Korean securities firms and asset managers operating in Vietnam are accelerating efforts to strengthen wealth management (WM) and investment product capabilities, moving beyond business structures centered on brokerage and margin lending. The strategy aims to capture long-term investment demand as Vietnam's capital market, which has grown around retail investors, becomes increasingly likely to evolve into an institution-driven market following its upgrade to emerging market status by FTSE Russell.
According to the financial investment industry on the 9th, brokerage and margin loans remain the core revenue sources of Vietnam's securities industry. With a low share of institutional investors and trading volume driven mainly by individuals, credit extension using firms' own capital has served as a stable source of income. However, industry watchers expect the market's center of gravity to shift from a trading-centered structure toward funds, ETFs, bonds and WM as the market matures.
Mirae Asset Securities (006800.KS) is among the most active in responding to this shift. Mirae Asset Securities' Vietnam unit is expanding beyond simple order execution to investment information, market analysis and portfolio advisory functions, led by its proprietary mobile trading system 'M-Stocks' and AI investment assistant 'MASA AI.' The plan is to build a long-term wealth management framework combining digital platforms with expert advisory services.
"As the market matures and the share of long-term investors grows, service competitiveness in managing client assets over the long term will become more important than simply offering a convenient trading platform," said Nguyen Hoang Yen, head of Mirae Asset Securities' Vietnam unit. "Our goal is to expand beyond providing investment information to long-term portfolio management and advisory functions."
Shinhan Securities is also speeding up efforts to expand its product ecosystem beyond brokerage-centered operations. The Vietnam unit's retail revenue grew from 680 million won in 2020 to 24.73 billion won last year, while total operating revenue rose from 5.68 billion won to 35.4 billion won over the same period. The firm is pushing to build a 'total solution' offering covered warrants (CW), bonds, funds and IPO subscriptions on a single platform, and has secured licenses related to government bonds and CWs.
The product market is indeed growing rapidly. Average daily trading value in Vietnam's CW market expanded from approximately 7.2 billion dong in 2019 to approximately 97.4 billion dong this year, while total issuances in the market increased from 61 to 445 over the same period. This signals growing demand to utilize a variety of investment products beyond simple stock trading.
Asset managers are also preparing for the market shift. Korea Investment Management is focusing on the growth potential of Vietnam's fund and ETF market, which is still in its early stages. The local fund market is approximately 5 trillion won in size and has grown at an average annual rate of 40% over the past 10 years, while the total market including foreign investor funds is estimated at approximately 20 trillion to 25 trillion won. The ETF market, with only about 15 products and approximately 1.5 trillion won in assets, is seen as having significant room for growth.
"Korea has more than 4,500 public funds and over 1,000 ETFs, so we can sufficiently localize products to meet local demand in Vietnam," said Hyun Dong-sik, head of Korea Investment Management's Vietnam unit. "Given that Vietnam is a market with strong investment demand for gold, there is significant room to gradually introduce products proven in Korea, including physical gold ETFs and IPO funds."
