Pocket Option detailed guide on how to buy Vietcombank stocks in 2024
Investing in Vietcombank (VCB) stocks is a priority choice for many smart investors in Vietnam. This article provides a detailed process for buying VCB stocks, from opening a securities account to effective investment strategies and professional risk management. With knowledge from leading financial experts, you will have a solid foundation to start your profitable investment journey.
Overview of Vietcombank (VCB) Stock
Vietcombank, established in 1963, is a leading bank with a market capitalization of over 400,000 billion VND (as of October 2024). Vietcombank stock with the ticker VCB has been listed on the HOSE since 2009 and is considered a blue-chip stock with high liquidity, attracting both domestic and international investors.
| Information | Details |
|---|---|
| Stock code | VCB |
| Listed exchange | HOSE (Ho Chi Minh City Stock Exchange) |
| Business sector | Commercial banking |
| Market capitalization | Over 400,000 billion VND (10/2024) |
| Dividend in 2023 | 8.5% (in cash) |
| EPS (2023) | 6,250 VND |
In 2023, Vietcombank achieved a pre-tax profit of 41,300 billion VND, up 10.2% compared to 2022, affirming its leading position in business efficiency within the Vietnamese banking system. Investing in Vietcombank stock is typically considered a safe strategy with lower volatility compared to other banking stocks.
Detailed Steps to Buy VCB Stock
To buy Vietcombank bank stock, you need to follow the process below. This process takes about 1-3 business days to complete from the time you start opening an account until you make your first transaction.
Step 1: Open a Securities Account (1-2 days)
Opening a securities account is the first and most important step. Currently, most securities companies support online account opening, helping to save time and effort.
| Securities Company | Advantages | Transaction Fee | Account Opening Method |
|---|---|---|---|
| SSI | Stable platform, in-depth analytical research | 0.15% - 0.25% | Online, in-person |
| VPS | Low fees, beginner-friendly application | 0.10% - 0.20% | Online, in-person |
| VCSC | Personalized consulting, quality reports | 0.15% - 0.25% | Online, in-person |
| Mirae Asset | Good margin support (margin lending up to 1:1.5) | 0.15% - 0.22% | Online, in-person |
According to 2023 statistics, securities companies with the largest trading market share are SSI (10.12%), HSC (9.53%), and VPS (8.77%). Pocket Option recommends that you carefully compare transaction fees, platform quality, and support services of at least 3 companies before making a decision.
Documents needed to open an account:
- Valid ID card/Citizen card/Passport (valid for at least 6 months)
- Registered personal phone number (activated for at least 3 months)
- Personal email (to receive transaction notifications)
- Bank account information (recommended to use Vietcombank, BIDV, Techcombank for faster transactions)
Step 2: Deposit Money into Securities Account (15-30 minutes)
After your account is approved, you need to deposit money to start trading. Currently, most securities companies have integrated online payment gateways, making the deposit process take place quickly in just a few minutes.
Important notes: When transferring money, ensure:
- The sender's name must match the securities account holder's name
- Enter the correct transfer content as instructed (usually the securities account number)
- Recommended to deposit from 10 million VND or more to buy at least 1 lot of VCB stock (about 8-9 million VND/lot of 100 shares)
How to Buy Vietcombank Stock on Trading Platforms
After completing the account opening and money deposit, you can start buying VCB stock through the trading platform. The order placement process usually takes only 1-2 minutes to complete.
| Step | Detailed Description | Notes |
|---|---|---|
| 1 | Log in to the trading app/website | Use two-factor authentication for security |
| 2 | Search for "VCB" in the search box | Check basic information: price, volume, price range |
| 3 | Select "Buy" order | Trading time: 9:00-14:45 on business days |
| 4 | Enter quantity (multiples of 10 or 100) | Standard lot: 100 shares; odd lot: 10 shares |
| 5 | Enter purchase price (units: 100đ, 500đ, 1000đ) | Allowed price range: ±7% from reference price |
| 6 | Confirm order (check information carefully) | Enter OTP code or biometric confirmation |
| 7 | Monitor order status | Order may be partially or fully matched depending on market conditions |
When buying Vietcombank stock, you can use the following order types:
- Limit Order: You set a specific purchase price, for example 85,000đ/share. The order is only matched when someone sells at that price or lower.
- Market Order: The order is executed immediately at the market price. The advantage is guaranteed matching, but the disadvantage is not controlling the purchase price.
- Stop Order: Only triggered when the market price reaches your set stop price, then becomes a market order.
