This is a notable content of the Law on Securities 2019, issued by the National Assembly of Vietnam on November 26, 2019.
Specifically, according to Article 78 of the Law on Securities 2019 of Vietnam, a foreign securities company or foreign fund management company may establish a representative office in Vietnam when:
- It is licensed and has been lawfully operating in this home country;
- The home country’s licensing authority and State Securities Commission (SSC) has entered into a mutual or multilateral agreement on information exchange, management, inspection, supervision of securities activities and securities market, or the company has been managing investment funds in Vietnam; the remaining operating period is at least 01 years.
The representative office in Vietnam of a foreign securities company or fund management company has one, some or all of the following activities:
- Communication office and market research;
- Facilitate development of projects for cooperation in securities and securities market in Vietnam;
- Expedite and supervise implementation of agreements between the company and Vietnamese business organizations;
- Expedite and supervise execution of the projects in Vietnam funded by the company.
Note: Representative offices of foreign securities companies and foreign fund management companies must not trade securities. SSC shall issue certificates of registration; manage and supervise operation of representative offices in Vietnam of foreign securities companies and foreign fund management companies.
View more details at the Law on Securities 2019 of Vietnam, effective from January 01, 2021.
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