By maintaining their current operational paradigm, Vietnam is only hampering its own development and future. Being one of following types enterprises: shareholding enterprise, state own entities in process of conversion into limited liablility company or shareholding enterpris, and foreign inveted enterprise in Vietnam. Moody's Investors Service, meantime, hinted in October at a downgrade, voicing concerns about Hanoi's "institutional deficiencies." Vietnamese equities, as measured by the MSCI Vietnam Index, have underperformed the broader market with a total return of -6.1% over the past 12 months compared to … One of those “best efforts” is the amendment of the securities law that would make the market fairer between domestic and foreign investors (draft law to amend law on securities; last revised by Decree 60/2015/ND-CP). Not be on the list of businesses and trades in which participation by foreigners is prohibited, and it must satisfy the foreign ownership ratio stipulated in regulations. - disclosure of information. Vietnam’s capital markets are still in a relatively nascent stage. Restrictions on foreign Investment That 2015 revision eased restrictions on Foreign Ownership Limits (FOL); however, MSCI wants to see even further progress on relaxing those restrictions. On average, enterprises raised VNĐ20-30 trillion ($885 million - $1.3 billion) each year through the capital market. b. Shareholders of each company will decide for themselves the amount of foreign-owned shares eligible. We offer professional services to retail banks, capital markets, exchanges, financial intermediaries (ie. Personal income tax is imposed at the rate of 5% on any payment of dividends (on shares or fund certificates) or interests (on bonds). These results are remarkable in the context of a slowing global economy. Licensing requirements include minimum legal capital requirements, infrastructure requirements (for example computer systems) and staff qualifications. Vietnam’s benchmark VN-Index is “undervalued” compared to other countries’ indexes, according to fund management company Asia Frontier Capital. If Vietnam takes a hard look at the criteria that kept them from the upgrade, it is apparent that the solution for most of the roadblocks cited have already been addressed in the CPTPP, EVFTA, and EVIPA. When the information about the election result is officially announced, according to the media, investors will be more confident to implement disbursement, so the cash flow into the Vietnamese market will be stronger. The securities traded on the OTC trading market are usually those of small and medium companies that do not satisfy requirements for listing. - to register and deposit securities which are publicly issued and listed and traded on the stock exchanges and UPCoM; The SCIC is Viet Namâs sovereign wealth manager, the official entity assigned to manage State capital freed up by the âequitisationâ of State-owned enterprises. EuroCham would like to kick off the New Year with this unique event with our special guest speakers who will share their thoughts on the challenges and opportunities to the financial deepening agenda in Vietnam. Vietnam is Asia's fastest-growing economy and offshore market development has a pivotal role to play in Vietnam moving upmarket. CPTPP, EVFTA, EVIPA and Their Potential Effects on MSCI 2020. Accordingly, the tourism, hotel, service and aviation industries will benefit from this recovery. To account for these external risks, and to bring an additional engine of growth to the economy, the report recommends making the development of a strong and dynamic private sector a priority. Our comprehensive range of product and solutions could be combined and customised to meet your business’ specific growth ambitions and financial objectives. These include training services, technology companies and infrastructure projects. The Law on Securities provides the broad framework for securities regulation in Viet Nam, specifically legislating in the areas of: Registration of securities requires the submission of a dossier of registration. Regarding bonds, the issuing organization may regulate the limits on the percentage of ownership of circulating bonds of such issuing organization.  According to Nguyễn Thị Bích Nga, deputy director of the State Securities Commission’s International Co-operation Department, [Vietnam] has been making the best efforts to improve the legal framework, introduce new securities products and make the market more professional.. "I enjoy your publication and read it religiously. With the guarantee of no distinction between a foreign-investor and a domestic one, entities that have been reluctant to invest millions of USD in Vietnamese businesses will now feel much more comfortable about the investment environment; thus creating a large influx into Vietnamese capital markets. The total value of the fund certificates registered for the offer must have a minimum value of VND50 billion; and must have an issuance plan and a plan for investment of the funds obtained from the offer consistent with the applicable laws and regulations, 5. With yields trending lower and inflation tame, there's rarely been a better time for Vietnamese issuers to hit the international market. The types of securities that are traded on the two exchanges are limited to ordinary shares, fund certificates and bonds. Vietnam already boasts reasonable scale. Private firms also increased investment