon breaking down, domestic retail investors made up 99.7% of the total new accounts, or 270,949. The number of securities accounts totaled 4.93 million by late March. Meanwhile, investment organizations opened  229 new accounts, or a total of 13,511.

The number of new accounts opened by foreign investors was 401 in March.

Along with the high number of new accounts, the market liquidity had improved significantly in March after sharp declines in the first two months of 2022.

The average transaction values in HNX, HoSE, and UpCOM in March rose by 14.5% against the beginning of the month and 61.2% year-on-year to VND31.5 trillion (US$1.37 billion) per session, in which the value of HoSE, home to the majority of large-caps, increased by 11.4% to VND26 trillion ($1.13 billion), and on HNX by 40.3% to VND3.61 trillion ($158 million).

In March, retail investors continued their dominant role in market transaction activity by making up 88.6% of the total, up 1.88% from the previous month, while that of foreign individuals and organizations remained on the declining trend.

General Director of MB Securities Company Tran Hai Ha in a recent conference expected the local stock market to stay a preferred investment channel, given the low-interest-rate environment, leading to a four-year low in people’s deposits in the banking system.

In addition, the advancement of technologies helps investors gain greater access to the stock market, which could be done via online accounts, transactions, or apps of securities companies.