Vietnam is the Next Foreign Investment Powerhouse in Asia:

Vietnam is turning out to be the best option for manufacturers who are looking for an alternative to China. This has led to a boom in foreign direct investments in the country, benefitting many of the investment banks.

Vietnam, the land of the Ascending Dragon, is predicted to reach a GDP of over 6.5 percent this year. This is mainly because of several beneficial free trade agreements and FDIs it has attracted. As per reports, the GDP already registered a 3.32 percent growth in the first quarter of 2023. The Business community in collaboration with the Government of Vietnam have implemented solutions to promote domestic production and boost exports from the country.

Vietnam has been on a growth trajectory ever since its ‘Doi Moi’ Reforms in 1986 and its acceptance into the World Trade Organization in 2007. The Socialist-oriented market economy is consistently pushing for a decentralised and deregulated economy. The Ministry of Industry and Trade of the Socialist Republic of Vietnam has reportedly established about 2,787 joint ventures with private o rganisations, domestically and internationally since 1986. The emerging manufacturing powerhouse has witnessed huge deluge of investments coming from foreign organisations. As per reports, in 2022, Vietnam saw a GDP growth of 8.02 percent with FDI contributing USD 22.4 billion in the same year. According to the General Statistics office, the electronics industry of Vietnam is considered to be one of the biggest in the world, growing from USD 5.8 billion in 2010 to USD 70 billion in 2017.

The investment banking sector and the stock brokerage market sector have played a major role in the manufacturing and export boom that Vietnam has been witnessing in the past one decade. This sector is playing a vital role in converting Vietnam into a high-income country by 2045 with an expected annual average rate of 5.9 percent. The investment banks and the stock brokerage market are tapping into the domestic as well as the foreign entities.

In terms of stock brokerage market share, VPS Securities (JSC) is proud to be the leader on all four exchanges: HNX, HOSE, UPCOM, and Derivatives for 9 consecutive quarters starting from Jan 2021 till date. As of the first quarter of 2023, VPS continues to lead the stock brokerage percentage on all four exchanges (HOSE, HNX, UPCOM, and Derivatives).

Currently, VPS has the highest market share on the Ho Chi Minh Stock Exchange (HOSE) at 15,67% and the Hanoi Stock Exchange (HNX) at 25%. VPS also contributes 25.54% of total marketshare on the UPCOM exchange as the leader, and leads the Derivatives markets at 61.54%. This year, VPS Securities won the title for ‘Best Investment Bank in Vietnam 2023’ from World Business Outlook for its resilient performance and its steadfast commitment towards delivering a global experience for its clients and stakeholders.