Circular No. 123/2015/TT-BTC on providing guidance of foreign investment activities in Vietnam securities market.
The Ministry of Finance issued the Circular No. 123/2015/TT-BTC (“Circular No. 123”) regarding Vietnam securities market. This Circular No. 123 shall take effect on 01 October 2015.
Circular No. 123 stipulates detailed procedures and guidance on dossiers for foreign investors in terms of registering the online securities transaction codes. In addition, Circular No. 123 shall simplify the procedures for market participation of foreign investors in Vietnam stock market, by minimizing the number of required dossiers; abolishing the procedure of legalizing consular records with documents and English documents not necessarily translated into Vietnamese, among others.
Additionally, Circular No. 123 provides detailed procedures or manual records to public companies regarding increasing the percentage of ownership of foreign investors as stipulated in Decree No. 60/2015/ND-CP.
Circular No. 123 is expected to create favorable conditions for foreign investors in securities market of Vietnam. It can help listed companies in mobilizing capital from foreign investors.
With the issuance of Circular No. 123, an important reform shall be inherently created. Not only does the reform improve the attractiveness of Vietnamese stock market in comparison to other neighboring stock markets to facilitate foreign investors to enter in the Vietnamese stock markets but also the effort will go hand-in-hand with the regulations allowing foreign investors to obtain more ownership in accordance with Decree 60/2015 that will enter into force on 01 September 2015. Circular No. 123 shall also contribute to forming an attractive stock market for foreign investors.
By Vietnam Law Insight (LNT & Partners)
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