According to a Pocket Option survey of 500 new investors, 78% of new investors typically use limit orders because they are easier to control and safer. This is especially important with VCB - a stock with high liquidity but sometimes experiencing strong fluctuations during sessions.
Fundamental Analysis Before Investing in VCB Stock
Investing in Vietcombank stock should be based on thorough fundamental analysis. Below are important financial indicators of VCB as of Q2/2024:
| Indicator | Current VCB Value | Compared to Industry Average | Assessment |
|---|---|---|---|
| P/E (TTM) | 17.2 | Higher than industry average (15.8) | High but reasonable given leadership position |
| P/B | 3.7 | Higher than industry average (2.1) | Reflects good asset quality |
| ROE | 23.5% | Higher than industry average (18.7%) | Excellent capital utilization efficiency |
| NIM | 3.2% | Lower than TCB (3.8%) but higher than BID (2.9%) | Stable and sustainable |
| NPL ratio | 1.1% | Lower than industry average (1.5%) | Good risk management |
| CIR (Cost-to-Income) | 28.3% | Lower than industry average (35%) | High operational efficiency |
In addition to financial indicators, it's necessary to monitor macroeconomic factors directly affecting VCB:
- Interest rates: In 2024, the State Bank has reduced policy rates 3 times (total 0.75%), creating favorable conditions for credit growth
- Credit growth: First 6 months of 2024 reached 5.8%, VCB was granted a credit room of 15% for the entire year
- NPL ratio: The entire sector maintains below 2%, VCB has the lowest NPL in the system (1.1%)
- Basel III: VCB is the first bank to apply Basel III standards in Vietnam from Q1/2024
- GDP growth: Forecast to reach 6.5-7% in 2024, positively supporting the banking sector
Advantages and Disadvantages of Investing in VCB Stock
| Advantages | Disadvantages |
|---|---|
| Top 1 market share in capital mobilization (over 10%) | Highest P/E and P/B in the industry, valuation consideration needed |
| Superior asset quality, low NPL (1.1%) | Expected profit growth of only 8-10% in 2024-2025 |
| Regular cash dividends (8-10% annually) | Competitive pressure from fintech and digital banks |
| Information transparency, Basel III compliance | Foreign room is full (30%), difficult to attract more foreign capital |
| Potential price increase when market is upgraded | Highly dependent on State Bank's macroeconomic policies |
Pocket Option analysis shows VCB is currently valued at a high but reasonable level, with a forward P/E for 2024 of about 16.5 times, reflecting its leading position and superior asset quality compared to other banks.
Effective Investment Strategies for VCB Stock
Buying Vietcombank bank stock needs to be placed within an overall investment strategy. Below are specific strategies based on investment objectives:
Long-term Investment Strategy (3-5 years or more)
For long-term investors, VCB is an ideal stock for "buy and hold" with these benefits:
- Stable cash dividends: 8-10% each year
- Sustainable market cap growth: Average 12-15%/year (2018-2023 period)
- Irreplaceable position in Vietnam's economy
| Holding Period | Expected Return (including dividends) | Implementation Strategy |
|---|---|---|
| 1-3 years | 25-35% | Buy at technical support zones (P/E < 16) |
| 3-5 years | 50-70% | Periodic capital allocation (DCA), dividend reinvestment |
| Over 5 years | 100-120%+ | Buy and hold, increase position when market corrects significantly (>15%) |
Real example: An investor who bought VCB in March 2020 (during Covid-19) at 60,000đ/share would have a profit of over 45% after 3 years (as of March 2023), not including dividends of about 24% (8%/year).
Short and Medium-term Investment Strategies (3-12 months)
For short and medium-term investors, buying VCB stock needs to be based on technical factors and important timing:
- Technical analysis: Using MA20, MA50, MA100 lines and support/resistance zones
- Important timing: Before quarterly earnings announcement days (usually 20 days after quarter end)
- Special events: Before dividend distribution (T-10 days), before VCB is added to ETF indices
- Market cycles: Buy when VN-Index corrects strongly but VCB decreases less than the market
The strategy of "buy the bad news, sell the good news" is very effective with VCB, as the market often overreacts to short-term information. Pocket Option provides technical analysis tools that help determine entry/exit points with accuracy higher than 70%.
