Việt Nam's stock market boom demands robust technology infrastructure

Việt Nam's stock market boom demands robust technology infrastructure

As trading volumes continue to surge, experts stress the urgent need for reliable systems to support seamless transactions and maintain a stable, sustainable market environment.

An investor observes the market's movement on her computer. — VNA/VNS Photo

Việt Nam’s stock market is on a remarkable upswing, with soaring trading volumes prompting urgent calls for enhanced technological infrastructure to keep pace.

As activity heats up, experts stress the importance of robust systems to support seamless transactions and ensure a healthy, sustainable market.

Liquidity on the domestic stock market has surged dramatically: trading sessions now routinely exceed VNĐ70 trillion (US$2.7 billion), a sharp rise from previous benchmarks when VNĐ40 trillion was considered a standout day.

Crucially, the recent growth has seen a reduction in order congestion—an issue that previously hampered the market amid the influx of new investors in 2021.

Industry leaders underscored the vital role of technology during a recent seminar titled "Ensuring Technology Infrastructure During a Stock Market Boom", highlighting that such resilience is essential to sustain this historic momentum.

Head of Securities Operation at VPS Securities Vũ Yến Dung highlighted the company's commitment to expanding its technology infrastructure to enhance investor experience and service diversity.

With a customer base that has grown to between 500,000 and 700,000, VPS reported handling up to 800,000 orders per session—an unprecedented volume in recent years.

"Our proactive platform development ensures that we can scale to meet future demands, especially as Việt Nam's stock market continues to grow and evolve," Dung said.

The recent implementation of the KRX system, an advanced trading management and operations platform, has been pivotal in facilitating current high liquidity levels.

Deputy General Director of Financial Software Solutions (FSS) Ngô Quang Huy said that the KRX system represents a historic milestone for Việt Nam’s stock market.

It not only enhances processing capacity but also addresses previous congestion issues, thereby enabling smoother trading experiences.

The new technology infrastructure is akin to a wide highway, allowing increased traffic flow and reducing bottlenecks.

"This system will also enable us to introduce more complex financial products, such as day trading and options," Huy said.

The market is projected to evolve into a smart trading environment over the next five to ten years, driven by artificial intelligence and big data analytics, Huy added.

Retail investors currently dominate trading, accounting for 90 per cent of transactions, primarily conducted via online platforms. Therefore, technology providers must ensure their systems are equipped to meet the evolving needs of these investors, the FSS expert said.

FSS is currently providing core solutions to over 35 securities firms and ten asset management companies, reinforcing the notion that recent trading surges were anticipated.

The firm has made strategic investments in long-term technology infrastructure—including both software and hardware solutions—to accommodate significant transaction volumes.

Despite these advancements, the industry faces two major challenges: managing increased transaction volumes and maintaining high service quality.

Huy emphasised that user experience must remain a priority, ensuring quick and smooth processing from order placement to risk management.

As Việt Nam’s stock market continues its unprecedented growth, the collaborative efforts of technology providers and securities firms will be crucial in navigating the future landscape. The industry must prioritise cybersecurity, embrace open-architecture systems, and invest in data analytics to elevate investor experiences and safeguard market integrity. 

Bizhub