What are regulations on organizing the securities market in Vietnam?

Nội dung chính

• What are regulations on organizing the securities market in Vietnam?
• Are representative offices in Vietnam of foreign securities companies allowed trade securities?
• What are regulations on representative offices in Vietnam of foreign securities companies and fund management companies?

What are regulations on organizing the securities market in Vietnam?

What are regulations on organizing the securities market in Vietnam according to the new law?

Answer: Pursuant to Article 42 of the Securities Law 2019 stipulating organizing the securities market:

1. VSE and its subsidiaries are entitled to organize a market for listed securities; securities of state-owned enterprises, wholly state-owned single-member limited liability companies; securities of other enterprises that are not qualified for listing; securities of startups; derivatives and other kinds of securities.

2. No other organizations and individuals than VSE may organize and operate the securities market.

Are representative offices in Vietnam of foreign securities companies allowed trade securities?

My securities firm is established abroad. I know that the National Assembly recently passed a new Securities Law; will this new law allow my company to open a representative office in Vietnam? Is it possible for this representative office to engage in securities trading? Thank you very much!

Answer: Pursuant to Clauses 1 and 3, Article 78 of the Securities Law 2019: 

1. A foreign securities company or foreign fund management company may establish a representative office in Vietnam when:

a) It is licensed and has been lawfully operating in this home country;

b) The home country’s licensing authority and SSC has entered into a mutual or multilateral agreement on information exchange, management, inspection, supervision of securities activities and securities market, or the company has been managing investment funds in Vietnam; the remaining operating period is at least 01 years.

 3. Representative offices of foreign securities companies and foreign fund management companies must not trade securities.

=> Thus, based on the above the information you provide, your securities company is allowed to establish a representative office in Vietnam. However, this representative office is not allowed to conduct securities trading activities.

What are regulations on representative offices in Vietnam of foreign securities companies and fund management companies?

What are regulations on representative offices in Vietnam of foreign securities companies and fund management companies?

Answer: Pursuant to  Article 78 of the Securities Law 2019 stipulating representative offices in Vietnam of foreign securities companies and fund management companies:

1. A foreign securities company or foreign fund management company may establish a representative office in Vietnam when:

a) It is licensed and has been lawfully operating in this home country;

b) The home country’s licensing authority and SSC has entered into a mutual or multilateral agreement on information exchange, management, inspection, supervision of securities activities and securities market, or the company has been managing investment funds in Vietnam; the remaining operating period is at least 01 years.

2. The representative office in Vietnam of a foreign securities company or fund management company has one, some or all of the following activities:

a) Communication office and market research;

b) Facilitate development of projects for cooperation in securities and securities market in Vietnam;

c) Expedite and supervise implementation of agreements between the company and Vietnamese business organizations;

d) Expedite and supervise execution of the projects in Vietnam funded by the company.

3. Representative offices of foreign securities companies and foreign fund management companies must not trade securities.

4. SSC shall issue certificates of registration; manage and supervise operation of representative offices in Vietnam of foreign securities companies and foreign fund management companies.

Best regards!