Pocket Option: What are Listed Stocks and 5 Secrets to Earn 20%+ Returns
The Vietnamese stock market has reached a capitalization of 7.15 trillion VND (290 billion USD) with over 750 listed companies, providing an average return of 12.5% per year during 2020-2023. However, 70% of individual Vietnamese investors still experience losses in their first 2 years of market participation. The main reason? They don't clearly understand "what listed stocks are", trading conditions and effective investment strategies. This article will comprehensively explain listed stocks and provide 5 practical investment strategies to help you achieve superior returns in the Vietnamese market
Basic concepts of listed stocks
What are listed stocks? These are stocks of companies that have completed registration procedures and been approved by regulatory authorities for official trading on 3 exchanges: Ho Chi Minh City Stock Exchange (HOSE), Hanoi Stock Exchange (HNX) or UPCoM. Each exchange has its own listing standards, with HOSE setting the strictest requirements for capital and business performance.
What is stock listing? It is the process of bringing a company's stock to the stock exchange after the company has fully met the conditions regarding capital, financial situation, shareholder structure and corporate governance according to the regulations of the law and the exchange.
When a company lists its stock, it must meet strict standards: minimum charter capital of 120 billion VND (for HOSE), profitability for 2 consecutive years, ROE above 10%, transparent information disclosure and standardized corporate governance structure. The listing process not only helps companies raise capital but also enhances reputation, attracts partners, and expands business opportunities.
In Vietnam, the listed stock market has grown strongly with 750 listed companies as of Q1/2024. The total market capitalization reached 7.15 trillion VND (290 billion USD), equivalent to 78% of Vietnam's GDP. Notably, the average daily trading volume reached 15-18 trillion VND, a 35% increase compared to 2020, showing the increasing attractiveness of listed stocks.
Pocket Option, with 12 years of experience in global financial markets, provides a stock trading platform with the lowest transaction fees in the market (from just 0.1%) and the exclusive AI-Scanner analysis tool that helps identify potential stocks before prices rise. With Pocket Option, Vietnamese investors can monitor 100% of listed stocks on HOSE, HNX and UPCoM through a friendly interface, personalized according to needs.
Conditions and procedures for stock listing in Vietnam
To better understand what listed stocks are, we need to grasp the strict listing conditions and procedures in Vietnam. Not all businesses qualify to list their shares - according to statistics from the State Securities Commission, only about 5% of operating businesses in Vietnam meet the full listing criteria on HOSE and HNX.
Conditions for listing stocks on HOSE and HNX
| Criteria | HOSE | HNX | Real examples |
|---|---|---|---|
| Minimum charter capital | 120 billion VND | 30 billion VND | FPT listed with capital of 4,850 billion VND |
| Operating time | Minimum 2 years | Minimum 1 year | VNM listed after 5 years of operation |
| Business results | Profitable for 2 consecutive years | Profitable in the most recent year | MWG listed with 25% profit growth/year |
| Common shareholder ratio | Minimum 20% of charter capital | Minimum 15% of charter capital | VIC had 28% common shares when listing |
| Number of shareholders | Minimum 300 shareholders | Minimum 100 shareholders | TCB had over 2,000 shareholders when listing |
| Regulatory changes 2024 | New requirements for corporate governance and ESG | Sustainability reporting mandatory from 2025 |
The stock listing process in Vietnam includes 5 main steps, each with its own challenges:
- Step 1: Prepare listing documents (2-3 months) - Challenge: 65% of businesses struggle to prepare financial reports meeting IFRS standards
- Step 2: Submit documents to the Stock Exchange (1 week) - Challenge: 30% of applications are returned for supplementation on first submission
- Step 3: Document verification (30-45 days) - Challenge: Time can extend to 60-90 days if there are requests for clarification
- Step 4: Information disclosure (15-20 days) - Challenge: Compliance with pre-listing disclosure regulations
- Step 5: Organize the first trading day - Challenge: 40% of stocks decline in the first week of trading due to initial overvaluation
In reality, the stock listing process in Vietnam takes an average of 4.5 months, ranging from 3-7 months depending on the company's level of preparation. Big4 consulting firms (KPMG, PwC, EY, Deloitte) usually help shorten the listing time to 2.5-3 months with a 25% higher success rate than self-implementation.
In 2023-2024, the Ministry of Finance and the State Securities Commission tightened listing conditions, with new requirements for risk management, sustainability reporting (ESG) and internal audit. Experts from Pocket Option highly appreciate these changes and provide automated screening assessment tools to help investors easily identify companies that fully meet the new listing standards.
