4.2.

Operating situation of listed companies

4.2.1. Market size

According to statistics from the State Securities Commission over the years 2010-
2023, the number of enterprises has continuously increased. From the initial number of 2
companies in 2006, by April 2023, there were more than 400 companies on hose, 338
Companies on HNX and 856 companies on UPCoM (Figure 1). This is a high increase
from the original starting point. Enterprises have mobilized capital on the stock market
with many different types of securities, thereby promoting the development of the stock
market in the past. By 2023, about 5% of enterprises have charter capital of over VND
10,000 billion, mainly in the fields of Finance, Real Estate and Essential Consumption,
with about 26% having charter capital of over VND 1,000 billion, the rest is less than VND
1,000 billion.

1
 Vietnam's stock market is relatively large, with a total market capitalization of VND
5,448,769 billion. The number of SMEs on all three exchanges was 1583 as of December
2023. Hose is the largest exchange, accounting for more than 75% of the total market
capitalization and the largest number of listed businesses (394). HNX and UPCoM
accounted for 4.5% and 19.5%, respectively. From the above data, on hose, the number of
DNNYs tended to decrease slightly in 2023. Market capitalization is highly volatile,
growing 1.76% in July 2023 and down 0.43% in December 2023 compared to the
beginning of the year. On HNX, the number of SMEs decreased slightly. Market
capitalization increased by 3.47% in September 2023 and decreased by 0.89% in October
2023 compared to the beginning of the year.
Vietnam's stock market is developing at a relatively stable rate, reflected in the
number of SMEs and market capitalization increasing compared to 2022. Hose is the
largest stock exchange in Vietnam, focusing on large and highly capitalized enterprises.
HNX and UPCoM are exchanges for small and medium enterprises. However, the market
size is still relatively small compared to other countries in the region. Attracting more
SMEs, especially large enterprises, will contribute to improving the size and liquidity of
the market.
4.2.2. Market movements and liquidity
According to the report of the SSC, Vietnam's stock market in 2023 experienced
many fluctuations with an overall trend of declining points. The VN-Index started the year
at 1,500 points, then rose to 1,580 points in February. However, since March, the VN-
Index has continuously declined and is currently trading around 1,250 points. Large-cap
stocks were hit the hardest, with more than 50% off than at the beginning of the year. Small
and medium-sized stocks have performed better, but they are not immune to the general
pressure of the market. The main cause comes from the growth slowdown of major
economies, inflation, prolonged monetary tightening policies of major economies and
increasingly complicated geopolitical tensions in some countries and regions.
In 2023, the liquidity of Vietnam's stock market will increase compared to 2022.
The average trading volume on HoSE reached 726.2 million shares/day, up 4.60%

2
compared to 2022. The average transaction value reached VND 16,531 billion/day, an
increase of 3.58% compared to 2022. The most liquid group of stocks are large-cap stocks,
penny stocks, and bank stocks. By 2024, the liquidity of Vietnam's stock market will
decrease compared to 2023. The average trading volume on the Hose in November 2023
was only about 600 million shares/session, down 17.3% compared to 2023. The average
transaction value also decreased sharply from more than 16,500 billion VND/session to
about 15,000 billion VND/session, down 9.2% compared to 2023. The reason for the
decrease in liquidity is that: Increased bank interest rates cause the flow of money into the
stock market to decline; The world economic context is unstable due to the Russian-
Ukrainian war, high inflation in many countries; Investors are concerned about the business
situation of listed enterprises in this difficult economic context. And it is forecasted that
Vietnam's stock market liquidity in 2024 may continue to decline due to the influence of
the above factors. However, the market can also recover if the macroeconomic and business
situation of listed enterprises improves positively.
4.2.3. Capital mobilization activities
On the stock market, enterprises can issue securities to attract capital such as initial
public offering (IPO), issue new shares, pay dividends in shares, issue bonds,... In addition,
domestic enterprises can attract a large amount of capital from international investors,
which can create new resilience for enterprises. In the context of not issuing new shares,
businesses can also use the shares they hold to raise capital from securities trading
organizations as a form of mortgage loans.
In 2023, the total value of capital mobilization reached more than VND 418 trillion,
an increase of 33.5% compared to 2022. The main capital mobilization channels are stock
issuance (VND 314,464 billion, up 44.5% compared to 2022) and bond issuance (VND
103,807 billion, up 16.5% compared to 2022). The strongest groups of capital mobilization
sectors: Banks (VND 100,614 billion), real estate (VND 63,214 billion) and securities
(VND 29,320 billion). In 2024, capital raising activities are expected to continue to grow,
although the growth rate may slow down compared to 2023. With share issuance

3
continuing to be the main channel for capital mobilization and bond issuance, it is possible
to grow due to the long-term investment needs of investors.
Vietnam’s stock market is gradually developing and improving, creating favorable
conditions for enterprises to mobilize capital. The demand for investment in SMEs is
increasing, especially those with good growth potential. Therefore, enterprises need to
improve their management capacity and operational efficiency to attract investment capital
from the market.
4.2.4. Investors in the stock market
In 2023, the stock market continues to attract the active participation of investors.
According to the State Securities Commission, the number of new securities accounts
opened in 2023 reached more than 2.4 million accounts, an increase of 58% compared to
2022. Young investors (under 30 years old) account for a large proportion, demonstrating
the increasing interest of young people in the stock market. The average transaction value
in 2023 reached more than VND 23,000 billion/session, up 74% compared to 2022. The
above figure shows a marked improvement in market liquidity, indicating the active
participation of investors. The proportion of individual investors in the country increased
to 80%, dominating the market. Foreign investors still play an important role, but the
proportion has decreased slightly compared to 2022.
According to experts, Vietnam's stock market in 2024 has a lot of potential for
growth thanks to factors such as stable macroeconomics, falling bank interest rates, the
expected growth of listed enterprises and policies to support the stock market. With the
trend of investment in industry groups such as banks, real estate, oil and gas, essential
goods; the trend of value investment and long-term investment is expected to be more
popular.
4.2.5. Operation situation of listed enterprises
In 2023, the profit after tax of listed enterprises decreased compared to 2022. In
2023, the retail, consumer, banking, and securities industries are the ones with high profit
growth. The real estate, construction and materials industries are the industries with low or
reduced profit growth in 2023. In 2024, it is forecasted that securities companies will

4
recover after-tax profits of enterprises in 2024 compared to 2023. Vietnam's economy is
expected to recover in 2024, creating favorable conditions for the business activities of
enterprises. EVFTA, CPTPP,... will help Vietnamese enterprises expand export markets.
However, there will also be some challenges, such as bank interest rates (bank interest rates
are expected to increase in 2024, putting pressure on business operating costs), inflation
(inflation is expected to increase in 2024, affecting consumer purchasing power),...