Simplify Procedures for Foreign Investors in Vietnam Securities Market

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)

Disclaimer: This Briefing is for information purposes only. Its contents do not constitute legal advice and should not be regarded as detailed advice in individual cases. For more information, please contact us or visit the website: Http://

New Legal Framework for Vietnam’s Nascent Derivative Securities Market

The Law

On 5 May 2015, the Government issued Decree No. 42/2015/ND-CP on derivative securities and the derivative securities market, which is considered as the very first legal framework for the derivative securities market of Vietnam to come into operation in 2016.

This Decree recognizes futures contracts, options and forward contracts of which objects are underlying assets being securities and/or other assets used as the basis for fixing the value of the derivative securities as derivative securities. There will also be other kinds of derivative securities as recognized in accordance with guidelines of the Ministry of Finance. These newly recognized derivative securities may be traded on the derivative securities market as provided by the laws.

In principle, any organization or individual may invest in derivative securities on the derivatives market, except for certain organizations, such as securities companies, fund management companies, credit institutions and State-owned companies, which must satisfy certain requirements before investing in the market.

Furthermore, for the purpose of conducting derivative securities trading and/or providing derivative securities clearance and payment services, an organization will need to obtain a certificate of satisfaction of conditions for the respective activities issued by the State Securities Commission. To obtain this certificate, in general and subject to activities registered to be conducted, the organization must satisfy a number of conditions, such as financial conditions, i.e. minimum charter capital; conditions on business results, ratios of available capital, professional rules and/or relevant requirements to be provided by the Ministry of Finance; and other conditions as provided.

What does this mean for businesses?

Through there has been a legal framework for securities trading in Vietnam since the introduction of the Law on Securities (70/2006-QH11), Decree 42/2015/ND-CP allows for more diversified securities products in the Stock Exchange, thus boosting liquidity in the securities market which will be great news for businesses that are increasingly using the Stock Market as a capital channel. Accordingly, Decree 42/2015/ND-CP is expected to support the securities market of Vietnam, increase competitiveness and help to narrow the gap between securities market of Vietnam and of other countries all over the world.

Decree 42 will take effect on 1 July 2015.


By Vietnam Law Insight.

Disclaimer: This Briefing is for information purposes only. Its contents do not constitute legal advice and should not be regarded as detailed advice in individual cases. For more information, please contact us or visit the website: Http://