“We are aware of the difficulty of participating in providing derivative securities services after many other securities companies. Therefore, in addition to building the system and technology infrastructure to bring the optimal experience to customers, KB Securities Vietnam Company (KBSV) is in the process of developing and planning to launch attractive and breakthrough products which bring maximum benefits to investors” - Said Mr. Nguyen Duc Hoan, CEO of KBSV when discussing with Vietnam Financial Times reporter.
- How do you assess the development of Vietnam's derivatives market in the past time?
The derivative stock market in Vietnam, although still quite young, has also early shown the development potential through the outstanding growth in value, trading volume and the number of contracts opened now.
Statistics from the past show that the average trading value of the future contracts of VN30 index from the beginning of 2019 has increased by over 40% compared to the average of 2018 and 10 times larger than the average of 2017. With the advantages of level of leverage and risk management tools for the underlying market, as well as seeking profits when the market falls, the derivatives market is attracting more and more participation of investors.
However, we also recognize that the majority of trading value on derivative securities market comes from individual investors (accounting for over 90%), this is partly due to the lack of diversity of products on derivatives market, as well as the transaction value is not large enough to attracts fund. In the coming time, I expect the above issues to be partly solved to increase the attractiveness of derivatives market to become a common playground for both individual investors and institutional investors.
- As a company that implements derivatives after a number of large securities companies in the market, what preparation does KBSV have to create a breakthrough in providing derivative services to attract investors?
As the following participant in the derivatives market, we are aware of the difficulties we face in the process of building customer base, branding and operation systems creating,... when other securities have been operated for a while and gradually become stable.
Therefore, in addition to building the system and technology infrastructure to bring the optimal experience to investors, KBSV is also in the process of developing and planning to launch breakthrough product to bring maximum benefits to investors. In addition, KBSV will also focus on supporting customers through in-depth analysis, evaluation and investment advisory products to increase investment efficiency.
Similar to the basic market, our goal for derivatives market in early time is to attract investors, increase market share as well as reputation and brand on market.
- The derivative market has begun to receive more foreign investors' participation, which include Korean investors. Is this one of the main reasons for KBSV to quickly increase chartered capital to provide derivative securities services?
We can observe that Korean investors are increasingly interested in Vietnam's stock market through indirect investment value data (FII), as well as a lot of large-scale stock buying deals in the market with the participation of Korean investors recently. Along with this trend, there are also a large number of Korean investors who have been gradually paying more attention to derivative products on Vietnam stock market.
As a Korean-invested securities company, KBSV also partly benefits from this phenomenon. However, this is not the main motivation and reason for KBSV to rapidly increase chartered capital to provide derivative securities services. In fact, the company has always determined to provide a full and diversified product market to improve service quality, enhance competitiveness, thereby expanding customer network with the main object is still domestic investors, thereby increasing market share.
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As you shared, managements of KB Financial Group and KBSV have set a high expectation for derivative services. What is the basis for you and KBSV to be confident about that?
KBSV considers the potential of the derivatives market in Vietnam to be very large in long term. To better understand this issue, we can look at the booming process of derivative market in both developed and developing countries with a wide variety of products and capital inflows attractiveness. However, the pace of development will depend on the system connecting ability and the new diverse products deployment which meeting both profit seeking and the risk prevention demand of investors.
On KBSV side, with the advantage of being supported by KB Securities Korea, not only in capital, but also in derivative products implementation in Korea experience, we believe that it will be able to launch products with outstanding advantages and satisfy customers' needs.
Thank you for your answer!
*Source: http://thoibaotaichinhvietnam.vn/pages/chung-khoan/2019-06-18/se-co-goi-san-pham-phai-sinh-dot-pha-toi-da-loi-ich-cho-khach-hang-72805.aspx?fbclid=IwAR25d5HTAPNmpGFwzPbukHykYozxrLZTLc4Vu2hPUqfhmdCozvJkPBhevYg