While investing in Vietnam stock can be challenging for some foreigners, the opportunities for reward still exist. As is true with most Asian markets, the Vietnam stock market is posed to increase in both terms of opportunities, as new companies come onto their market, and in terms of access. With some older, more traditional markets showing sluggish growth, as well as uncertain levels of turmoil, many investors are looking for new markets, and the Vietnam market may be a good option for those investors.
As is true with any type of investment, it is important that those considering the Vietnam stock market to first understand the market. While much has changed in the country over the last few decades, it is still a Communist entity. The Ho Chi Minh City Stock Exchange is the nation’s primary Vietnam exchange, and it must be used by those foreigners who wish to invest in Vietnam. Another important fact about this market is that foreign investors are limited in the amount of Vietnam stock that they can own.
One of the best options for those looking into the Vietnam stock market is to find and work with a legitimate Vietnam broker. Keep in mind that only a few US based brokers have access to the Vietnam stock market, so finding a reliable and knowledgeable broker can be tricky. Still, it is often the best way to gain access to this new market. It is important to always check the fees and charges that a broker will charge for these transactions as some brokers will charge much more than others.
Another option is to work with a Vietnam broker who is physically based in the country. While this may be the easiest way to secure a brokerage firm to handle your Vietnam stock transactions, it can be risky in that many of these firms are not as protected (in terms of capitalization) as US based firms. Also, Vietnam stock market investors may find that they have far less protection of their assets should the firm go out of business or there be some type of political or civil unrest which could affect the Vietnam stock.
Before an investor is allowed to buy Vietnam stock directly from the Ho Chi Minh City Stock Exchange they must first file a registration form, along with an applicant information sheet as well as be subject to a background check for criminal activity. Both the Vietnamese embassy and the investor’s home nation must have these documents notarized before investors can buy into the Vietnam stock market.