VDS

Vietnamese securities companies face rising risks from higher interest rates, including unrealized losses on corporate bonds, heavy reliance on short-term bank loans (88% of debt), and margin-to-equity ratios nearing the 200% regulatory cap at firms like HCM (195.4%) and MBS (177.6%). The sector's total assets surged 48% to VND 904 trillion in 2025, driven by margin lending and equity raises.

Rong Viet Securities (VDS) plans to issue VND 300 billion in non-convertible, unsecured bonds on May 12, 2026, to restructure debt. The move follows a net loss of VND 29.5 billion in Q1/2026, contrasting with a profit of VND 19 billion a year earlier, as provisioning costs surged 8.9x.

In the first week of May, the VN-Index set a new record high of 1,915.37 points, up 3.3%, driving a sharp rotation into securities stocks. VDS saw trading volume jump nearly 120% and ORS nearly 100%, while real estate and steel stocks experienced declining liquidity. The shift highlights investor preference for brokerages during the index rally.

Viet Dragon Securities (VDS) approved a 2026 business plan targeting pre-tax profit of 510 billion VND, a 47% increase from the previous year, despite reporting an estimated Q1 2026 loss of about 30 billion VND. The company cites expectations from Vietnam's market upgrade and stabilizing interest rates as key drivers for its ambitious recovery plan.

40 Vietnamese securities companies posted aggregate net profit of nearly VND 7,600 billion in Q1 2026, the lowest in four quarters, with 17 out of 40 firms reporting losses or declines. Proprietary trading losses and narrowing margin lending spreads drove the weakness, highlighting the sector's vulnerability to market volatility and competitive pressure.

The Vietnamese securities sector (40 firms) reported total profit of nearly 7,600 billion VND in Q1 2026, the lowest in four quarters, with 17 out of 40 companies posting losses or declines. Proprietary trading losses and margin lending margin compression were the main drags, with EVS alone losing 157.5 billion VND. The results highlight the risk of aggressive proprietary trading strategies amid geopolitical volatility.

Viet Dragon Securities (VDS) estimates a Q1 2026 net loss of approximately VND 30 billion, driven by increased provisions for its proprietary trading portfolio amid unfavorable market conditions. The company maintains its full-year 2026 targets of VND 1,318 billion in revenue and VND 408 billion in net profit, representing growth of 20% and 45% respectively, while shifting strategy towards deal-based margin lending.