Vietnam Stock Trading Calendar 2022: A Detailed Guide for Investors

One of the most common mistakes among new investors is not understanding the trading hours of the market. You may have a great strategy, but if your orders are submitted outside of trading hours, everything becomes useless. This is because orders placed after the market closes will not be executed immediately but will have to wait until the next session, when prices may have changed significantly due to events during the downtime.

In Vietnam, the stock market is divided into three main exchanges: HOSE, HNX, and Upcom, each with its own regulations regarding trading hours. Similarly, around the world, from NYSE and NASDAQ in the US to JPX in Japan, LSE in the UK, or SSE in China, each has different trading schedules. Understanding these regulations is a prerequisite for successful investing.

Vietnam Stock Market: From Small Beginnings to Sustainable Growth

Over the past two decades, the Vietnamese stock market has undergone remarkable changes. Initially, there were only two stocks (REE and SAM), but today it has developed into a market with over 1,600 listed companies, with a total capitalization of 4 quadrillion VND (equivalent to 171 billion USD). This demonstrates the market’s maturity and attractiveness.

Especially, the derivatives market, although only operating for 3 years, has recorded impressive growth with trading volume increasing 3.3 times annually. This is an effective risk management tool used by many professional investors. To maximize the benefits of these two markets, the first step is to understand their operating mechanisms and trading hours.

Derivatives Trading Hours: The Start of an Exciting Trading Day

A detail many investors overlook is that derivatives trading hours start earlier than the underlying securities market. Specifically, the derivatives market opens at 8:45 AM, while the underlying securities market has not yet started. Currently, this market only has two products: the VN30 index and the 5-year Government Bond Futures.

The schedule for derivatives trading hours is divided into two sessions: morning from 8:45 to 11:30, then a lunch break until 13:00, followed by the afternoon session from 13:00 to 14:45. Professional traders often utilize this first 15-minute window to adjust positions and predict market directions for the day.

Underlying Securities: Detailed Trading Hours Structure on Three Exchanges

HOSE - The Leading Market

HOSE operates from 9:00 AM to 3:00 PM (GMT +7), Monday through Friday. During the day, trading is divided into phases with different order types:

• 9:00-9:15: Opening periodic matching session with ATO and LO orders
• 9:15-11:30: Continuous matching, allowing various order types such as LO, MP, MOK, MAK, MTL
• 11:30-13:00: Lunch break
• 13:00-14:30: Continued continuous matching
• 14:30-14:45: Closing periodic matching session (ATC)
• 14:45-15:00: End of negotiated trading

Bonds have their own schedule with negotiated trading from 9:00-11:30 and 13:00-15:00, without periodic matching.

HNX - Flexibility in Rules

HNX operates similarly to HOSE in overall timing (9:00-15:00), but with some key differences. This exchange does not have an opening periodic matching session (ATO), instead using continuous matching from 9:00. However, HNX has a after-hours trading period from 14:45-15:00 with PLO (Plug order), allowing final negotiated trades.

Upcom - Simplified Structure

Upcom is the most different in that it does not have any periodic matching sessions (no ATC, no ATO). This market uses continuous matching from 9:00-11:30 and 13:00-15:00, allowing only LO, MP, MOK, MAK, MTL orders. This is the simplest structure, suitable for less experienced investors.

Payment Schedule: An Important Factor to Avoid Cash Flow Issues

Many investors focus on trading times but forget about payment schedules. If you’re not careful, you could get stuck with cash flow issues without understanding why.

In the Vietnamese market, payment times are based on three standards:

• T+0: Payment on the same successful trading day
• T+1: Payment one day after trading
• T+2: Payment two days after trading (excluding Saturdays, Sundays, and holidays)

For bonds, the settlement period is T+1. Stocks, closed-end fund certificates, and ETF certificates are settled on T+2. This means if you sell stocks on Thursday, the money will be credited to your account on Monday or Tuesday of the following week (excluding holidays), not the next day.

Essential Tips for Individual Investors

15-minute difference can change everything

The three Vietnamese exchanges do not operate entirely simultaneously. CKPS starts 15 minutes earlier than CKCS. Although seemingly minor, this 15-minute window can be when major market events occur, potentially changing your entire strategy.

Choosing the right order type

If you are a beginner, focus on LO (Limit Order). This is the simplest order type, usable throughout the entire trading session on all three exchanges. Other order types like MP (Market Order), MOK, MAK, or MTL are only available during certain periods and require a deeper understanding of market mechanisms.

Prepare for weekends

The stock market closes on Saturday, Sunday, and holidays. If you sell stocks on Thursday late afternoon and wait for T+2 settlement, the money will be credited to your account on Monday or Tuesday. Plan your finances accordingly to avoid surprises.

Conclusion

The Vietnamese stock market operates about 250 days a year, with detailed regulations on trading hours for each exchange. Despite differences, the common goal is to ensure smooth and fair market operation for all investors. Understanding these details is not just theoretical knowledge but a foundation to avoid costly trading mistakes. Take the time to master these rules before placing your first trade.