The Ho Chi Minh Stock Exchange (HOSE)’s total revenue in 2022 reached over 2.5 trillion VND, down 23% compared to 2021, the country’s major bourse has announced.

HOSE’s revenue comes from three main activities, including securities trading activities, service provision activities and financial activities.

According to the exchange, the reason for the sharp decrease in revenue in the past year was mainly due to the drop in revenue from securities trading activities which reached only 2.3 trillion VND, down nearly 22% compared to the previous year. Meanwhile, service provision activities recorded an increase of over 10.9% compared to 2021, while revenue from financial activities did not fluctuate much.

HOSE’s total expenses in 2022 reached more than 562 billion VND, down 20% compared to 2021; in which, the cost of market monitoring still made up the largest proportion in the cost structure of HOSE, accounting for 66.05%, equivalent to 371.44 billion VND.

This cost of market monitoring was reduced by 25% compared to the previous year. The cost of tools and equipment, and depreciation of fixed assets accounted for 10.2% of the total cost, equivalent to 57.54 billion VND. The cost of salaries and other payables for employees was 87.27 billion VND, accounting for 15.5% and the remaining costs made up 8.18% of the cost structure of HOSE in 2022.

In 2022, the bourse achieved a pre-tax profit of 1.95 trillion VND, down 23% compared to a record profit of 2.5 trillion VND in 2021.

HOSE paid nearly 1.93 trillion VND to the State budget in 2022, down about 17.14% compared to 2021.

According to the exchange, 2022 was a year with many fluctuations and difficulties for the Vietnamese stock market. The instability of the world economy, the geopolitical conflict between Russia and Ukraine, the pressure to adjust interest rates to control inflation by the US Federal Reserve (Fed) and central banks around the world, cases of violations by some individuals and organisations on the domestic stock market, all negatively affected investor sentiment.

The VN-Index as of December 30, 2022 reached 1,007.09 points, down 32.78% compared to the end of 2021. The average transaction value reached nearly 17.19 trillion VND, down 21.88% compared to the previous year. Market capitalisation as of December 30, 2022, attained about 4.02 quadrillion VND, down 31.19% compared to the end of 2021.

According to Nguyen Thi Viet Ha, acting chairwoman of HOSE, although experiencing many sharp declines, in general, Vietnam’s stock market still maintains stable and safe operation. Most of the companies listed on HOSE recovered and made profits this year.

Foreign investors returned to net buy more than 26 trillion VND compared to 58 trillion VND in 2021. Strong GDP growth, inflation under control, proper monetary and fiscal policies, improved business and investment environment were the basic factors that create the foundation for long-term growth of Vietnam’s stock market, Ha said.

In 2022, in the context of many difficulties and challenges, HOSE has achieved some results in market organisation and internal governance.

The supervision of information disclosure of listed companies and supervision of unusual transactions have been strengthened by HOSE in order to tighten market discipline. The market has been organised and operated safely and stably, odd-lot securities trading has been successfully implemented, providing additional trading facilities to meet the needs of investors, Ha said.

VNA