I. Legal Basis

Decree 155/2020/ND-CP and Circular 51/2021/TT-BTC have established a legal framework for foreign investors in the Vietnamese stock market. Foreign investors can participate by purchasing shares, corporate bonds, and indirectly investing through securities investment funds. They can own up to 100% of the charter capital of listed companies, except for industries with specific ownership ratio regulations. The decree requires listed companies to report on the ownership status of foreign investors to ensure transparency. Circular 51/2021/TT-BTC guides investors on how to open accounts with licensed securities companies in Vietnam and comply with foreign exchange management regulations.

II. Forms of Investment by Foreign Investors in the Vietnamese Stock Market

According to Decree 155/2020/ND-CP, foreign investors have two main forms of investment in the Vietnamese stock market. The first form is direct investment, where investors can trade on the Vietnamese stock market according to current legal regulations. The second form is indirect investment, where investors entrust capital to securities investment management companies or branches of foreign investment management companies in Vietnam. These two forms not only open opportunities for foreign investors but also contribute to the development of the Vietnamese stock market.

III. Do Foreign Investors Need to Register for a Securities Transaction Code?

When investing directly, foreign investors must register for a securities transaction code with the Vietnam Securities Depository before carrying out investment activities. In the case of indirect investment, foreign investors do not need to register for a securities transaction code; instead, the securities investment management companies or branches of foreign investment management companies in Vietnam that receive the capital entrusted by foreign investors must register for a securities transaction code.

IV. Can Foreign Investors Open Investment Capital Accounts to Conduct Investment Activities in the Vietnamese Stock Market?

According to Circular 51/2021/TT-BTC, foreign investors can open one indirect investment capital account at a licensed depository bank authorized to conduct foreign exchange business to carry out investment activities in the Vietnamese stock market.

VI. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm

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