By
My Ha, Minh Hue
Thu, April 24, 2025 | 10:45 pm GMT+7
Introduction of the KRX System
The Ho Chi Minh Stock Exchange (HoSE) has recently made headlines with its announcement on the official launch of the new stock trading system, KRX, set to go live on May 5, 2025. This move has generated significant interest across the Vietnamese financial landscape, with many market players eager to understand its implications.
Anticipated Impact on the Vietnamese Stock Market
Nguyen Viet Duc, the digital business director at VPBank Securities, has provided insights regarding the expected impact of the KRX system. While he acknowledges that the new platform introduces advanced trading options, he believes the effect will be moderate. According to Duc, macroeconomic elements will continue to be the primary drivers of market behavior, rather than the new technology itself.
Features of the KRX Trading System
The new KRX system is designed with a suite of enhanced features to upgrade the trading and settlement operations within the Vietnamese securities market. Key features include:
- Same-day Trading (T+0): This feature allows investors to buy and sell securities within the same trading day, significantly enhancing liquidity and trading agility.
- Short Selling: With this functionality, investors can sell borrowed stocks, allowing for greater flexibility in trading strategies.
- Reduced Settlement Times: Faster transaction completions are expected, promoting a more efficient market environment.
- Options Contracts: This addition will provide investors with more derivatives trading opportunities, enhancing market dynamics.
- Central Counterparty Clearing (CCP): This feature aims to reduce counterparty risks by managing trade settlements and defaults.
Stakeholder Engagement and Responsibilities
In its announcement, HoSE emphasized the need for comprehensive engagement among various stakeholders, including listed companies, individual investors, and media outlets. The exchange encouraged all participants to contribute to the systematic functioning of the KRX system, promoting not just compliance but also proactive involvement in educating investors about the system’s benefits.
Future Projections and Market Sentiment
There is a palpable sense of hope among investors regarding the launch of the KRX system. Many believe that once the system is operational, it will foster a positive atmosphere for securities firms and enhance overall market health. Nevertheless, Nguyen Viet Duc cautioned that while the introduction of KRX represents a progressive step forward, its true impacts might only become evident over a horizon of one to two years.
He noted that external factors, particularly the trade policies of the U.S. administration, could exert considerable influence on corporate earnings and market liquidity in the immediate future, potentially exacerbating challenges despite the new system’s advancements.
Historical Context and Development Timeline
The KRX system is not simply a short-term endeavor; it has been in development since its approval in 2012. Serving as a collaborative project between the HoSE and the Korea Exchange (KRX), the initiative aims to modernize Vietnam’s trading environment substantially. Alongside the HoSE, the Hanoi Stock Exchange (HNX) and the Vietnam Securities Depository and Clearing Corporation (VSDC) stand to benefit significantly from this technological upgrade.
Recent Market Activity
Ahead of the KRX launch, market activity remained mixed. The VN-Index, a representative gauge of the HoSE, saw a modest rise of 12.35 points, or 1.02%, reaching 1,223.35 on April 24, 2025—marking its highest level since mid-April. However, trading volume witnessed a decline, dropping 7% to VND17.66 trillion (approximately $679 million) on that day, indicating a cautious market sentiment as participants await the new system’s introduction.
The introduction of the KRX system is more than just a technological change; it’s a pivotal moment for Vietnam’s financial landscape that aims not only to modernize trading but also to enhance confidence among investors in a rapidly evolving market.