In what manners may foreign investors invest in Vietnam's securities market?
In what manners may foreign investors invest in Vietnam's securities market? Is it permissible for foreign investors to select a representative securities trader in Vietnam? What are conditions for follow-on offering by public securities investment companies in Vietnam?
In what manners may foreign investors invest in Vietnam's securities market?
I want to know regulations on manners which foreign investors may invest in Vietnam's securities market
Answer:
Pursuant to Clause 1, Article 138 of the Decree 155/2020/NĐ-CP stipulating as follows:
Foreign investors may make investment on the securities market of Vietnam in the following manners:
a) Direct investment and trading on the securities market of Vietnam under the securities and securities market laws;
b) Indirect investment by entrusting a securities investment fund management company or the branch in Vietnam of a foreign fund management company.
Is it permissible for foreign investors to select a representative securities trader in Vietnam?
According to current regulations of the law in Vietnam, is it permissible for foreign investors to select a representative securities trader in Vietnam?
Answer:
Pursuant to Clause 4, Article 138 of the Decree 155/2020/NĐ-CP stipulating as follows:
The foreign investor may select a representative trader in Vietnam who:
- is not serving an imprisonment sentence or banned by the court from business operation;
- has securities-related qualifications, including: certificate of basic training in securities and securities market, certificate of training in securities and securities market laws; and
- is the sole representative trader in Vietnam of the foreign investor and is authorized by the foreign investor in writing.
Therefore, foreign investors may select a representative securities trader in Vietnam as long as they satisfy the above regulations.
What are conditions for follow-on offering by public securities investment companies in Vietnam?
I want to ask about the conditions for follow-on offering by public securities investment companies in Vietnam.
Answer:
Pursuant to Clause 2, Article 257 of the Decree 155/2020/NĐ-CP stipulating as follows:
Conditions for follow-on offering by public investment companies:
- The investment company’s charter has regulations on follow-on offering and there is a plan for follow-on offering which is approved by the GMS;
- The company makes a profit in the year preceding the offering year and does not have accumulated loss when the offering is registered;
- The securities investment fund management company fulfills the conditions specified in Point dd Clause 1 of this Article.
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