IN WHAT TYPES CAN FOREIGN INVESTORS INVEST IN VIETNAM STOCK MARKET?

Legal base

– Decree 155/2020/ND-CP

– Circular 51/2021/TT-BTC

Investment types of foreign investors in the stock market in Vietnam

According to the provisions of Decree 155/2020 /ND-CP, there are 2 types of investment for foreign investors to invest in the Vietnamese stock market, including:

– Direct investment and trading on the Vietnamese stock market in accordance with the securities and stock market law;

– Indirect investment in the form of entrusting capital to securities investment fund management companies, branches of foreign fund management companies in Vietnam.

Do foreign investors have to register for a securities trading code?

– When investing in direct type, foreign investors must register a securities trading code with the Vietnam Securities Depository and Clearing Corporation before carrying out investment activities.

– When investing in the indirect type, foreign investors do not have to register for a securities trading code; Securities investment fund management companies and branches of foreign fund management companies in Vietnam that receive entrusted capital from foreign investors must register for a securities trading code.

Can foreign investors open investment capital accounts to carry out investment activities on the Vietnamese stock market?

According to the provisions of Circular 51/2021/TT-BTC, foreign investors can open 1 indirect investment capital account at 1 licensed depository bank to trade foreign exchange to carry out investment activities above Vietnam stock market.