Vietnam records 10 millionth securities account

THE HANOI TIMES — By the end of May, the number of securities accounts in Vietnam had exceeded 10 million, 99.8% of which were owned by retail investors.

According to data from the Vietnam Securities Depository (VSD), more than 800,000 new accounts were created in the first five months of the year, including 190,000 in May.

The government aims to increase the accounts to 11 million by 2030 with a focus on the higher number of institutional investors and professional traders, and attracting more foreign participation.

Vietnam reached this milestone amid a strong rally in the stock market in May. The VN-Index, the benchmark index, rose by 106 points, or 8.7%, marking the largest monthly increase in two years. Market liquidity remained robust, with the average daily matched order value reaching nearly VND20 trillion (US$800 million) per session.

Tien Phong Securities (TPS) attributed the positive market sentiment in May to stabilizing investor confidence after US tax policy risks had been factored in. In addition, the State Bank of Vietnam's flexible monetary policy helped stabilize exchange rates and maintain low interest rates, supporting the market.

VNDirect Securities predicts that in June, following the recent rebound, the upside of the VN-Index may be limited as it approaches the key resistance range of 1,340–1,350 points. In the short term, consolidation of the market is necessary in order to absorb the low-priced supply and establish a new price base, setting the stage for the next breakout.

This period is also a good time for investors to restructure their portfolios and sell stocks that have soared in value. 'Investors should consider rotating into sectors with attractive valuations that have not yet recovered to the levels seen before the correction on 2 April,' suggested VNDirect. Notable sectors include securities, steel, and export-oriented industries such as textiles and seafood.

Agribank Securities (Agriseco) commented that the market in June will be shaped by a mix of challenges and opportunities. Tariff-related news may become more frequent and unpredictable, weighing on investor sentiment. Moreover, after strong gains in May, many stock groups have reached new highs, leaving little scope for further price increases.

Nevertheless, Agriseco believes that there are still supporting factors for the market, including potential market reclassification and continued earnings growth in Q2. Its analysts forecast that the VN-Index will fluctuate between 1,300 and 1,350 points, with capital flows rotating across stock groups driven by distinct investment themes.