Removing barriers for foreign capital into Vietnam's stock market

Another highlight is the removal of the regulation allowing the general meeting of shareholders to lower the maximum foreign ownership ratio below the statutory level.

On September 12, the State Securities Commission announced Decree 245/2025/ND-CP issued by the Government , amending and supplementing Decree 155/2020/ND-CP detailing the implementation of a number of articles of the Securities Law. This is considered an important reform step, aiming to remove barriers and create more favorable conditions for foreign investors to access the Vietnamese stock market.

The Decree supplements regulations to help foreign investors easily prove their professional investor status through legal documents of the host country. At the same time, the time from IPO to official trading of shares is also shortened from 90 days to 30 days, helping businesses quickly list and ensure the rights of investors.

Another highlight is the removal of the regulation that allowed the general meeting of shareholders to lower the maximum foreign ownership ratio below the statutory level. The new regulation opens the door to foreign capital, and requires public companies to complete the procedure of notifying the foreign ownership ratio within 12 months from the effective date of the decree.

Not only that, the procedure for granting securities trading codes to foreign investors has also been simplified. Investors can trade immediately after being granted an electronic code without having to submit paper documents, in accordance with international practice. At the same time, the State Bank has issued circulars to facilitate the opening of indirect investment capital accounts, reducing costs and time to enter the market.

The Decree also paves the way for the implementation of the central counterparty (CCP) mechanism, expected to be applied from 2027, to improve system safety and limit risks. In addition, foreign investment fund management companies are granted two transaction codes to separate operations, preparing for the master account model according to international practices.

Information transparency and investor protection are also the focus of this revision. Listed enterprises are required to disclose information in English, corporate bonds issued to the public must have credit ratings from reputable international organizations, and the scope of payment guarantee organizations is also expanded. The Decree supplements many provisions related to corporate governance, dividend payments, and disclosure of capital use information, in order to protect the legitimate rights of domestic and foreign investors.

Source: https://nld.com.vn/go-rao-can-de-von-ngoai-vao-thi-truong-chung-khoan-19625091220495859.htm