Applications to set up securities brokerages continue to pour in, with even state firms in unrelated businesses joining the scramble, all attracted by the profitability of the business.
The State Securities Commission (SSC) said in the first half of this year some 15 new firms were licensed, taking the total number to 65 from 14 last year.
Over 80 more applications were awaiting approval.
Last year mostly banks, financial institutions, and insurance companies set up securities companies.
But recently several state-owned firms operating in unrelated sectors have filed applications with an eye on the profits brokerages make in Vietnam’s underserved stock market.
Most brokers reported a sharp rise in first quarter net profit.
Saigon Securities Inc., one of the biggest, said its profit rose fourfold year-on-year to VND465 billion (US$29 million) on revenues of VND573 billion.
Bao Viet Securities Company, an arm of Bao Viet Insurance Corp., and brokerages run by commercial banks Asia Commercial Joint Stock Bank (ACB), Bank for Foreign Trade of Vietnam (Vietcombank), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), and Eastern Asia Bank (EAB) all reported quarterly profits of over VND100 billion.
They all charge commissions of 0.2 to 0.5 percent on transactions.
The Ho Chi Minh and Hanoi bourses together report trades of around VND1 trillion a day, meaning commissions of VND2 – VND5 billion for the brokerages.
With the explosion in the stock market and securities business, insiders are concerned about the shortage of experienced brokerage staff and the fierce competition for personnel.
A firm needs at least 60 brokers to handle just the securities business.
Nguyen Ngoc Tuoi, general director of Danang Securities Company, said there was huge demand for experienced staff which was running well ahead of supply.
The SSC recently approved the setting up of five more centers to provide securities training. But their trainees will only join the job market next year.
Source: Thanh Nien
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment