According to data from the Vietnam Securities Depository (VSD), investors opened 226,000 new trading accounts in July. Over the first 7 months, the market added nearly 1.2 million accounts, mostly belonging to individual investors.
By the end of last month, the number of securities accounts in Vietnam reached nearly 10.5 million, equivalent to over 10% of the population. Domestic individual investors account for 99.8% of this figure. However, the number of foreign accounts decreased by 188 compared to the previous month, to 48,781.
According to the government's plan, the market aims to have 11 million accounts by 2030, focusing on developing professional individual investors, organizations, and attracting foreign participation.
Compared to 10 years ago, investors have opened 8.8 million more securities accounts, equivalent to a 560% increase.
The number of securities accounts has increased continuously since the beginning of the year amid a positive outlook for the Vietnamese stock market. The VN-Index, the market's benchmark index, reached 1,547 points at the close of trading on 5/8, up 281 points in 7 months, equivalent to an increase of over 22%.
At the end of last month, Vu Thi Chan Phuong, Chairwoman of the State Securities Commission (SSC), said one of the key tasks of the industry is to create a reasonable structure between individual and institutional investors, both domestic and foreign. The regulatory body will encourage investor participation in the market through various investment fund types, especially voluntary supplemental pension funds, one of the national financial pillars in developed countries.
Tran Quoc Toan, Director of Branch 2 at Mirae Asset Securities, predicts the VN-Index will continue its positive trend in August. The expectation of Vietnam being included in the FTSE Russell's emerging market list is a significant driving force. Finance Minister Nguyen Van Thang said Vietnam will soon meet the market upgrade criteria.
In addition, Mirae Asset Securities' analysis team noted that in its 25-year history, August has had an average performance of 2.21%, with the VN-Index increasing 56% of the time. This is one of the reasons investors can remain optimistic about the market.
Tran Quoc Toan shared that the current price-to-earnings ratio (P/E) is over 13, lower than the average of the past 5 years (around 16). Therefore, the growth potential of the VN-Index remains substantial, according to Toan.
However, the expert also noted that the market always experiences corrections with unexpected profit-taking pressure. For example, in 2021, the market experienced two declines of over 10% for various reasons. "Therefore, investors must always manage risks, especially when using financial leverage," Toan commented.
Trong Hieu