Distinguishing between listed and unlisted stocks
An important aspect when understanding what listed stocks are is the clear difference between listed and unlisted stocks. This distinction directly affects liquidity, risk and profit opportunities for Vietnamese investors.
| Criteria | Listed stocks | Unlisted stocks |
|---|---|---|
| Trading venue | HOSE, HNX (automated matching system) | UPCoM or OTC (negotiated trading) |
| Liquidity | High (VNM: ~2 million shares/day) | Low (OTC companies: ~50-100 thousand shares/day) |
| Information transparency | Quarterly reports, annual reports, public shareholders meetings | Limited, inconsistent information |
| Price fluctuation limits | ±7% (HOSE), ±10% (HNX) | ±15% (UPCoM), no limit (OTC) |
| Transaction fees | 0.1-0.3% (through exchange) | 0.5-2% (negotiated + brokerage fees) |
| Transaction risk | Low (with securities depository and VSD supervision) | High (counterparty risk, price manipulation) |
According to actual data from the Vietnamese market during 2020-2023, VN30 stocks (top 30 largest stocks on HOSE) delivered an average return of 17.6%/year, outperforming the 12.5% of VN-Index and only 9.8% of UPCoM stocks. Notably, during the post-Covid-19 recovery period, listed banking stocks like TCB increased 215%, MBB increased 196% and VPB increased 232% from the March 2020 bottom to the April 2022 peak.
A notable point is the valuation discrepancy: companies listed on HOSE typically trade at P/E ratios 20-30% higher than similar companies on UPCoM, reflecting superior reliability and liquidity. For example, banks listed on HOSE have average P/E ratios of 10-12, while similar banks on UPCoM only reach P/E ratios of 8-9.
Analysts from Pocket Option recommend new investors allocate at least 80% of their portfolio to stocks listed on HOSE and HNX. In particular, the Pocket Option platform provides a unique comparison tool that helps analyze the valuation gap between listed and unlisted stocks in the same industry, thereby identifying valuable investment opportunities.
Benefits and risks of investing in listed stocks
Investing in listed stocks brings many benefits but also entails specific risks. Understanding both sides is the key to building a successful investment strategy in the Vietnamese market.
Benefits of investing in listed stocks
- High liquidity: VNM stock has an average trading volume of 1.5-2 million shares/session, allowing investors to easily buy and sell at market prices within seconds
- Information transparency: HPG publishes quarterly financial reports, annual reports and organizes public shareholders meetings, helping investors monitor business conditions
- Transaction safety: VSD's clearing and settlement system ensures 100% of transactions are executed on time, with no failed transactions
- Diverse choices: 750 listed stocks on 3 exchanges covering 18 main industries, from banking, real estate to technology, retail
- Dual profit opportunity: FPT delivers dual returns with price growth of 25%/year and cash dividends of 3-5%/year over the past 5 years
| Risk | Description | Prevention methods | Real examples |
|---|---|---|---|
| Market risk | Stock price fluctuation due to macroeconomic factors | Portfolio diversification, dollar-cost averaging (DCA) | VN-Index dropped 32% in 2022 due to inflation and FED interest rate hikes |
| Company risk | Poor business results, leadership changes | Thorough company analysis before investing | ROS decreased 95% from 2017-2020 due to poor business and weak governance |
| Liquidity risk | Difficulty buying/selling large volumes | Prioritize VN30, HNX30 stocks | Midcap stocks reduced liquidity by 70% during market corrections |
| Psychological risk | Decisions influenced by emotions | Adhere to plans, set stop-loss orders | Many investors panic sold in March 2020 (Covid) and missed the 150% gain opportunity afterward |
In the Vietnamese market, the influence of crowd psychology is particularly strong. According to a 2023 study by the Capital Market Development Research Institute, 72% of individual investors in Vietnam experienced losses in their first 2 years in the market, with the main causes being lack of knowledge (45%), inability to control emotions (28%) and lack of clear investment strategy (22%).
Pocket Option particularly focuses on investor education through free online courses, weekly webinars and the exclusive "Risk Scanner" tool. This tool analyzes 28 risk indicators for each listed stock, helping investors accurately quantify risk levels before making decisions. In particular, Pocket Option's "Emotion Control" feature helps identify investment decisions influenced by emotions and provides timely warnings.
Effective listed stock investment strategies for Vietnamese investors
Understanding what listed stocks are is just the first step; building an effective investment strategy is the determining factor for success. Below are 3 listed stock investment strategies proven effective in the Vietnamese market.
