Securities Companies Touting Clients

Saigon Securities Incorporation (SSI) was the first to require clients to have at least VND100 million (US$6,250) to open accounts with the company. Other securities firms like Vietcombank Securities (VCBS) and ACB Securities (ACBS) also temporarily froze new account applications. However, these actions were only seen in the prime time for the stock market, in late 2006 when securities could not handle all requests and began selecting investors. Nowadays, things have changed and securities are trying to please customers and launch promotion programmes to attract customers.

 

“On the occasion of opening a new office, Asia-Pacific Securities Joint Stock Company (APEC) will apply a promotion programme under which the first 1,000 clients to open accounts at APEC will be exempt from transaction fees in the first month, discounted 50 per cent of transaction fees in the second month and 30 per cent in the third month.” This is the content in an open letter APEC sent its customers. However, the deep corrections of the stock market discouraged people from opening accounts. After one month, account activations remained very thin.

 

APEC is one of dozens securities companies doing their best to lure clients. To expand the market and affirm the trademark while there are too many service providers, securities firms, especially newcomers, offer service fee cuts. Instead of applying 0.5 per cent fee over the total trading value, as widely applied previously by old firms, newcomers like Cho Lon, Royal, Tan Viet and Gia Anh are offering only 0.2 per cent. Viet Tin Securities Even donates VND5 million for its new clients. This amount of bonus will be discounted after each transaction of customers. The fee is 0.35 per cent over the total trading value. This activity has been imaginable only four months ago.

 

Especially, when banks limit lending for securities investment and the market is experiencing the downtrend, investors think it is not good to invest. Thus, several securities companies with strong financial companies quickly carry out repo of shares for its clients to seek higher profit margins. SSI is now collecting repo fees of 1.26 per cent. Under the law, the money of traders has to be placed at banks; Dai Viet Securities quickly join hands with Military Bank (MB) to serve its investors. MB transaction counters are now present at two trading floors of Dai Viet Securities to facilitate the payment of clients. Rong Viet Securities attracted investors by its “Travelling with investor month” campaign, under which the company organises presentation, training and market evaluation for investors without any fees.

 

To affirm the position by technological capacity, VNDirect allows its clients to carry out online transaction by VTOS cards and to check account information by cell phones. This is an advantage in the continuous order-matching mechanism, because the customers can find out the result and order status immediately. Tan Viet Securities invested nearly US$1 million to build online transaction set which brings transparency to both investors and the company.

 

Previously, it was hard to find a good and convenient securities trading floor, but it is a very simple activity now. Securities companies lean on parent banks to expand their networks. ACBS has opened many transaction branches in Ho Chi Minh City apart from its head floor in District 3. These branches are attached to ACB bank transaction offices. ACBS has also expanded its network to Can Tho and Dong Nai, and is preparing to open another one in Nha Trang City, Khanh Hoa province. It has also upgraded the branch in Haiphong City. The strategy of ACBS is to open in all big cities like Haiphong, Can Tho and Danang.

 

Other securities companies also revealed plans to expand their networks. The opening of order-receiving agents is the first option of securities companies to expand their networks because they don’t need a licence. APEC is preparing to open such agents in Da Lat and Dak Lak in August. It is also seeking to open new agents in Ho Chi Minh City, Dong Nai and Binh Duong provinces. Many partners have visited APEC to negotiate to become order-receiving agents. The cooperation promises a brighter future for investors, securities companies and enterprises.