The Top 10 Private Securities Firms Contributing to Vietnam’s Economy

Aside from investing in business development and contributing to the country’s economic growth and job creation, community engagement and social initiatives, paying taxes is also a significant way for enterprises to demonstrate their commitment to Vietnam’s progress.

Currently, there are numerous honorary boards for businesses, but none specifically recognize their tax contributions. In reality, enterprises annually pay a variety of taxes and fees to the government.

Cafef aims to create a list recognizing the top private enterprises in Vietnam that contribute the most to the state budget, aptly named PRIVATE 100. All enterprises with a minimum contribution of 100 billion VND in the latest fiscal year are eligible for inclusion. The list below honoring the top 10 private securities companies is an extension of this initiative. A similar list for private banks was also published last week.

Data analysis reveals that for the securities sector, the primary taxes paid are corporate income tax and personal income tax (for employees and investors).

As one of the vital drivers of Vietnam’s economy, securities companies have made, and continue to make, significant contributions to the state budget. Consolidated audited financial statements show that in 2023, the top 10 securities companies contributed a combined total of nearly 7,900 billion VND to the state budget.

2023 was a year of turbulence for the stock market, and securities companies faced numerous challenges due to unpredictable external factors. However, their agility and sound business strategies helped them overcome these difficulties to achieve commendable results.

In 2023, the securities companies’ combined pre-tax profits were estimated at nearly 22,000 billion VND, a 40% increase compared to 2022. Thus, the top 10 securities companies’ state budget contributions (including corporate income tax, personal income tax, VAT, and contractor tax) accounted for nearly 36% of the industry’s total profits.

According to consolidated financial statements for 2023, the top 10 securities companies in terms of state budget contributions are VPS, TCBS, SSI, VNDirect, HSC, Vietcap, VPBankS, HDBS, TPS, and ACBS. Notably, the top three companies each contributed over 1,000 billion VND in 2023.

This reflects the securities companies’ dedication to fulfilling their legal and social responsibilities and their commitment to sustainable community development. It also underscores the importance of securities companies in contributing to the country’s economic and social stability and growth.

By being transparent and honest in their tax payments, securities companies not only build trust with the community and their clients but also enhance their reputation with shareholders. The taxes paid go towards funding critical areas such as education, healthcare, infrastructure, and national defense, ultimately contributing to Vietnam’s socioeconomic development.

In reality, the securities sector is quite unique, with a history spanning almost three decades but only experiencing a boom in the last few years. The influx of new investors since 2020 has transformed the industry, bringing unprecedented vibrancy to the stock market and creating an environment for securities companies to thrive and establish their prominence.

Considering Vietnam’s population of nearly 100 million, the number of securities investors is still modest, indicating significant room for growth in the future. Moreover, the securities market is one of the most critical capital mobilization channels for the economy, alongside bank credit. The role of securities companies will only become more prominent, especially with Vietnam’s market upgrade from frontier to emerging status.

Thanks to the efforts of regulatory agencies and market members, the upgrade process is progressing positively. A successful market upgrade is expected to usher in a new era for Vietnam’s securities industry, providing a boost for securities companies to achieve breakthrough growth and further increase their state budget contributions in the future.

According to the Ministry of Finance, personal income tax revenue for the first seven months of 2024 is estimated at approximately 114,687 billion VND, reaching 72% of the estimate and a 15% increase compared to the same period last year. This growth is attributed mainly to increased taxes from real estate and securities transfers, which rose by 65% and 32%, respectively.

Personal income tax is one of 14 tax categories that have achieved over 65% of the annual plan. Some other categories with good progress include lottery tax, which reached 32,700 billion VND, and revenue from state capital investment in economic organizations, which amounted to about 17,700 billion VND. In the first seven months of 2024, total tax revenue exceeded 1 million billion VND, a nearly 15% increase compared to the same period.