How to invest in the Vietnam Stock Market?

Vietnam has been Southeast Asia’s strongest performing market in the past years. We see increased interest from foreigners who want to capitalize on its growth and invest in stocks. The two biggest stock exchanges in Vietnam are Ho Chi Minh Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX). Foreigners can invest in both of Vietnam’s two major exchanges. To trade stocks in Vietnam, you need to register a securities trading code for foreign investors at the Vietnam Securities Depository (VSD). You can open a Securities Trading Account through a local brokerage firm.

Buy Vietnamese stocks using a Local Brokerage in Vietnam

Getting a brokerage account is a requirement for you to start investing in Vietnam stocks. The five largest brokerage companies in Vietnam by market share are Saigon Securities Incorporation (SSI), Ho Chi Minh City Securities Corporation (HSC), Viet Capital Securities Joint Stock Company (VCSC), Vndirect Securities Corporation (VNDIRECT), and VPS Securities (VPS).

If you’re a non-resident foreign investor, you must open a Foreign Indirect Investment Capital Accounts (FII). FII is solely used for securities transactions including stocks, bonds, investment fund certificates, derivative securities (options, futures, forward contracts). This can be done at the Bank for Investment and Development of Vietnam (BIDV) – Nam Ky Khoi Nghia Branch, Ho Chi Minh City.

Buy Vietnamese stocks using an International Brokerage

On a personal basis, I use eToro and Interactive Brokers, some international brokers with very low fees and extreme reliability: your savings are in fact spread over several banks in order to be protected from a systemic crisis that could impact the financial world in the years to come.

Best Vietnamese ETF and Fund to buy through an international broker

If you want to invest in the Vietnam stock market as a foreigner living in Vietnam or an investor from abroad, you can find ETFs. There are a few Vietnam ETFs that are listed on some of the largest and well-known stock exchanges in the world. For many investors outside of Vietnam, they can buy many prominent Vietnam ETFs listed on the New York Stock Exchange, London Stock Exchange, or Hong Kong Stock Exchange.

VanEck Vectors Vietnam ETF (VNM): VanEck is US investment management firm created more than 70 years ago. They are owning shares of Vingroup, Vinhomes, Vietnamese banks, F&B brands, manufacturers, etc … that provide real exposure on the Vietnam market.

VinaCapital Vietnam Opportunity Fund (VOFL)

Vietnam Enterprise Investments (VEIL)

Best Vietnamese stocks to Buy & Invest right now

The three biggest sectors on the Vietnamese stock market are Finance, Real estate, and Retail.

Vingroup (stock code: VIC)

Vietcombank (stock code: VCB)

Mobile World Investment Corporation (stock code: MWG)

Final thought

Investing early is the key as this allows returns to compound over a long period of time, which eventually results in a huge pot of savings at the end of the term. Following the footsteps of successful investors such as Warren Buffett, Peter Lynch, and Charlie Munger, could also be a worthwhile task for an expat.

There’s a lot to consider when you’re choosing the right investment. Reach out to us now and know how we can facilitate your investment journey. Fill in the form below.