What do investors need to understand about the opening hours of the Vietnamese stock exchange in 2022

In the journey of stock investing, understanding the trading hours is not a minor detail but a key factor determining the success or failure of each transaction. Worldwide, from NYSE and NASDAQ in the US to JPX in Japan, LSE in the UK, or SSE in China, each exchange has its own operating schedule. In Vietnam, the three main stock exchanges—HOSE, HNX, and Upcom—are no exception. If you place an order outside the designated hours, your order will be suspended and only processed when the market opens again, which could cause you to miss profit opportunities or suffer losses due to price fluctuations.

Vietnam Stock Market: From Beginnings to Today

With over 20 years of development, the Vietnamese stock market has undergone remarkable transformations. Starting with just 2 initial stocks, (REE and SAM), today there are up to 1,600 listed companies with a total market capitalization of 4 quadrillion VND (approximately 171 billion USD). Additionally, the derivatives market, although only three years old, has seen trading volume increase 3.3 times per year, demonstrating the sustainable growth of Vietnam’s financial system.

Stock Market Opening Hours and Specific Trading Schedule

General Rules for All Three Exchanges

HOSE, HNX, and Upcom operate from Monday to Friday each week. Saturday, Sunday, and public holidays are completely non-trading days. On average, the Vietnamese stock market has about 250 trading days per year.

Details of HOSE Trading Hours

This is the largest exchange with two trading sessions per day:

Morning Session: From 9:00 to 11:30 (GMT+7)

• 9:00-9:15: Opening periodic matching (using ATO, LO orders)
• 9:15-11:30: Continuous matching (for LO, MP, MOK, MAK, MTL orders)

Lunch Break: 11:30 to 13:00

Afternoon Session: From 13:00 to 15:00 (GMT+7)

• 13:00-14:30: Continuous matching (for LO, MP, MOK, MAK, MTL orders)
• 14:30-14:45: Closing periodic matching (applying ATC, LO orders)
• 14:45-15:00: Negotiated matching

For bonds, trading hours are 9:00-11:30 in the morning and 13:00-15:00 in the afternoon.

Special Features of HNX

HNX has a trading rhythm similar to HOSE but differs in some aspects:

• No opening periodic matching session (no ATO)
• Adds after-hours trading from 14:45-15:00 with PLO orders (Placement Order)

Upcom Exchange - Different Trading Criteria

Upcom operates more independently, not using any periodic matching sessions (no ATO or ATC). All trading times from 9:00-11:30 and 13:00-15:00 are continuous matching with LO, MP, MOK, MAK, MTL orders.

Derivatives Market - Different Trading Hours

Currently, Vietnam offers two main derivative products: the VN30 index and 5-year Government Bond Futures. Notably, the derivatives trading hours start 15 minutes earlier than the stock market:

• Session I: 8:45-11:30
• Break: 11:30-13:00
• Session II: 13:00-14:45

Settlement Time: A Critical Factor for Cash Flow

Beyond trading hours, settlement time also plays a crucial role in capital management. When trading on HOSE, HNX, or Upcom, settlement times are based on three milestones:

• T+0: On the same trading day if the transaction is successful
• T+1: One business day after the transaction
• T+2: Two business days after the transaction (excluding Saturdays, Sundays, and holidays)

Bonds settle T+1, while stocks, closed-end fund certificates, and ETFs settle T+2.

Practical Notes for Vietnamese Investors

Although the three exchanges have slight differences in opening times, these differences are only 15-30 minutes. More importantly, each trading window applies different types of orders with varying priority levels.

If you are a retail investor unfamiliar with complex order types, prioritize using LO (Limit Order). This order type can be used throughout the trading session and helps you actively control your buying and selling prices.

Finally, carefully plan your settlement timing to avoid cash flow bottlenecks, especially when trading near weekends or before holidays when the number of working days may be reduced.