The "fierce" race for market share among securities companies

DNHN - The Ho Chi Minh City Stock Exchange (HoSE) has just announced the third quarter trading market share, revealing the fierce competition in the securities industry.

However, this change is not the only noteworthy point. VNDirect, one of the big names in the industry, has witnessed a significant decline in market share, dropping to 6th place with 5.7%. This situation reflects a multifaceted picture of the shifting Vietnamese stock market amidst numerous challenges and opportunities.

Vietcap Securities Joint Stock Company experienced a difficult period from 2021 to 2023 as their market share gradually fell towards the bottom of the rankings. This period saw fierce competition from other companies, especially as the Covid-19 pandemic caused strong shifts in people's investment behaviors. According to Mr. Tô Hải, General Director of Vietcap, the company failed to recognize the rising trend of individual investors, leading to a market share drop to around 4%.

However, with a clear awareness of past strategic mistakes, Vietcap has adjusted its direction. The company is not only focusing on institutional customer consulting but also seeking to attract individual investors to better meet market demand. Clearer marketing campaigns and customer support systems are being implemented, showing positive improvements in Vietcap’s market share, bringing them back into the top 4.

While Vietcap shows signs of recovery, VNDirect faces difficulties as it drops to 6th place. Their market share is now only 5.7%, much lower than the 7-8% range of the past few years. The main reason for this decline is believed to be the aftermath of a cyberattack in March, which "froze" investor accounts for a long time. This not only impacted VNDirect’s reputation but also led to customer frustration.

Although VNDirect still maintains a large customer base and offers diverse services, this incident has raised concerns about the company's security capabilities and reliability in the eyes of investors. To recover, VNDirect needs stronger strategies to regain customer trust.

In the current competitive landscape, VPS Securities Joint Stock Company continues to hold the leading position with a market share of 17.63%. VPS has proven its stability and adaptability to market fluctuations. Additionally, SSI Securities Joint Stock Company is equally prominent with a market share of 8.84%.

SSI has built a strong brand in the minds of investors thanks to its diverse product offerings and timely market information. This has helped SSI maintain a loyal customer base while also attracting many new investors.

Third place belongs to Techcom Securities Joint Stock Company (TCBS) with a market share of 7.09%. TCBS has made smart moves in developing online service products to meet the increasing demand of investors. Their easy-to-use trading platform and effective advisory services have helped TCBS assert its position in the market share race.

One of the important trends in the securities industry today is the increase in the number of individual investors. The Covid-19 pandemic has driven many people to shift towards stock investment as a way to increase income. This has led to a significant change in investment behaviors, requiring securities companies to quickly adapt to meet the needs of this target group.

Both Vietcap and VNDirect are clearly aware of this trend and are adjusting their strategies. Vietcap has begun implementing marketing campaigns to attract individual investors, while VNDirect needs to restore its reputation to avoid being left behind.

The third quarter market share of securities companies shows a strong transformation amidst fierce competition. Vietcap is striving to recover and return to the top 4, while VNDirect faces numerous challenges to overcome. VPS, SSI, and TCBS are maintaining their solid positions, proving their stability and ability to meet market demands.

These changes not only reflect competition among companies but also demonstrate the development and maturation of Vietnam's securities industry. To survive and grow, securities companies must continuously innovate, improve service quality, and quickly respond to the needs of investors, especially in this challenging period of transformation.

Nhan Ha Phan