Vietnam Margin Trading Surpasses 303,000 Billion VND: Opportunities and Perils for Young Investors in 2025

Vietnam's securities industry has just recorded an unprecedented credit milestone of 303,000 billion VND - a level never seen before in history. But is this truly a golden opportunity for young investors, or a warning sign of lurking risks? And why might the 14 billion VND insurance compensation for the Vinh Xanh ferry accident offer important risk management lessons for you personally? These two financial stories, though different in scale, both point to one thing: the era of emotional investing is over - now is the time for smart strategy.

What Does 303,000 Billion VND Really Mean? Financial Leverage "Dominates" the Market

Imagine this: 303,000 billion VND is the amount all Hanoi residents would need to work continuously for 15 years to earn. This sum, equivalent to 12.5 billion USD, is currently circulating in the margin credit system of securities companies - something unprecedented in Vietnam's market history.

But what does this impressive figure actually mean? Simply put, more and more Vietnamese people, especially Gen X and millennials, are deciding to "borrow money to invest." They're not just using their own savings but also utilizing "leverage" - borrowing additional funds from securities companies to buy more stocks.

According to data from the Vietnam Securities Depository Center, individual investor accounts increased 28% in 2024, with the 25-35 age group representing the highest proportion. Remarkably, 67% of these have used or are currently using margin services at least once.

So is this good or bad news? The answer isn't simple. On one hand, it shows strong confidence from young people in the domestic stock market. On the other hand, according to internal surveys from the Vietnam Association of Securities Companies, only 34% of investors under 30 fully understand "margin calls" - situations where securities companies require you to deposit additional money or sell stocks when your account losses exceed limits.

A True Story: When Margin Call "Knocks on Your Door"

Lan Anh, a 29-year-old marketing employee in Ho Chi Minh City, still remembers clearly the day she received a call from her securities company: "Ms. Anh, your account is 45 million VND in the red. You need to deposit more money or cut losses before 2 PM today."

"I was in a meeting with clients when I heard that, and I just wanted to cry. I started using margin last year with a 1:1 ratio, meaning if I had 100 million, I'd borrow another 100 million to buy 200 million worth of stocks. Initially, I made good profits, thought it was easy, so I increased the ratio. When the market corrected sharply in March, I truly understood what margin call meant," Lan Anh shares.

Lan Anh's story isn't an exception. According to statistics from Ho Chi Minh City Stock Exchange, up to 18% of margin transactions in Q2/2025 ended with margin calls, primarily from investors with less than 2 years of experience. This figure is three times higher than the same period last year.

"Fortunately, I managed to get a bank loan to 'rescue' my account, but the lesson is you must have a risk management plan from the start. Now I only use margin at a maximum 30% ratio and always keep a cash reserve fund," she adds.

But why do so many young investors fall into the margin call "trap"? The answer lies in psychology: when they see profits, everyone wants to "add fuel to the fire." When they see losses, they think they can "recover." The danger with margin is that it amplifies both gains and losses - and usually losses come faster than you think.

Lessons from the Vinh Xanh Ferry Accident: "Insurance" for Investment Portfolios

While everyone is excited about record credit figures, the Vinh Xanh ferry accident with 14 billion VND in compensation brings a completely different perspective on risk management.

14 billion VND may seem small compared to 303,000 billion, but for that shipping company, this figure could determine survival. Fortunately, they had purchased insurance. What about you? Is your investment portfolio "insured"?

No, I'm not talking about buying insurance for stocks (since such products don't exist). I'm talking about applying "insurance" thinking to investing: always prepare for the worst-case scenario.

According to the Vietnam Insurance Association, the non-life insurance market grew 15.2% in 2024 - showing improving asset protection awareness. But interestingly, while businesses increasingly focus on insurance, only 23% of young people aged 22-30 have at least one personal insurance product.

Even more paradoxically: this same age group is willing to go "all-in" on margin trading without any "insurance" measures for their investment portfolios.

So how do you "insure" your investments? It's simpler than you think:

• Diversification: Never put all eggs in one basket
• Automatic stop-loss: Set loss-cutting levels in advance, don't let emotions decide
• Reserve fund: Always have at least 6 months of expenses in savings
• Reasonable margin ratio: Never exceed your financial capacity

Safe Investment Formula: The 50-30-20 Rule and "Iron" Psychology

Given the current market context, how can you take advantage of margin opportunities while still sleeping soundly? These are the "survival" principles every young investor needs to know: