Testing the "sandbox" model to diversify the Vietnamese stock market

DNHN - The "sandbox" model to test new securities products will help select a number of securities companies and intermediary financial institutions with sufficient potential to pilot some structured products for the market.

At the seminar "Vietnam Stock Market: New Momentum - New Opportunities", Ms. Nguyen Thi Thu Hien, General Director of Techcom Securities Joint Stock Company (TCBS), proposed applying the "sandbox" model to test new securities products.

Ms. Hien believes that this model will help select a number of securities companies and intermediary financial institutions with sufficient potential to pilot some structured products for the market.

According to Ms. Hien, investors participating in the "sandbox" model need to be carefully selected, including those who understand the market to be able to make decisions and take responsibility for their decisions. This will create favorable conditions for piloting and deploying new products on the market.

In a meeting with the delegation of the Japan International Cooperation Agency (JICA), which is advising the State Securities Commission on the development of the Vietnamese stock market, Ms. Hien emphasized the necessity of diversifying securities products. JICA also recommended that Vietnam needs to add many new products, products that are popular in the international market but still unavailable in Vietnam. Ms. Hien believes that only by applying the "sandbox" model can the Vietnamese market catch up with other markets in the region.

“Recently, we worked with the delegation of the Japan International Cooperation Agency (JICA), which is advising the State Securities Commission on the development of the Vietnamese stock market. JICA also advises that the Vietnamese market needs more new products, many of which the world has but Vietnam still lacks. We proposed piloting by creating a "sandbox" model. Only that way can our market catch up with other markets in the region," Ms. Hien emphasized.

Ms. Hien stated that in the future, the Vietnamese stock market will not only be limited to stocks, bonds, and fund certificates but will also have many other investment products. This is especially important as the proportion of investors allocating to financial assets is increasing. She also emphasized that technology trends will play an important role in attracting investors, especially those who want to save time.

Ms. Hien also shared about TCBS's journey in the stock market. More than 10 years ago, when TCBS joined the market, there were up to 70 securities companies operating, making competition difficult. Therefore, TCBS chose to enter the wealth management market, focusing on the bond and fund certificate market. Recently, TCBS has returned to strongly developing the stock market after accumulating enough capital.

TCBS has developed sustainably thanks to technology, through building non-brokerage platforms that use technology to deliver information to investors as quickly as possible. This helps investors read all analyses, place orders quickly, and seize market opportunities. Investors can also monitor their entire portfolio and available opportunities.

Ms. Hien added that in the first half of 2024, 56% of new investors opening accounts at TCBS were under 30 years old. Ms. Hien commented that Gen Z investors are enthusiastic, act quickly, take responsibility for their trading decisions, and are willing to try new technology. Therefore, the market needs to provide them with many new products and technologies to attract more young investors to join.

An Thao