Recently, the National Assembly of Vietnam has approved the Law on Securities 2019, replacing the Law on Securities 2006 and Law on amendments and supplements to the Law on Securities 2010.
According to the Law on Securities 2019 of Vietnam, in order to make a public offering of bonds, an enterprise (the issuer) shall satisfy the following requirements:
- The contributed charter capital is at least 30 billion VND on the offering date according to the accounting books;
- The issuer has profit in the preceding year and has no accumulated loss on the offering date; there is no debt that is overdue for more than 01 year;
- There is a plan for issuance, use and repayment of the capital generated by the offering ratified by the General Meeting of Shareholders, Board of Directors, the Board of members or the company president;
- The issuer has a commitment to fulfill its obligations to the investors in terms of conditions for issuance, payment, assurance of the lawful rights and interests of investors and other conditions;
- The offering is consulted by a securities company, unless the issuer is already a securities company;
- The issuer is not undergoing criminal prosecution and does not have any unspent conviction for economic crimes;
- The issuer has a credit rating if required by the Government;
- The issuer has an escrow account to receive payments for the offered bonds;
- The issuer has a commitment to have its shares listed on the securities trading system after the end of the offering.
View full text of the Law on Securities 2019 of Vietnam, effective from January 01, 2021.
Thuy Tram
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