The vietnamese financial sector especially the securities market 0013

impressive at 1.84%, the lowest in the past six years, mainly because of the already
weak demand and slow cash conversion.

Figure 2.1: GDP Growth rate of Vietnam from 2011 to 2021
(Source: General Statistics of Vietnam - GSO)
Overall, compare to the average performance internationally, Vietnam successfully
maintained a healthy economy, creating a steady pedestal for the upcoming years
and recognitions from international organizations.
2.2. The Stock Market of 2020 and 2021:
The Vietnamese stock market in 2020 and 2021 has undergone an upsurge with
many records being recorded. This is thanks to both the effect of the international
stock market and the effort of the Vietnamese government to maintain and develop
an outburst stock market.
The stock market started off 2020 with an unpleasant result as VN-Index fell to 659.2
points on March 24th, 2020, down 33.5% from the peak on January 22nd, 2020, after
just three weeks of growth. Nevertheless, VN-Index made an impressive recovery as it
regained all its lost points and further rose to 1,103.9 points at the end of 2020,
increased by nearly 15% from 2019. One of the highlights of the stock market in 2020
is the upheaval of liquidity thanks to the explosion of new investors (F0 investors)
since April 2020. The average transaction value in 2020 shot up to VND 7,543 billion
(a 56.1% increase) due to the rapid increase of domestic cash flows into the stock
market, mainly came from F0 investors. According to Vietnam Securities Depository,
in 2020, approximately 400,000 new trading accounts were opened. Generally, this
phenomenon can be resulted from financial conditions being loosen with measures
such as lowering