The market capitalisation of Việt Nam’s stock market approximated VNĐ6 quadrillion (US$246.7 billion) in 2023, rising 9.5 per cent from and equivalent to about 62 per cent of gross domestic product (GDP) in 2022, statistics show.
Low capitalisation levels are likely to remain a credit weakness for rated Vietnamese banks as rapid loan growth will make it challenging to raise capital adequacy ratios (CARs) in the next two to three years, according to Fitch Ratings.
Market capitalisation on HoSE rose more than 42 per cent year-on-year to VNĐ5.8 quadrillion VND (US$254.83 billion) by the end of 2021, accounting for 92.77 per cent of the previous year’s GDP.
The Government’s recently-issued Decree 132/2020/NĐ-CP would help prevent transfer pricing and limit thin capitalisation to develop a healthy investment market.
Reduction in share prices of many real estate businesses due to the novel coronavirus (COVID -19) outbreak has made those firms lose thousands of billion dong in their market capitalisation value.
The dairy industry grew 0.5 per cent in market capitalisation in 2019, much lower than the average growth of 7.7 per cent of the VN-Index, according to a report issued recently by SSI Securities Joint Stock Company (SSI).
Three companies in the HNX30-Index posting losses in the third quarter were PetroVietnam Coating Corporation (PVB), Tri Viet Group (TVC) and constructor Vimeco JSC (VMC).
After two years of operation, smaller securities firms in terms of market capitalisation have beaten big players in derivatives brokerage market share.
The HCM Stock Exchange has announced the first of the year to the blue-chip VN30 Index, a basket of 30 stocks with the largest market capitalisation and highest liquidity.
The capitalisation of the Unlisted Public Company Market (UPCoM) has rocketed over 100 times to reach VND656.4 trillion (US$28.8 billion) after nine years of operation.