An investor watches stocks on his computer. (Photo: vnreview)Hanoi (VNA) - Increasing internet and mobile network coverage haschanged the way Tran Van Toan, a stock investor with 15 years’ experience in Hanoi,does business.
Toan said the sight of people flocking to stock exchanges to place orders everyday was rare. It had been replaced with online transactions, which have manyadvantages.
“We investors can read corporate financial reports and world news on oursmartphones anywhere before making investment decisions,” Toan said.
Toan is one of many investors taking advantages of the fourth industrialrevolution (Industry 4.0), which is changing Vietnam’s economy, including the stock market.
Investors now conduct transactions online and brokerages can share informationwith their customers through Facebook, Zalo and Viber, instead of meetingclients in person.
However, insiders said that although Industry4.0 helps investors easily access corporate information, it doesn’t mean it’seasy to earn money.
Investor Nguyen Van Ngoc said there was now a lot of information for investors,but it was not always accurate – requiring investors to filter information fromvarious sources. “The more advanced technology, the more spam.”
“Stock investment is a long-term business. The investors need to evaluate thesituation before investing. If we invest in a company whose information hasbeen already published, it comes to nothing,” Ngoc said.
There are many excellent investors who have experience and financial knowledgeon the stock market, seeing investing as a profession.
Ngoc said investors previously earned a lot of money from the stock marketbecause many people did not know much about the market but still invested.
Today, there are many stocks available, but also many investors, creatingfierce competition."
The competition means that brokers too have to up their game.
According to Nguyen Duy Dinh, a customer service employee at the MB SecuritiesCompany, information between brokers and investors had been shared quicklythanks to new technology, however, brokers would have to be more active inseeking, searching and filtering information for investors.
“The brokerage requires intelligence, which is key to competing with othercompanies,” Dinh said.
In Vietnam, investors are heading to securities companies which have moderntechnology and giving preferential policies on transaction fees.
There are about 80 securities companies operating in the country, of which the10 largest occupy 70 percent of the market.
Nguyen Xuan Truong, deputy head of the product management division at the TanViet Securities JSC, said Industry 4.0 had created many challenges requiringsecurities companies to change. They needed to catch up with and take advantageof modern technologies, like artificial intelligence, Big Data and Internet ofThings.
In the online environment, Truong said information security must be a priority.In addition, the securities companies had to prepare financial and humanresources to modernise and digitalise their operations.
Insiders said that Industry 4.0 helped securities companies cut costs and havemore opportunities for investment, however it also meant brokers and analystscould be replaced with computers and robots.
“If Industry 4.0 is applied soon, it will help companies gain considerableadvantages in the market,” Truong added./.
VNA
