According to FiinRatings, factors affecting the profits of securities companies include liquidity risk, proprietary trading, interest rates, and exchange rates.
According to the Ministry of Finance (MoF), corporate bonds are mostly purchased by credit institutions and securities companies, who often then sell them on to individual investors, resulting in the volume of bonds held by these investors standing at 32.6 per cent. In order for the bond market to develop transparently and effectively, the MoF will report to the National Assembly on amending a number of provisions in the Law on Securities and the Law on Enterprises.
A number of securities companies have increased their charter capital recently. Analysts have said that the industry has become increasingly fragmented and fiercely competitive, as profitability has improved dramatically as the market has grown.
Securities companies expect increases in deposit interest rates to slow in the third quarter of 2022 because of low demand for capital mobilization. The pressure to raise deposit rates will increase by the end of the year, however, after the State Bank of Vietnam (SBV) opens up credit space for commercial banks and especially when the ratio of short-term capital for medium and long-term loans falls from 37 to 34 per cent, under a Decision from the SBV to take effect on October 1.
According to analysts and representatives from a number of securities companies and investment funds, the prospects for Vietnam’s stock market this year are bright, with cash flow continuing and account numbers nearing 10 million. The market will remain an attractive investment channel in the long term.
There are currently about 50 securities companies licensed to take part in the corporate bond market. Those with strong support from commercial banks hold a market share of more than 50 per cent.
