FINANCIAL MANAGEMENT
VIETNAM’ S STOCK MARKET
MA2N0203 – LE THI THUY HANG
AGENDA
Introduction
Stock market
Vietnam’s stock
market
DHG PHARMA
VIETNAM
Capital: Hanoi
Largest city: Ho Chi Minh
Currency: Dong – VND
Population: 90,000,000
GDP: $358.889 billion
Exchange rate:
1USD/VND = 21,246 VND
VIETNAM (C ONT.)
Vietnam’s independence 1975
2007 Vietnam joined WTO
East Asia financial crisis 2008
STOCK MARKET

A stock market or equity market is the
aggregation of buyers and sellers (a loose
network of economic transactions, not a
physical facility or discrete entity) of stock
(also
called
shares);
these
may
include securities listed on a stock exchange
as well as those only traded privately.
STOCK MARKET ( CONT.)

A stock exchange is a place
to trade stocks. Companies
may want to get their stock
listed on a stock exchange.
Other stocks may be traded
"over the counter", that is,
through a dealer. A large
company will usually have
its stock listed on many
exchanges
across
the
world.
STOCK MARKET ( CONT.)

Exchanges may also cover other types of
security such as fixed interest securities
or indeed derivatives.
STOCK MARKET ( CONT.)

Over-the-counter market:
https://www.youtube.com/watch?v=rk2l7rS8mds
V IETNAM
 The
STOCK MARKET
Vietnam stock
market (VN-Index),
located in Ho Chi
Minh City, began
trading July 28,
2000.
 The
Vietnam stock
market opened with
only two listings:
Refrigeration
Electrical
Engineering
Joint
Stock Corporation,
and Saigon Cable
and
Telecommunication
Material Joint Stock
Company.
V IETNAM
STOCK MARKET
Vietnam-issued
bonds trade on the
Vietnam stock market,
and all securities traded
there are valued in the
Vietnamese Dong.
( CONT ’)
 All
 Trading
on
the
Vietnam
stock
market is done in
two
matching
sessions between
9:00 a.m. and 11:00
a.m.
V IETNAM STOCK MARKET ( CONT ’)

Having 2 main stock exchange since 2007:
HCM stock exchange (HOSE) and Hanoi stock
exchange (HNX).

On 10 May 2014, HOSE had 342 listings,
including 302 stocks, 2 fund certificates and
38 bonds. The total listed volume was 30.415
billion, in which 99.62% were stock shares.
The market capitalization was 310.5 trillion
VND.
V IETNAM STOCK MARKET ( CONT ’)

The State Securities Commission, formed in
1996, governs the Vietnam stock market. To be
listed on the exchange, companies must have
shown a profit for at least two years, have at
least 50 shareholders who are not company
employees and be worth at least the equivalent
of $318,000.

At the end of 2006, combined market
capitalization of both Ho Chi Minh City
Securities Trading Center and Hanoi Securities
Trading Center is 14 billion US dollars, or
22.7% GDP of Vietnam.
V IETNAM

STOCK MARKET
( CONT ’)
The Vietnam Stock Market (VN-Index )
decreased to 585.28 Index points in October
from 598.80 Index points in September of
2014. Stock Market in Vietnam averaged
580.77 Index points from 2013 until 2014,
reaching an all time high of 640.75 Index
points in September of 2014 and a record
low of 504.51 Index points in January of
2014.
V IETNAM STOCK MARKET ( CONT ’)
Table 3.1: VN Index 2013-2014 situation
Source: tradingeconomic.com
V IETNAM STOCK MARKET ( CONT ’)
Table 3.2: VN Index 2013-2014
OTC VERSUS STOCK MARKET
OTC market
Stock market
 No specific place for trading
 Specific place for trading
 Transactions:
 Transactions:
negotiation and
agreement
 Many
level price for an stock at
the same time
auction.
 A level price for an stock at
the same time
 High risky stock
 Low risky
 Using internet system for trade
 Directly
 Directly
controlled by stock
exchange
 Varied payment
centralized
controlled
stock exchange
 Clearing payment
by
DHG PHARMA PROFILE

DHG PHARMACEUTICAL JOINT – STOCK
COMPANY established in 1974 at Ca Mau
Province.

2004, DHG Pharma joint – stock

4/2013, DHG was top 3 in Vietnam
pharmaceutical company.

Stock exchange: HOSE

Field: PHARMACEUTICAL
T RANSACTION INFORMATION

On the first trading: 21/12/2006

First KLNY: 8,000,000

List price: 320

The total volume listed: 87,164,330

Fund Shares: 10,130

Circulating volume: 87,154,200

Foreigners are allowed to buy: 42,720,186 – (49.02%)

Foreign ownership: 42,710,522 – (49.01%)
FINANCIAL RATIO
 EPS = 9,459 (VND)
 P/E = 9.7 (round)
 Market capital =
8,019.1 (million VND)
 Book value = 23,262
(VND)
 P/B = 3.0 (round)
 ROA = 19.8 %
 ROE = 30.6 %
 Beta = 0.91
PRICE HISTORY

http://www.cophieu68.vn/historyprice.php?id=d
hg&lang=en

Overall, DHG Pharma is a good company
in Vietnam. Moreover DHG Pharma got
some success in the HOSE and to be one
of the good choice for investors.