Vietnamese stocks open to foreign capital with new reforms

Vietnam's stock market is implementing significant reforms aimed at simplifying procedures and attracting foreign investment. These new mechanisms are designed to streamline trading processes and reduce conditions, making it easier for international investors to participate.

Cao Thị Ngọc Quỳnh, Director of Institutional Clients at VNDIRECT, highlighted that Vietnam has shortened procedures and reduced conditions for businesses and investors, aligning with international standards. Under the latest mechanism, non-resident foreign investors only need a trading code and a custody account to place orders through global securities firms. The account opening and identification process, once a bottleneck, has been significantly streamlined with automated verification, saving considerable time.

Phạm Thị Thùy Linh, Head of Market Development at the State Securities Commission (SSC), confirmed that non-resident foreign investors can now place orders via global custodians like UBS or Morgan Stanley. These firms will coordinate with domestic custodians and securities companies to execute trades. This approach allows investors to continue using familiar global partners without needing direct contracts with Vietnamese securities firms, simplifying transactions.

Vũ Thị Chân Phương, Chairwoman of the SSC, emphasized that Vietnam is actively implementing reforms to enhance market accessibility for foreign investors. Key measures include a trading mechanism that does not require pre-funding for foreign institutional investors and simplified procedures for opening indirect investment and trading accounts. The SSC plans to launch a central counterparty (CCP) mechanism in the first quarter of 2027 and propose amendments to the Securities Law to bolster market supervision and transparency.

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