Can Vietnamese buy foreign stocks?

Can Vietnamese buy foreign stocks?

Pursuant to Clause 1, Article 52 of the Investment Law 2020 stipulates the form of investment abroad:

1. Investors shall carry out outward investment activities in the following forms:

a) Establishment of a business organization in accordance with the law of the host country;

b) Making investment on the basis of an overseas contract;

c) Contribution of capital to, purchase of shares or stakes of an overseas business organization to participate in management of such business organization;

d) Trading in securities, other financial instruments, or making investment via securities investment funds and other intermediary financial institutions in a foreign country;

dd) Other forms of investment prescribed by law of the host country.

Based on the above provisions in Vietnam, you can contribute capital, buy shares, buy capital contributions of foreign economic organizations to participate in the management of such economic organizations or buy and sell securities through securities investment funds and other financial intermediaries abroad.

What are regulations on invest abroad in Vietnam?

Pursuant to Article 69 of Decree 31/2021/ND-CP regulating foreign investment capital:

1. Sources of outward investment capital consist of money and other legal assets of investors, including equity and loans in Vietnam transferred overseas and profits obtained from outward investment projects and retained to carry out investment activities in foreign countries.

2. Money and other legal assets prescribed in Clause 1 of this Article include:

a) Foreign currencies on the accounts opened at licensed credit institutions or purchased from licensed credit institutions as regulated by law;

b) Vietnamese dong conforming to Vietnam’s law on foreign exchange management;

c) Machinery, equipment, supplies, raw materials, fuels, finished and semi-finished goods;

d) Value of intellectual property rights, technologies, brands and rights to assets;

dd) Investors' shares, stakes and projects swapped at business organizations in Vietnam and business organizations in foreign countries as prescribed in Clause 4 of this Article;

e) Other legal assets prescribed by regulations of civil law.

3. Outward investment capital shall be used to contribute capital, grant loans to foreign business organizations, pay for purchase of shares or stakes, fulfill guarantee obligations that arise (if any) in order to make outward investment in the forms specified in Points a, b, c and dd Clause 1 Article 52 of the Law on Investment. The amounts of capital transferred overseas, when recovered and repatriated, shall not be included in the capital transferred overseas.

4. Vietnamese investors are entitled to use their shares, stakes or investment projects in Vietnam to pay for or swap the purchase of shares, stakes or investment projects of foreign business organizations. In this case, Vietnamese investors shall follow the procedures for issuance of the outward investment registration certificate and then foreign investors shall follow the investment procedures in Vietnam as prescribed by law.

In this case, Vietnamese investors shall carry out procedures for granting overseas investment registration certificates first, then foreign investors shall carry out investment procedures in Vietnam in accordance with law.

Best Regards!