Vietnam Securities Companies
As of February 2004, thirteen companies have been licensed by both the
State Securities Commission and Ho Chi Minh City Stock Trading Center. Of
these, nine have capital of VND43bn (US$2.73m) or more and have been
licensed to conduct a full range of securities business including brokerage,
advisory, fund management, proprietary trading and underwriting. Saigon
Securities Incorporation, Hai Phong Securities Joint Stock Company and EAB
Securities Company have chartered capital ranging from VND20-22bn
(US$1.27m-US$1.4m) while Mekong Securities Joint Stock Company are
capitalized at VND6bn (US$0.38m). Neither company is licensed to conduct
proprietary trading or underwriting.
Six of Vietnam’s securities companies were licensed ahead of Ho Chi Minh
City Stock Trading Center’s opening in July 2000.
All 4 state-owned commercial banks and Vietnam’s largest State-owned
Insurance Company established their wholly owned subsidiaries, consisting of
Bank for Investment & Development of Vietnam, Industry and Commerce Bank of
Vietnam, Bank for Agriculture and Rural Development, Bank for Foreign Trade
of Vietnam and Bao Viet Insurance Company. The securities arm of the Bank
for Investment and Development of Vietnam and the Bank for Agriculture and
Rural Development are the largest ones with chartered capital of VND100bn
Asia Commercial Bank Securities Company and Thang Long Securities Company
are wholly–owned subsidiaries of joint stock banks - Asia Commercial Bank
(which is the largest and considered to be amongst the most progressive of
Vietnam’s 33 joint stock banks) and Military Bank (which is majority
controlled by the army).
First Securities Company is a joint stock company whose major shareholders
include Becamex - an enterprise co-owned by the People’s Committee of Binh
Duong Province and several business partners. (Binh Duong Province, some
40km from Ho Chi Minh City, is home to Vietnam’s largest concentration of
industrial and manufacturing enterprises).
Saigon Securities Incorporation is a privately owned joint stock company
founded by Vietnam’s Pan Pacific and Saigon Business Consultancy and is
considered the most ‘internationally minded’ of the licensed securities
companies. At the end of 2003, SSI’s reported share of order-matching
turnover on the Ho Chi Minh City Stock Trading Center was just over 23%; a
couple of percentage points ahead of Bao Viet.
During 2003, there were 4 more companies entered the market, including Ho
Chi Minh Securities Company (‘HSC’) which is largely controlled by Ho Chi
Minh Investment Fund for Urban Development (HIFU), Eastern Asia Bank
Securities Company Eastern Asia Bank - a joint stock bank where HCMC
Communist Party Economic Committee has major shares and influence and two
other companies in the north, Hanoi-based Mekong Securities Company and Hai
Phong Securities Company whose headquarter bases in Hai Phong - the second
largest city in the north.
Vietnam has thirteen registered securities firms but only four of them - SSI,
BVSC, ACBS and BSC - dominate brokerage business, accounting for 71% of all
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