Facilitating foreign investors, promoting upgrading Vietnam's stock market

NDO - The State Bank has just issued Circular No. 03/2025/TT-NHNN, effective from June 16, 2025, which removes the requirement for consular legalization of documents issued by foreign countries when foreign organizations open indirect investment accounts in Vietnam. This is an important change, helping to create more favorable conditions for foreign investors when participating in the Vietnamese financial market.

Báo Nhân dân•19/05/2025

Previously, to open an indirect investment capital account, foreign organizations had to spend a lot of time going through consular legalization procedures. This caused many investors to miss out on investment opportunities and reduced the attractiveness of the market. Eliminating this procedure will help shorten the time to enter the market, reduce costs and administrative procedures, thereby attracting more capital flows from abroad.

Circular 03 was issued in the context of Vietnam's efforts to comprehensively reform to upgrade the stock market. Previously, the Ministry of Finance issued Circular No. 68/2024/TT-BTC (effective from November 2024), allowing foreign organizations to buy shares without having enough money in hand when placing an order - known as the "Non Pre-funding Solution" (NPS).

Circular 03 also stipulates a roadmap for information disclosure in both Vietnamese and English, helping to increase transparency and access to information for international investors.
In addition, from May 5, 2025, the information technology system for managing and operating transactions on the Vietnamese stock market - KRX has been officially put into operation, supporting the implementation of more modern financial products and transaction orders, approaching international practices.

International organizations such as FTSE Russell (Global Financial Market Rating Organization) and MSCI (Morgan Stanley Capital International - Market Index Provider) have recognized Vietnam's positive reforms. FTSE may announce an upgrade of Vietnam's stock market in September 2025, while MSCI plans to add Vietnam to its watch list from June 2025.

The issuance of Circular 03 is expected to be a practical step, helping Vietnam move closer to its goal of upgrading its market, while strengthening the confidence of domestic and foreign investors.

Source: https://nhandan.vn/tao-thuan-loi-cho-nha-dau-tu-nuoc-ngoai-thuc-day-nang-hang-thi-truong-chung-khoan-viet-nam-post880796.html

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