Kim Long, one of Vietnam's top 20 brokerage houses, has announced its exit after 10 years of operation, citing poor business amid harsh competition.
The Hanoi-headquartered company, with a chartered capital of over VND2 trillion (US$88.88 million), is set to file for dissolution by the middle of next month, before delisting in August, the Ministry of Planning and Investment's news website Dau Tu (Investment) reported on Monday.
Kim Long made the move after posting VND68.4 billion ($3.06 million) in losses last year, blaming it on the global oil slump and the resulting decline of energy stocks. It recorded a net profit of VND144.8 billion ($6.49 million) in 2014.
Although its business improved in the first quarter this year with a net profit of VND3.8 billion ($170,000), the company said it has decided to pull out, according to the website.
Kim Long hardly can compete with other companies in Vietnam's small yet overcrowded securities market, it said, also blaming the government for not allowing brokerage firms to make "big, long-term and decisive investments."
Vietnam's securities sector has been given a major overhaul. Around 80 securities companies are operating in the country, compared to 102 in 2010, according to figures from the State Securities Commission of Vietnam.
The 10 biggest brokerage firms account for more than half of the market's total revenue.
The stock market remains relatively small. The country's two bourses in Hanoi and Ho Chi Minh City posted a combined market capitalization of more than VND1,336 trillion ($59.88 billion) on Monday. That was equivalent to around 15.7 percent of Thai bourse's market capitalization.