by 17 percent during the same period. But then Hanoi jumped 10 rungs higher in the space of 12 months. Keep on top of the latest from around the world. • The current state of Vietnam’s securities market • Challenges and hot issues. Introducing PRO ComplianceThe essential resource for in-house professionals. If you need any more information, or simply wish to ask a question, feel free to get in touch. Public funds, which may be âclosedâ or âopenâ to redemption requests, must comply with various requirements as to the number of investors and the minimum subscriptions. Its price earnings ratio (P/E) as of August 31 was 14.7 as against 27.3 for S&P500 Index in the U.S. and 21.3 for Thailand SET Index’s, the company, which has profiles in Iraq, Uzbekistan and Vietnam, said. Particularly as Vietnam moves up the value chain. As per capita income advances from today's USD2,600 in nominal terms, multinationals will be just as determined to sell goods in Vietnam as source from there. Vietnam will most likely not make the list if they continue to table or endlessly debate these critical, progressive revisions. Benefit from a client coverage model that focuses on building deep long-term relationships with clients for advisory, financing and trading needs. This applies to listed firms, equitized state-owned enterprises (SOEs), and private non-listed businesses. If you would like to learn how Lexology can drive your content marketing strategy forward, please email email@example.com. Individual investors are subject to personal income tax in respect of income earned from the trading of securities in Vietnam. Listing is the process of taking a privately-owned organisation (including a company that has previously conducted a public offer or a State Owned Company undergoing the equitisation process) and making it available to the public via trading on a stock exchange. US – Vietnam Signed Important Cooperation Agreement in Agriculture, Vietnam Committed to Buying up to $500 million US Chilled and Frozen Pork in 3 years, USAID and U.S. Retail, Apparel, and Footwear Companies Announce Memorandum of Understanding to Help Hard-Hit Supply-Chain Workers in Asia, ExxonMobil, Hai Phong City and JERA Sign Memorandum of Understanding for Integrated LNG to Power Project in Vietnam, United States Launches a Program to Accelerate Vietnam’s Energy Security, PNJ Awarded Outstanding Enterprise of the Year in Asia, United States Companies and Vietnam Partners Sign Cooperation Agreements in Energy Sector, U.S. Delegation to Visit Indonesia, Vietnam, and Myanmar, The United States Announces Assistance to Vietnam to Respond to Tropical Storm Linfa, The United States Announces Assistance to Strengthen Vietnam’s E-Government Capacity, JICA Provides Financing for One of the Biggest Solar Projects in Vietnam, The United States Celebrates 25 Years of Partnership with Vietnam, Protectionism Could Cost the Worldwide Economy $10 Trillion in 2025, More Choices for Vietnamese to Seek High Quality Health Care Services, Global Ride-Hailing Firm on the Trend of Launching Carbon Offsetting Service, Vietnam’s Economy Remains Resilient Despite Challenges from Covid-19 Pandemic. True, Vietnam’s private sector is young and its capital markets still worryingly shallow, but a host of other metrics point in the right direction. Offshore market development has a pivotal role to play in Vietnam moving upmarket – both in terms of attracting foreign capital and lowering borrowing costs. With a wide-range of webinars coming up this month, register for free and hear from legal experts covering the most poplar topics from around world. Even more importantly, the need to finance business shifting Vietnam's way is catalyzing the development of a thriving offshore debt market. If they cause loss and damage, they must pay compensation in accordance with law. In which, the securities is the easiest and most attractive investment channel today, so it is forecast that the capital flow into this channel will be significant. Capital markets services in Vietnam. The following article is written by Euromoney and sponsored by HSBC. Looking back at the movements of the global securities market as well as Vietnam’s securities market in the past week, we have seen a positive response to the information from the US election result. Several key provisions in that draft (if in-place and operational) would give MSCI concrete data to observe (rather than speculative) and improve Vietnam’s chances of an upgrade. Market disclosure rules apply to public companies, bond issuers, listed companies, securities companies, funds management companies, securities investment companies and stock exchanges. Finally, bigger peers, namely Indonesia, might suddenly bolt onto the scene with appealing offshore debt deals that siphon way demand from Vietnam. Not for retail customers. b. As the M&A advisor to many of the world’s multinational businesses, governments and institutions, HSBC is well positioned to deliver the financing and knowledge you need to meet your growth objectives. Yet Mong Duong's notes maturing in May 2029 are a particular milestone for Vietnam's foray into global debt circles. In addition, the offender may also be subject to an order to compulsorily implement the law; to compulsorily rescind or rectify incorrect or false information; to compulsorily recall securities which have been issued, and to refund deposits or the purchase price of securities to investors.