Vietnam's Brokerages in Capital Surge Race: TCBS Poised to Overtake SSI

Vietnam's brokerage sector is witnessing an intensified capital expansion race. SSI Securities recently became the first in Vietnam to surpass 30 trillion VND in charter capital, but its leading position is expected to be short-lived. Techcom Securities (TCBS) has announced plans to increase its capital to over 33 trillion VND, aiming to reclaim the top spot. TCBS plans to issue approximately 555 million new shares at a ratio of 5:1 as a stock dividend for 2025. This capital increase is expected to raise TCBS's charter capital from its current approximately 27.744 trillion VND to around 33.293 trillion VND, making it the largest brokerage by charter capital, surpassing SSI. A significant portion of the new shares will go to Techcombank, TCBS's parent company, which holds a 79.81% stake. This capital surge is a broader trend among Vietnamese brokerages. VIX Securities and MBS Securities have also increased their capital, and HSC Securities and ASEAN Securities are proceeding with their own expansion plans. These firms are raising funds through various methods, including stock dividends, rights offerings to existing shareholders, private placements, and employee stock ownership plans (ESOPs). The primary purpose for brokerages increasing their capital is to provide margin loans to investors and to fund their proprietary trading activities. In 2026, many companies are expected to focus on margin lending, with VNDIRECT, Vietcap, MBS, and Kafi being notable examples. SSI is also allocating a portion of its raised capital to margin loans. Conversely, some companies are prioritizing proprietary trading. BMSC and ABS are among those focusing on this area. TCBS is also balancing its capital allocation between margin lending and proprietary investments. Furthermore, many brokerages are increasing their investments in new technologies and products such as AI, blockchain, and digital assets. This capital expansion race reflects Vietnam's economic growth, the expansion of its securities market, and a rising appetite for technology investments. Under its one-party system, economic growth is crucial for the legitimacy of the Vietnamese government, and the healthy development of the financial sector is a key pillar supporting this growth. In the context of complex relations with China, strengthening the domestic economy is a significant priority for Vietnam, with the deepening of financial markets being an integral part of this strategy. Source: The Saigon Times