Conquering the Vietnamese Stock Market: A Comprehensive Guide to Trading Hours

Why Are Stock Trading Hours Important?

Every trader has experienced trying to place an order but having to wait until the next session for it to be matched. This is no coincidence—it’s because you are trading outside of active trading hours. During stock market closures, numerous events can influence asset prices, from international news to specific company updates. Therefore, understanding stock trading hours is not only basic knowledge but also a key to avoiding unnecessary losses and seizing better investment opportunities.

Vietnam Stock Exchange: From 2 Stocks to Thousands of Tickers

Over 20 years of development, the Vietnamese stock market has grown exponentially. Starting with just 2 stocks, (REE and SAM), now there are over 1,600 listed companies with a total market capitalization of 4 quadrillion VND (approximately 171 billion USD).

The derivatives market, although only 3 years old, has demonstrated strength with trading volume increasing 3.3 times annually. To maximize opportunities in these two segments, the first step is to master the trading hours on each exchange.

Underlying Stock Market Trading Hours: HOSE, HNX, UpCom

All three Vietnamese stock exchanges operate from Monday to Friday, with trading suspended on Saturdays, Sundays, and public holidays. On average, the market trades about 250 days per year.

HOSE: Detailed Trading Hours

HOSE divides trading into several sessions:

• 9:00 AM to 9:15 AM: Opening auction session (ATO), allowing ATO and LO orders
• 9:15 AM to 11:30 AM: Continuous trading with LO, MP, MOK, MAK, MTL orders
• 11:30 AM to 1:00 PM: Lunch break
• 1:00 PM to 2:30 PM: Continued continuous trading
• 2:30 PM to 2:45 PM: Closing auction session (ATC)
• 2:45 PM to 3:00 PM: Negotiated trading

Bond trading occurs from 9:00 AM to 11:30 AM, then pauses from 11:30 AM to 1:00 PM, and resumes from 1:00 PM to 3:00 PM.

HNX: Slight Differences but Important

HNX operates similarly to HOSE but does not have an opening auction session (opening auction). Instead, HNX offers after-hours trading from 2:45 PM to 3:00 PM with PLO orders (Post-List Order). This makes HNX’s trading hours more flexible for investors wanting to trade at the end of the day.

UpCom: The Simplest

UpCom does not have any periodic matching sessions (No ATO, no ATC). It only has:

• 9:00 AM to 11:30 AM: Continuous trading
• 11:30 AM to 1:00 PM: Lunch break
• 1:00 PM to 3:00 PM: Continuous trading

Derivatives Market: Opens 15 Minutes Earlier

Vietnam’s derivatives market currently offers only two main products: VN30 index and 5-year Government Bond Futures. Notably, derivatives trading opens 15 minutes earlier than the underlying stock market:

• 8:45 AM to 11:30 AM: Morning session
• 11:30 AM to 1:00 PM: Lunch break
• 1:00 PM to 2:45 PM: Afternoon session

This advantage allows traders to grasp market conditions earlier.

Settlement Time: An Overlooked Factor

Besides trading hours, settlement time is crucial to avoid cash flow issues. Vietnam uses three settlement milestones:

• T + 0: Same-day settlement (applies in some special cases)
• T + 1: One trading day after settlement (for bonds)
• T + 2: Two trading days after settlement (for stocks, fund certificates, ETFs)

Note: T + 1 and T + 2 do not include holidays, Saturdays, or Sundays. If you trade on Thursday afternoon, funds may arrive the following week, significantly affecting your capital management plans.

Practical Tips for Individual Investors

1. Three Different Trading Hours, Same LO Order

HOSE, HNX, and UpCom differ in the types of orders allowed at different times. However, if you are a novice trader, LO (Limit Order) is the safest choice because it can be used throughout trading hours on all exchanges.

2. Consider the 15-Minute Difference

Derivatives open 15 minutes earlier. This means you can react faster to international market signals but requires more careful attention.

3. Avoid Cash Flow Bottlenecks with Planning

If you need funds on a specific day, work backwards from the settlement date. If you need T + 1 (bond), trading on Thursday afternoon is still feasible. If you need T + 2 (stocks), trading on Thursday afternoon might extend to the following week due to the weekend.

4. Leverage Optimal Trading Hours

Each exchange has its strengths. HOSE’s ATO helps with opening price discovery, HNX offers flexible after-hours trading, and UpCom is simple and suitable for beginners.

Understanding stock trading hours not only helps you avoid technical mistakes but also lays the foundation for building truly effective trading strategies.