Circular 03: Removing further obstacles in the market upgrade process.

This is one of the key factors facilitating foreign organizations in opening bank accounts. Previously, foreign organizations had to spend weeks, even months, completing the consular legalization procedures for documents issued abroad before they could open accounts in Vietnam. This not only prolonged the process but also caused many investors to miss investment opportunities.

This is the content of Circular 03 issued by the State Bank of Vietnam, regulating the opening and use of VND accounts for conducting indirect foreign investment in Vietnam.

The circular officially takes effect from June 16, 2025, and replaces Circular No. 05/2014/TT-NHNN, contributing to removing another bottleneck in the roadmap to upgrade the Vietnamese stock market.

Thus, another bottleneck in the process of upgrading the Vietnamese stock market has been removed.

Previously, Circular 68/2024/TT-BTC officially came into effect on November 2, 2024, allowing foreign institutional investors to trade shares without requiring sufficient funds (Non-Pre-funding solution - NPS), and also providing a complete roadmap for disclosing information in English.

This circular allows foreign institutional investors to purchase shares without needing to have sufficient funds at the time of placing an order, and establishes a roadmap for disclosing information in both Vietnamese and English. The new regulations in Circular 68 are considered highly feasible, consistent with international practices, and have been positively received by market rating agencies.

According to several assessments, the Vietnamese stock market could receive approval for an upgrade from FTSE Russell in September 2025 and be considered for inclusion in MSCI's watchlist in June 2025. The MSCI reclassification process will take longer as it depends on achieving a sustainable and comprehensive solution regarding foreign ownership limits in the stock market.

Furthermore, from May 5th, 2025, the KRX system will officially be operational, contributing to the development of more complex and diversified financial products and order types. This is also a crucial factor in bringing Vietnam closer to its goal of upgrading from frontier to emerging market status in 2025.

According to BSC Research, foreign investors will engage in net buying 2-4 months before FTSE announces its approval of the upgrade (T0) and the start of the transition process (T1). For MSCI, foreign investors act earlier, 4-5 months in advance, due to the larger size of the index-referenced funds and the greater influence of MSCI compared to FTSE Russell.

Source: https://baodautu.vn/thong-tu-03-go-them-nut-that-trong-tien-trinh-nang-hang-thi-truong-d285956.html