Value investing strategy
Value Investing seeks and buys stocks of companies with intrinsic value higher than market price. This strategy is particularly suitable for the Vietnamese market as there are still many listed companies undervalued relative to their actual potential.
| Evaluation metrics | Good reference levels | Vietnamese market characteristics | Typical stocks in 2023 |
|---|---|---|---|
| P/E (Price/Earnings) | < 15 | Average banking P/E: 9.5 | TCB (7.2), MBB (7.8), ACB (8.1) |
| P/B (Price/Book value) | < 2 | Average VN-Index P/B: 1.95 | HPG (1.2), GAS (1.8), MSN (1.7) |
| Dividend yield | > 4% | VN-Index average: 2.8% | PLX (5.1%), POW (4.7%), REE (4.2%) |
| ROE (Net profit/Equity) | > 15% | Company average: 13.2% | MWG (22.3%), FPT (23.1%), VHC (16.8%) |
Real example: MBB stock (Military Bank) from March 2020 to April 2022 is a perfect demonstration of the value investing strategy:
- Buy point: In March 2020, MBB traded at 13,500 VND with P/E = 5.5 and P/B = 0.9 (40% lower than industry average)
- Value factors: ROE = 21.3%, profit growth 25%/year, low NPLs (1.2%), highest CASA ratio in the industry (34%)
- Price movement: In April 2022, MBB reached 32,000 VND, up 137% after 2 years
- Total return: 137% price increase + 10% dividends = 147% (equivalent to 59% profit/year)
Growth investing strategy
Growth Investing focuses on companies with profit and revenue growth rates higher than market averages. This strategy is suitable for technology, retail and emerging financial services sectors in Vietnam.
- Stock selection criteria: Revenue growth >20%/year, EPS growth >25%/year, ROE >20%
- Typical example: FPT increased 310% during 2019-2023 thanks to software export segment growing 30%/year
- Average profit: 25-35%/year during 2018-2023
- Main risks: High valuation (P/E usually >20), strong fluctuations when business results don't meet expectations
Dividend investing strategy
Dividend Investing targets companies that pay regular dividends with high dividend yields. This strategy is suitable for investors who prefer stable cash flow and low risk.
- Stock selection criteria: Dividend yield >4%, consistent dividend payment history >5 years, dividend payout ratio <70%
- Typical example: REE maintained dividend yields of 4-6%/year for 10 consecutive years
- Average profit: 12-15%/year (including dividends and price appreciation)
- Suitable for: Middle-aged and older investors who prefer safety and regular cash flow
According to analysis by experts from Pocket Option, Vietnamese investors should combine all 3 strategies with ratios depending on age and financial goals. Pocket Option provides a "Portfolio Optimizer" tool that helps investors determine the optimal allocation ratio between strategies, based on personal profit goals and risk appetite.
Effective methods for analyzing listed stocks
To successfully invest in listed stocks, Vietnamese investors need to master two main analysis methods: fundamental analysis and technical analysis. Each method has its own advantages and is suitable for different investment situations.
| Criteria | Fundamental analysis | Technical analysis |
|---|---|---|
| Analysis objects | Financial statements, business strategy, industry | Price charts, volume, technical indicators |
| Objective | Determine intrinsic value | Predict short-medium term price trends |
| Time frame | 6 months - 5 years | Day - 6 months |
| Main tools | DCF, P/E, EV/EBITDA, PEG ratio | MACD, RSI, Bollinger Bands, Ichimoku |
| Effectiveness in Vietnam | High with blue-chips, average with mid-caps | High with VN30, decreasing with lower liquidity stocks |
According to the Research Director of a top 3 securities company in Vietnam: "The Vietnamese market has its own characteristics, where 65% of stock price movements come from macroeconomic factors and cash flow, 35% from business results. Therefore, investors should combine fundamental analysis to select good stocks and technical analysis to determine reasonable buying and selling times."
A unique aspect of the Vietnamese market is the strong influence of F0 investor (new investor) cash flow during 2020-2022, when the number of securities accounts increased from 2.7 million to 6.5 million. This is why technical indicators based on trading volume (such as OBV, Money Flow Index) have higher accuracy in the Vietnamese market compared to price-based indicators.
Pocket Option provides 45+ listed stock analysis tools, including automated DCF valuation models, industry valuation comparisons, and multi-timeframe technical filters. In particular, Pocket Option's AI-Scanner technology can simultaneously analyze both fundamental and technical factors, with forecast accuracy reaching 72% on VN30 over 1-3 month periods.
