After a prosperous 2021, the VN Index continued staying at the historic peak for the first three months of 2022. However, later, the market declined, putting itself into the list of markets with sharpest decreases in the world. As of December 27, the VN Index had dropped to 1,004.57 points, or 34.2 percent lower than the 1,520-point gained in April.

2022 was a year of records. In some months, half a million trading accounts were opened. Foreign investors’ net purchases reached a record high. The liquidity of some shares at times reached hundreds of millions of units each trading session.

In November and December, the market witnessed the strongest recovering sessions in the world.

Stocks climb to peaks, fall to lows

A high number of stocks reached an all-time high with prices increasing by 5-7 times, or even tens of times within a short time, but later plummeted, causing investors to panic.

DIG price of DIC Corp, for example, soared from below VND10,000 per share in late 2020 to VND100,000 in early 2022. 

Analysts once predicted that its price may hit VND500,000 per share. No one could imagine that the DIG price would plunge to VND10,000 per share in early November.

It was also a big surprise that Novaland (NVL), the leading real estate firm in the south owned by billionaire Bui Thanh Son, dropped to VND13,100 per share on December 27 from VND95,000 earlier this year.

Even VIC (Vingroup) and Vinhomes (VHM) of billionaire Pham Nhat Vuong dropped to VND50,000 per share.

A record was set in January 2022 when 135 million FLC shares were traded within one session, or 20 percent of shares in circulation, and 10 percent of HOSE’s (HCM City Stock Exchange) liquidity. 

But the record was broken on November 30 by a player in the north, Hai Phat Invest (HPX), with 165 million shares changing hands.

Share manipulation

In August 2022, agencies confirmed that Trinh Van Quyet, who was then president of FLC, manipulated stock prices from early December 2021 to January 10, 2022.

Quyet, together with his co-workers, pushed prices of shares to a sky-high level and then sold the shares he had bought at low prices for profits.

The State Securities Commission (SSC) then released a decision on canceling the transaction.

According to the Ministry of Public Security, Quyet also manipulated the prices of many other shares.

Agency leaders disciplined

In mid-May 2022, the Central Inspection Committee held its 15th session and disciplined collectives and individuals involved in violations of the SSC Party Committee.

The committee warned the SSC’s Party Committee of the 2015-2020 and 2020-2025 tenures. 

It also expelled Le Hai Tra, Party Committee Secretary, General Director of HOSE, from the Party. Tran Van Dung, member of the Committee of the Party Committee of the Ministry of Finance, Secretary of the Party Committee of the Agency, and SSC chair, was dismissed from all positions in the Party. 

Warnings were also given to Vu Bang, former Secretary of the Party Committee, former Chair of SSC; Nguyen Thanh Long, member of the Party Committee of the Ministry of Finance, Secretary of the Party Committee of the Hanoi Stock Exchange (HNX); and Nguyen Son, Secretary of the Party Committee, chairman of the Board of Directors of the Vietnam Securities Depository Center.

Corporate bonds frozen

The bond market became frozen in the second half of the year following scandals with Tan Hoang Minh and Van Thinh Phat, and the draft decree 65 that amended Decree 153.

Many enterprises decided to restructure their debts and bought back VND164 trillion worth of bonds within 11 months.

Foreign investors pour money into VN

Foreign investors’ net purchases were high in November and December, totaling VND29 trillion. The net purchases for the entire year were estimated at VND27 trillion.

Net purchases worth tens of trillions of VND made within two months were unprecedented in the previous four years.

Changes in policies

In 2022, the payment cycle was shortened to T+2. This is a big step showing great efforts to help upgrade the market ranking.

HOSE in September 2022 allowed securities investors to transact small lots of securities again.

Manh Ha