Company commemorates 25 years of expansion, plans market enhancement amid changes

HOSE, in its 25 years of existence, has evolved from a small exchange to a significant capital source, adapting to market fluctuations and setting its sights on an upgrade to enhance Vietnam’s financial status.

The commencement of the HCMC Securities Trading Center in July 2000 symbolized a pivotal moment in Vietnam’s economic landscape, laying the groundwork for what would eventually become the HCMC Stock Exchange (HOSE). The inaugural trading session featured only two stocks – REE (Refrigeration Electrical Engineering Corporation) and SAM (Saigon Cable and Telecom Material JSC) – marking the nascent stages of a burgeoning industry that would change the trajectory of Vietnam’s economy.

While HOSE initially listed a meager five stocks and four bonds in its formative years, the exchange has undergone a remarkable transformation. By the close of 2024, HOSE’s stock market capitalization had skyrocketed from VND1 trillion ($38.9 million) to an impressive VND5.2 quadrillion ($202.2 billion), representing a substantial 50.95 percent of the nation’s economic output.

Recalling the early days of the stock market, investor Thuy Tien reminisces about the stark contrast to today’s digital trading environment. In the early 2000s, trading was cumbersome, with handwritten order slips and manual processing by brokerage staff. Trading occurred only three days a week for two hours each day, culminating in a single daily matching at 11:00 a.m. The instant, high-volume online trading that is now commonplace was a far-off concept in those rudimentary beginnings.

Over the past 25 years, HOSE has flourished into Vietnam’s largest centralized stock market, attracting listings from the country’s top enterprises and securing its prominence in Vietnam’s securities market. It has facilitated capital mobilization, played a pivotal role in the equitization process, and supported the nation’s economic restructuring endeavors.

During the economic restructuring phase from 2010 to 2015, the amount of capital raised by HOSE-listed companies increased fivefold compared to the previous period. Over 80 percent of listed companies experienced a significant boost in their charter capital, enabling them to invest in new projects, expand operations, and enhance their overall competitiveness.

Despite its growth, the stock market has weathered fluctuations over the years, from a peak of 1,170.76 points in late 2007 to a low of 235 points in 2009. The market endured further challenges during the Covid-19 pandemic, with the VN-Index dropping to 649 points in March 2020 before rebounding to reach highs of 1,500 points in late 2021 and early 2022.

In response to market challenges, HOSE has tackled overload issues with its trading system and cracked down on market manipulation to uphold transparency and integrity. Regulatory authorities have implemented stricter measures to combat illicit activities and ensure sustainable growth in Vietnam’s stock market.

As HOSE celebrates 25 years of growth, it stands at the cusp of an upgrade to reinforce Vietnam’s financial landscape and strengthen its position in the global market.