by finandlife21/06/2017 08:01
1. Foreign Ownership Limits: Companies in certain conditional sectors and sensitive sectors are subject to the relevant Foreign Ownership Limit.
2. Foreign Room Level: The equity market is significantly impacted by foreign room issues.
3. Equal Rights to Foreign Investors: More information on the stock exchanges and the Vietnamese Securities Depository (VSD) websites can now be found in English. However, some company related information is not always readily available in English. In addition, the rights of foreign investors are limited as a result of the stringent foreign ownership limits imposed on both total as well as individual foreign investors.
4. Foreign Exchange Market Liberalization Level: There is no offshore currency market and there are constraints on the onshore currency market (e.g., foreign exchange transactions must be linked to security transactions). In addition, liquidity on the onshore currency market has been relatively low in the recent past.
5. Investor Registration & Account Setup: Registration is mandatory and account setup requires the approval of the VSD. The introduction of an online registration service and the shortened time for the issuance of the Securities Trading Code are seen as positive developments. However, certain supporting documents are still required to be translated in Vietnamese.
6. Market Regulations: Not all regulations can be found in English.
7. Information Flow: Stock market information is not always disclosed in English and occasionally is not detailed enough.
8. Clearing and Settlement: There is no formal clearing house and the VSD acts as the clearing agent. In addition, there are no overdraft facilities and the prefunding of trades is required.
9. Transferability: Off-exchange transactions and in-kind transfers require prior approval from the State Securities Commission of Vietnam"
Source: MSCI