HANOI, Sept 15 Vietnam plans to open a
derivatives market in the first quarter of next year in a bid to
draw more investment to its capital markets, with futures
contracts set to launch first, the Hanoi Stock Exchange said on
The market will initially start with two main derivative
products - stock index and government bond futures - and once
fully operational, more instruments will be introduced, the
The launch of the derivatives market is designed to support
the country's stock market by providing more instruments to
hedge risks and attracting more investors.
Le Ha, an analyst at Vietcombank Securities, said making
more products available was a positive step. Gains would be
gradual, but overall it could help Vietnam's efforts to become a
viable emerging market, she said.
"This may also partially help shorten the process of
upgrading Vietnam's stock market," she added.
The plan was approved in 2014 by then Prime Minister Nguyen
Tan Dung and has been welcomed by experts and investors
following feasibility studies. In Southeast Asia, Singapore and
Thailand also have derivatives markets.
Vietnam's stocks are on the radar for frontier market
investors, offering the region's second-cheapest stocks.
The combined market capitalisation of the country's two
stock exchanges in Ho Chi Minh City and Hanoi are
comparatively modest at around a sixth of Thailand's and
a quarter of Singapore's.
(Reporting by My Pham; Editing by Martin Petty and Jacqueline