Vietnam, the land of the Ascending Dragon, is predicted to reach a GDP of over 6.5 percent this year. This is mainly because of several beneficial free trade agreements and FDIs it has attracted. As per reports, the GDP already registered a 3.32 percent growth in the first quarter of 2023. The Business community in collaboration with the Government of Vietnam have implemented solutions to promote domestic production and boost exports from the country.
Vietnam has been on a growth trajectory ever since its ‘Doi Moi’ Reforms in 1986 and its acceptance into the World Trade Organization in 2007. The Socialist-oriented market economy is consistently pushing for a decentralised and deregulated economy. The Ministry of Industry and Trade of the Socialist Republic of Vietnam has reportedly established about 2,787 joint ventures with private o rganisations, domestically and internationally since 1986. The emerging manufacturing powerhouse has witnessed huge deluge of investments coming from foreign organisations. As per reports, in 2022, Vietnam saw a GDP growth of 8.02 percent with FDI contributing USD 22.4 billion in the same year. According to the General Statistics office, the electronics industry of Vietnam is considered to be one of the biggest in the world, growing from USD 5.8 billion in 2010 to USD 70 billion in 2017.
The investment banking sector and the stock brokerage market sector have played a major role in the manufacturing and export boom that Vietnam has been witnessing in the past one decade. This sector is playing a vital role in converting Vietnam into a high-income country by 2045 with an expected annual average rate of 5.9 percent. The investment banks and the stock brokerage market are tapping into the domestic as well as the foreign entities.
In terms of stock brokerage market share, VPS Securities (JSC) is proud to be the leader on all four exchanges: HNX, HOSE, UPCOM, and Derivatives for 9 consecutive quarters starting from Jan 2021 till date. As of the first quarter of 2023, VPS continues to lead the stock brokerage percentage on all four exchanges (HOSE, HNX, UPCOM, and Derivatives). Currently, VPS has the highest market share on the Ho Chi Minh Stock Exchange (HOSE) at 15,67% and the Hanoi Stock Exchange (HNX) at 25%. VPS also contributes 25.54% of total marketshare on the UPCOM exchange as the leader, and leads the Derivatives markets at 61.54%. This year, VPS Securities won the title for ‘Best Investment Bank in Vietnam 2023’ from World Business Outlook for its resilient performance and its steadfast commitment towards delivering a global experience for its clients and stakeholders.
Laying the Alternative to China in Asia
VPS Securities Joint Stock Company began in 2006. In 16 years, it established 3 branches and 3 transaction offices with the head office at Hanoi. It is a joint stock company operating under the provisions of the Enterprise Law and the Securities Law.
VPS primarily caters to businesses and investors with a portfolio that includes: stock brokerage, financial services, investment banking and more. Over the years, VPS Securities has proven its expertise as one of the most reliable financial intermediary. Its core business comprises of Institutional Brokerage, Investment Banking, Research, Retail brokerage, Private Banking and Financial services. Its financial services include capital arrangement, securities underwriting, mergers and acquisitions (M&A), consulting on business valuation, corporate restructuring, and debt management.
In 2021, VPS Securities had been recognized as one of the best bond dealers and is considered as one of the best institutional customer consulting unit in Vietnam with the award for ‘Best Customer Experience Securities Firm’ in the very same year. The securities brokerage firm was also authorized by the State Securities Commission to increase its charter capital from VND 3,500,000,000,000,000 (three thousand, five hundred billion VND) to VND 5,700,057,000,000. As of 2021, its total assets reached over VND 26,856 billion (up over 67 percent compared to 2020). Its profit before tax reached over VND 966 billion (up over 59.6 percent compared to 2020). Its equity ownership also increased to over 7,820 billion dong. In 2022, VPS garnered a revenue of 8,668,574,641,204 VND. It registered a profit of VND 1,011,686,727,794 with 570,005,700 of total outstanding shares (based on the audited financial statements in 2022).
VPS wants to be known for its creativity & customer understanding. Ngoc Tran, Director of Investment Banking Services shares VPS’s ambition and goals for the people of Vietnam, “We are opening up opportunities for easy access to products and services in the fields of investment, finance. We have developed a diverse ecosystem of products, serving the different financial needs of customers. We have made huge investments in training and human resource development to continuously improve our team and their expertise with the latest technology. We are constantly evolving to meet the growing needs of our clients and partners today and for the future.”
Secret to Happy Clients is Happy Employees
With over 2,500 employees, VPS Securities is already popular as one of the best places to work for in Asia. It has invested extensively into its 5-star rated working facilities. It has developed a long-term human resource development policy, giving priority to good employees who are trained domestically and internationally. The management have been specifically groomed to inculcate a culture of teamwork and team development. The working methods have been developed in such a way that it supports continuous innovation processes at the organizational level.
At VPS, employees have access to personlized learning programmes through several online training solution, Elearning, live classroom sessions, workshops, self-study activities, mentoring sessions, competitions and many more. The firm also has its own talk show series where it invites several outstanding achievers to share their success stories. Internal competitions like ‘The Founder +’, ‘Innovatio’ and ‘Speak up’ promote new business channel opportunities, new business ideas and critical thinking among the employees.
Ngoc Tran explains, “At VPS, we are highly committed to our community and are proud to support them in every circumstances. During the COVID-19 pandemic, we implemented many support campaigns for our clients, partners, households, frontline workers and even the local government authorities. I am proud of our team for their efforts during the pandemic. Our charity groups crossed several kms to reach the affected families in some of the most under-privileged regions of the country. On behalf of The Board of Management, I extend a big salute to the employees of VPS who contributed several support items for our less fortunate families.”
In 2022, VPS was honoured with ‘Gender Equality at Work’ Champion award under the ambit of the Women’s Empowerment Principles Awards (WEPs) 2022 by the United Nations Agency for Gender Equality and Women empowerment. Ngoc Tran adds, “We are an organization that always respects diversity and nurtures each individual’s creativity to help every member of the team.”
Vietnam has a thriving youth population that comprises 25 percent of the total population. VPS has taken special initiatives to cater to the growing demands of the future of the nation. The organization has collaborated with several banking universities, Academy of Finance, National Economics University and others to impart proper career guidance programs for the students. VPS participates and conducts guest lectures, job fairs and even sponsors training sessions to enter the securities market or to begin their entrepreneurial venture.
Maintaining the Lead through Innovations
Being the leader in securities trading on HNX, HOSE, UPCOM and being the highest market share holder in the derivatives segment, VPS Securities JSC has maintained a steadfast focus on improving its internal governance, risk management strategy, operational efficiency and financial capacity.
VPS Securities continues its commitment towards sustainable business, while optimally preserving capital & taking advantage of market opportunities for garnering maximum profit for its clients & partners. VPS Securities is investing heavily in improving its offline and online customer experience platform. Ngoc Tran concluded, “We are constantly working on developing new initiatives to meet the diverse needs of the people in Vietnam. With more emphasis on customers and new market entrants, VPS is turning itself agile and accomplishing the goals, one financial year at a time.”
Article by Ujal Nair
