Frequently Asked Questions
Frequently Asked Questions on Trading Vietnamese Stocks
Yes. Unlike several years ago, most brokerage companies have internet trading platforms and you can use the internet to place buy and sell orders. You can also withdraw money from the account using the internet.
What kind of orders can you place?
The usual limit orders, ATO (at the open) and ATC (at the close) orders are common to all. Most internet trading platforms allow you to place GTC orders as well.
Can you open an account without traveling to Vietnam?
Yes, you can open a trading account without needing to set foot in Vietnam. You can mail/fax the account opening forms to Vietnam. However, you will be required to authorize the brokerage firm to open a trading and capital contribution account on your behalf.
Can you have more than one stock account?
No. You can only have one stock account at any given time.
Can you trade using margin?
Margin lending is possible but the interest rates are very high and calculated monthly. Annualized interest rates can go up to more than 15%/year.
Any language issues?
Many stock brokers can speak foreign languages like English, Chinese and Japanese. However, financial reports and communications to shareholders are written in Vietnamese except for some companies. Please refer to our translation on reading Vietnamese financial reports.
What is the opening hours for the stock exchange?
Since 5 Mar 2012, the Vietnamese exchanges (HOSE/HASTC) have implemented afternoon trading sessions. The trading hours (in local Vietnamese time) are:
Morning session : 09h00 – 11h30.
Break time : 11h30 – 13h00.
Afternoon session : 13h00 – 14h15.
What are the markets available for trading?
There is the main HOSE market, the HASTC market for smaller capitalization stocks, the UPCOM market for the more liquid over-the-counter stocks and a OTC market for unlisted stocks. However, if you trade online, the OTC market will not be available.
What taxes do I have to pay?
There is a 5% tax on the dividends that you receive. In addition you have to pay capital gains taxes. You can choose among two ways of paying capital gains taxes. You can either:
- pay 0.1% of the value of each transaction, or;
- pay 25% on annual profit at the end of the year.
Obviously, option 1 is much easier to calculate so this is the option that most investors choose. Appended below is a document by Deloitte on the most recent tax for corporations and businesses (2012).
Vietnamtax : Deloitte, “Vietnam international Tax Highlights 2012″