Risk Management When Investing in Vietcombank Stock
Although VCB is a blue-chip stock with high safety, risk management is still very important when investing in Vietcombank stock. Apply the following principles to protect your investment capital:
| Principle | Specific Application with VCB | Recommended Level |
|---|---|---|
| Portfolio diversification | VCB should be a core stock but not too dominant | Maximum 10-15% of total portfolio value |
| Set stop loss | Determine stop loss threshold based on technical analysis | 7-10% below purchase price |
| Capital allocation over time | Divide purchase orders into multiple batches (3-5 batches) | 20-30% capital per purchase |
| Set profit targets | Sell part when reaching target, keep the rest | Sell 30-50% when profit is 15-20% |
| Maintain reserve capital | Ready to take advantage of opportunities when VCB corrects strongly | 20-30% of planned investment capital |
Typical case: During the Q1/2022 correction, VCB decreased from 90,000đ to 65,000đ (down 28%). Investors applying capital allocation strategy (30% capital at 85,000đ, 30% at 75,000đ, 40% at 65,000đ) had an average cost of 73,000đ, 19% lower than the peak, helping portfolio recover faster when the market rebounded in Q4/2022.
A common mistake is investing too much in VCB just because it's a safe stock. Pocket Option recommends adhering to asset allocation principles, with a maximum of 15% of portfolio in one stock, even for blue-chips like VCB.
Trends and Prospects of VCB Stock Until 2025
Many important factors will impact the prospects of buying VCB stock in the next 12-24 months:
- Digital transformation: VCB is investing 15,000 billion VND for digitalization strategy during 2021-2025
- International expansion: Establishment of representative offices in the US, Australia expected in 2024-2025
- Basel III implementation: Helps improve risk management capacity and international competitiveness
- Increase foreign room: Possibility of increasing to 35-40% when Vietnam gets market upgrade
- VCB Digibank digital bank deployment: Target of 20 million users by 2025
| Positive Factors | Challenging Factors | Expected Impact |
|---|---|---|
| VCB Digibank platform reached 15 million users in 2023 | Intense competition from MBBank, Techcombank in digital sector | +5-8% profit from service fees |
| Highest CASA ratio in the industry (34.5%) | Rising interest rate trend from 2025 may affect NIM | Maintain NIM at 3.2-3.5% |
| Roadmap for market upgrade from frontier to emerging | Upgrade process may be slower than expected | Price increase potential of 15-20% when upgraded |
| International network expansion (currently in 6 countries) | High initial investment costs, long payback period | Contributing 3-5% to total income from 2026 |
A noteworthy perspective: Although VCB is often rated highly for stability, maintaining double-digit growth rates will become increasingly difficult due to its already large size (market cap >400,000 billion VND). Long-term investors should adjust profit expectations down to 10-12%/year instead of 15-20% as in the 2016-2020 period.
Expert Advice for Beginners
If you're a beginner and exploring how to buy Vietcombank stock, here is practical advice from financial experts with 15+ years of experience:
- The 5-10-20 rule: Start with 5% of assets, maximum 10% of portfolio, not exceeding 20% of savings
- Learn first, invest later: Spend 1-2 months researching financial reports, monitoring VCB price movements
- Follow in-depth newsletters: Subscribe to analysis newsletters from SSI, HSC, VCSC about the banking sector
- Use simulation tools: Practice virtual orders before investing real money
- Avoid "buying the peak": Don't buy when VCB increases continuously for 3-5 sessions and far exceeds the MA50 line
Nguyen Minh, an analyst with 15 years of experience in Vietnam's stock market shares: "VCB is a suitable stock for beginners thanks to its stability and transparency. However, the best strategy is 'dollar-cost averaging' - buying gradually over time instead of putting all capital in at one time. This helps minimize the risk of timing the market and creates disciplined investment habits."
Pocket Option provides free online courses helping new investors understand how to analyze banking stocks, especially VCB with specific indicators of the financial industry such as NIM, CIR, and CAR.
Conclusion
Buying Vietcombank bank stock is a popular choice for many investors due to its stability and long-term growth potential. With its leading position in Vietnam's banking industry, VCB is considered a "defensive" stock but still has the ability to deliver attractive returns in the long term.
To successfully invest in VCB, you need to:
- Complete the process of opening an account and depositing money at a reputable securities company
- Master order placement techniques and types of trading orders
- Thoroughly analyze financial indicators and macroeconomic factors affecting VCB
- Build and adhere to an investment strategy suitable for your timeframe and financial goals
- Strictly apply risk management principles and asset allocation
Investors should remember that all investments carry risks, even with high-quality stocks like VCB. Pocket Option recommends only investing with money that you can afford to lose in the worst scenario, and always having a clear exit strategy.
With the right strategy, comprehensive knowledge, and discipline in execution, investing in VCB stock can be an important part of your asset-building journey. Start with small steps, learn continuously, and adjust your investment strategy to suit market conditions.