An overview of the Aqua City project developed by Novaland in the southern province of Dong Nai. Novaland is among companies whose capitalisation is valued at billions of dollars on the market (Photo: novaland.com.vn) The other two high rates recorded were in August 2018 at 84.57 percent andMarch 2018 at 83.08 percent.
Including the government bond market and corporate bond market, the value of Vietnam’sentire stock market by the end of 2020 exceeded 110.64 percent of GDP, this isalso the highest rate ever recorded.
New cash flow continuously pouring into the market since the second half of2020 has boosted liquidity. December 2020 and January 2021 were two monthswitnessing record matching value, of more than 250 trillion VND (10.8 billionUSD) and more than 300 trillion VND on the Ho Chi Minh City Stock Exchange(HoSE), respectively.
However, skyrocketing liquidity has far exceeded market forecasts, leading tofrequent congestion in many sessions, causing a lot of trouble for investorsand affecting the quality of the market.
The sudden increase in liquidity is unpredictable, causing undesiredinterruptions in trading, according to HoSE.
To tackle this issue, the State Securities Commission said it was speeding upthe implementation of a new information technology system for the entire stockmarket, known as KRX.
The Vietnamese stock market has experienced a year of spectacular recovery fromthe bottom caused by the COVID-19 crisis, a trend that is in parallel with mostof the major stock markets in the world. Since the bottom at the end of March2020, the VN-Index has increased by nearly 50 percent.
So far, the Vietnamese stock market recorded 38 companies whose value reachesbillions of dollars. Vingroup is valued at 15.95 billion USD in marketcapitalisation. It is followed by the State-owned Vietcombank (VCB), with 15.82billion USD. Third place belongs to Vinhomes (VHM) with 14.52 billion USD.
Other notable names include Vinamilk with 9.52 billion USD, Bank for Investmentand Development of Vietnam (BID) with 7.62 billion USD, PetroVietnam Gas JSC(GAS) with 7.43 billion USD, the Airports Corporation of Vietnam (ACV) with 7.03billion USD, and Hoa Phat Group (HPG) with 6.56 billion USD.
The Masan family is no less competitive as there are also three representatives,Masan Group (MSN) with 4.61 billion USD, Masan Consumer Holdings (MCH) with 2.92billion USD and Masan High-Tech Materials Corporation (MHT) with 1 billion USD.
Some unfamiliar names also appear in the billion-dollar business group, withsurprises in value. Most notably ThaiHoldings (THD) valued at 3.06 billion USD,became the third largest real estate company in the market by marketcapitalisation after Vinhomes and Novaland, the latter of which is valued at 3.41billion USD.
Another real estate company has also entered the group, namely Phat Dat RealEstate Development Corporation (PDR), valued at 1.08 billion USD.
THD shares have risen 10 times since the end of November last year, nowreaching 201,000 VND. While PDR has also nearly tripled from August last year,standing at 63,000 VND./.
VNA
