Adjustment of sector and changes in sector level

Adding and removing sectors and sector levels

Due to the characteristics of the Vietnamese economy, it is possible for companies with special business to be formed and listed on the stock market. FiinPro-X will add new sectors or sector levels to accurately reflect the business areas of these companies. In addition, FiinGroup regularly updates the latest version of the ICB sector classification to supplement changes in this sector classification system (if necessary). Compared to ICB Version 4.0, FiinPro-X's current sector system has not added or removed any sectors or sector levels.

Changes in sector levels

Changing the sector levels in the ICB system aims to make the system more suitable for companies listed on the Vietnamese stock market. In addition, differences in accounting systems are also considered as a differentiating factor among companies in the same sector. Compared to ICB Version 4.0, StoxPlus has adjusted the sector classification as follows:

• Level 1: Adjusting the banking sector from level 2 to level 1 (8300) due to: (1) Differences in accounting systems between banks and other listed companies. (2) The stocks of banks have a significant impact on the overall market trend.

• Level 2: No changes

• Level 3:

  • Not adding the Alternative Energy sector (0580).

  • Not classifying the Equity Investment Instruments (8980) and Non-equity Investment Instruments (8990) sectors, replaced by the Investment Fund sector (8980).

• Level 4:

  • Not classifying the Renewable Energy Equipment (0583) and Alternative Fuels (0587) sectors because there is no Alternative Energy sector (0580) at level 3.

  • Not classifying the Conventional Electricity (7535) and Alternative Electricity (7537) sectors from the Electricity (7530) sector at level 3.

  • Not classifying the sub-sectors of the Real Estate Investment & Services (8630) and Real Estate Investment Trusts (8670) sectors.

Current sector structure of FiinPro-X

The latest sector classification system of FiinPro-X, applied since August 2009, includes 11 level 1 sectors, 19 level 2 sectors, 39 level 3 sectors, and 103 level 4 sectors (see Appendix 2).