Are persons with securities qualifications considered professional investors in Vietnam?

Are persons with securities qualifications considered professional investors in Vietnam?

In Clause 1, Article 11 of the Securities Law 2019, there are regulations on professional investors as follows:

1. Professional investors are investors that have adequate financial capacity or securities qualifications, including:

a) Commercial banks, foreign branch banks (FBB), finance companies, insurers, securities companies, fund management companies, securities investment funds, international financial institutions, off-budget financial funds, state-owned financial institutions permitted to buy securities as prescribed by relevant laws;

b) Any company whose contributed charter capital exceeds 100 billion VND; every listed or registered organization;

c) Holders of securities professional certifications;

d) Any individual holding a quantity of listed or registered securities that is worth at least 02 billion VND as confirmed by the securities company;

dd) Any individual whose taxable income in the latest year is at least 01 billion according to his/her submitted tax return or tax deduction documents of his/her income payer.

According to current regulations in Vietnam, persons with professional qualifications in securities is not yet considered professional investors, they needs to meet other conditions to be recognized as professional investors.

What are conditions for persons with securities qualifications to be considered professional investors in Vietnam? 

Clause 2, Article 97 of the Securities Law 2019 stipulatesconditions for persons with securities qualifications to be considered professional investors as follows:

2. A securities professional certification will be granted to an individual who:

a) has full legal capacity; is not facing criminal prosecution and is not being banned from securities practice as prescribed by law;

b) has a bachelor’s degree or above;

c) has professional training in securities; and:

d) passes the test for the securities professional certification. Foreigners who have securities qualifications and foreign certified securities professionals need to pass the test securities and securities market of Vietnam.

According to this Article, in addition to having a professional qualification in securities, it is necessary to meet additional conditions listed above in order to be granted a securities professional certification. When you are granted a securities professional certification, you will be considered a professional investor in Vietnam.

Best Regards!