From 2016 to 2018, Mirae Asset Securities’s chartered capital increased significantly from VND300 billion to VND4,300 billion . The increase took place after the company became a 100 per cent foreign-invested enterprise. Mirae Asset Securities Vietnam is under Hong Kong-based Mirae Asset Securities Company, a member of South Korea's Mirae Asset Financial Group.
The company is rising to become one of the biggest margin lenders in the securities industry and ranked top 5 largest securities companies in Vietnam, contributing 5.27 per cent of market share according to newest report of Ho Chi Minh City Stock Exchange (HOSE) in just about three years since its increase in charter capital.
In the first nine months of this year, it achieved a new record regarding the operating revenue at VND650 billion and profit-after-tax at VND285 billion , nearly doubled over the same period of last year.
Its presence in Vietnam has been expanding through broadening broker teams and opening more branches. In late June, Mirae Asset Securities Vietnam opened a new branch in Gelex Tower Office Building in Hanoi, the second branch in Hanoi and the seventh in the country.
Mirae Asset Financial Group has a great financial potential when managing up to $384 billion globally as of June2019 hold by Mirae Asset Global Investments ($137 billion), Mirae Asset Daewoo ($207 billion) and Mirae Asset Life Insurance ($35 billion).
The group established the first Korean securities company in Vietnam in 2007 and since then, has increased investment many times. The total investment in Vietnam market just accounts for less than one per cent of total assets managed by Mirae Asset Financial Group so this number is expected to grow strongly in the future.
In the next few years, it will not be surprising that Mirae Asset Securities Vietnam continues to increase its lending scale and then, outrun its competitors who facing some limitations in the country.
The scale of margin lending in Vietnam stock market is currently about $2.5 billion which is not a large number and most domestic securities companies still have to use bank loans to provide investors. However, this capital is limited by the regulations on the ratio of securities investment lending of banking industry.
“The margin lending market is the starting point of Mirae Asset Securities Vietnam's ambition to become one of the leading securities companies in Vietnam”, said general director Kang Moon Kyung.
After achieving success in the securities brokerage service, it has recently expanded activities in personal investment and investment banking. Recently, it has been joining in supporting potential businesses in raising bond.
The strong flow of South Korean investment into Vietnam in recent years has led to the emergence of many financial groups, which makes Mirae Asset Securities Vietnam have to face fiercer competition.
Mirae Asset Securities Vietnam has also to compete with domestic securities companies which have maintained a firm and stable position for many years.
Mr. Kang Moon Kyung believed that Mirae Asset Securities Vietnam’s advantages come from more than ten-year experience in Vietnam market, so the company understands market’s opportunities well.
In order to control risks, Mirae Asset Securities Vietnam has three core principles.
The first and foremost principle is, it aiming to lend margin to listed companies which have good assets, great profitability, strong balance sheets and potential business prospects, which will strengthen its margin loan portfolio in both short and long-term.
The second vital principal is it closely following the Vietnam SSC’s regulations in operating and managing risks.
The third is it following Mirae Asset head-quarter process in reviewing margin lending stock every month to keep up with market condition.
The company also has many teams which operate separately in order to maintain objectiveness in its decision to provide margin for stocks, giving the company sense of balance as well as sound risk management when it works with clients who are requesting significant amount of margin loan.