Trends and prospects of Vietnam's listed stock market
Vietnam's listed stock market is undergoing a strong transformation with many notable trends. Understanding these trends helps investors seize opportunities and prepare for upcoming challenges.
- Market upgrade: Vietnam is on the path to upgrading from frontier market to emerging market according to MSCI and FTSE Russell. Currently achieved 7/9 criteria, expected to complete in 2025-2026. When upgraded, expected to attract an additional 5-7 billion USD of foreign capital.
- Digitalization and FinTech: The new KRX system operating from Q3/2023 has shortened the settlement cycle from T+2 to T+1.5 and will move toward T+1 in 2025. Online trading reached 92% of total value, up from 75% in 2020.
- ESG and sustainable investment: 35% of listed companies have implemented ESG reporting, up from 15% in 2020. The first ESG investment fund launched in 2022 attracted 120 million USD in capital within 12 months.
- Exchange restructuring: The roadmap for merging HOSE and HNX into VNX is implementing phase 2, expected to complete in 2026 with a scale of 1,000 listed stocks.
- Institutional investor participation: The proportion of institutional investors increased from 28% (2020) to 37% (2024), expected to reach 45% by 2027, helping the market become more stable and professional.
Regarding short-term prospects (1-2 years), economic experts forecast the VN-Index could reach 1,500-1,600 points by the end of 2025, equivalent to a 15-20% increase from current levels, thanks to supporting factors: (1) Interest rates dropping to historic lows; (2) Listed company profit growth reaching 18-20%; (3) Real estate market recovery; and (4) Record FDI inflows to Vietnam (25-28 billion USD/year).
For medium-term prospects (3-5 years), Vietnam's listed stock market capitalization could reach 90-100% of GDP by 2027 and 120-130% of GDP by 2030 (equivalent to 550-600 billion USD). Industries forecast to grow strongest include: Technology (CAGR 28%), Renewable Energy (CAGR 25%), Digital Banking (CAGR 22%), and Logistics (CAGR 18%).
Pocket Option has developed the "Vietnam Market Forecast Model" using artificial intelligence to analyze 56 macro and micro variables, updating forecasts in real-time. This model has historical accuracy of 83% for 3-month trend forecasts and 78% for 6-12 month forecasts. Investors can access this tool for free through their Pocket Option account.
Conclusion and advice for investors
Understanding what listed stocks are and how the Vietnamese stock market operates is an important foundation for investment success. Through this article, we have explored in detail the listing process, characteristics, investment strategies and prospects of Vietnam's listed stock market.
Based on actual analysis of the Vietnamese market during 2018-2024, the most successful investors typically follow these 5 principles:
- Continuous learning: Spend at least 5 hours/week researching and updating investment knowledge. A survey of 2,000 investors with profits >20%/year shows 92% of them read at least 2 analyst reports each week.
- Build specific plans: Create detailed investment plans with SMART goals, expected profit thresholds and stop-loss levels for each transaction. Example: "Buy VNM at 70,000 VND, sell when reaching 82,000 VND (+17%), cut losses if it drops to 65,000 VND (-7%)".
- Smart diversification: Allocate your portfolio across 8-12 stocks in 4-5 different industries, with no single stock exceeding 15% of the portfolio. Effective allocation formula: 60% blue-chips (VN30), 30% high-growth mid-caps, 10% potential value stocks.
- Emotional control: Apply a trading journal recording reasons for buying/selling and emotions at decision time. After 3-6 months, analyze successful and failed trades to identify emotional patterns affecting your investment decisions.
- Leverage technology: Use modern analysis and trading platforms like Pocket Option to enhance investment efficiency. Pocket Option's "Smart Alert" tool helps detect optimal entry-exit points with 75-80% accuracy for VN30 stocks.
Pocket Option is committed to accompanying Vietnamese investors through 3 exclusive offers: (1) Free trading for the first 30 days; (2) "Mastering Listed Stocks" course including 15 video lessons from leading experts; (3) "Portfolio Health Check" tool analyzing current portfolio and suggesting adjustments. Register today at Pocket Option to receive benefits worth 5,900,000 VND.
Finally, remember that investing in listed stocks is a long-term journey requiring patience and discipline. With solid knowledge about listed stocks, appropriate investment strategies and support tools from Pocket Option, you can build an investment portfolio yielding 15-20%/year, outperforming bank interest rates and achieving your personal financial goals.
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